A Seeking Alpha analyst downgraded Marvell Technology (MRVL) to 'Hold' from 'Buy'. The analyst cited valuation concerns. Marvell's forward P/E ratio reportedly stands around 127x. This high stock price presents an unattractive risk-reward profile for investors.
The downgrade occurred despite Marvell boosting its long-term revenue outlook for fiscal years 2027 and 2028. Surging demand for products in data centers and artificial intelligence infrastructure drives this optimistic forecast. Marvell now expects revenue of $11.5 billion in fiscal 2027. The company projects $16.5 billion in fiscal 2028. This reflects strong growth in its data center and interconnect businesses.