Marvell Technology (MRVL) Downgraded by TD Cowen Amid AI Accelerator Concerns

Marvell Technology shares slid in pre-market trading after TD Cowen analyst Joshua Buchalter downgraded the stock from 'Buy' to 'Hold' and slashed his price target from $90 to $85. The MOVE reflects just 1.1% upside potential, signaling tempered expectations despite the company's strong intellectual property portfolio.

Buchalter, ranked among TipRanks' top 12% of analysts, cited limited visibility in Marvell's custom XPU pipeline—a critical segment for AI accelerators—as the primary driver for the downgrade. Rising competition in electro-optics and a 30% stock surge over the past month further skewed the risk-reward balance, prompting investors to seek clearer semiconductor plays elsewhere.

While acknowledging Marvell's long-term growth prospects tied to AI demand, the analyst noted data center revenues have nearly tripled—a bright spot overshadowed by near-term uncertainty. The semiconductor sector continues to reward companies with transparent growth trajectories, leaving Marvell's opaque XPU roadmap at a disadvantage.