Goldman Sachs Keeps Neutral Rating on Marvell Despite Strong Q2 Results

Despite delivering another solid quarter, Goldman Sachs analyst James Schneider is staying cautious on Marvell Technology (MRVL) stock. In a recent report, Schneider reiterated a Neutral rating and $195 price target for MRVL, citing that the stock could remain 'range bound' after results that largely matched expectations.

The chipmaker reported $2.74 billion in fiscal Q2 revenue, up 37% year over year, while adjusted EPS came in at $0.94. Both figures topped Wall Street's estimates of $2.71 billion and $0.93, respectively. Q3 guidance was also slightly above expectations, with revenue seen at $3.15 billion versus the $3.04 billion consensus.

Schneider believes that Marvell's custom compute business growth in the second half of fiscal 2027 will be a key factor in determining the stock's next move. The firm is looking for evidence that growth in this area can continue at a pace that supports higher expectations. Additionally, Goldman wants to see updates on Marvell's 2027 and 2028 Data Center revenue targets.

The analyst also highlighted questions around Marvell's major customer relationships, specifically the expanded Google (GOOGL) partnership and the ASIC revenue ramp at Microsoft (MSFT).