Goldman Sachs Sounds Alarm on Marvell Technology Stock Rally

Goldman Sachs has maintained its neutral rating for Marvell Technology (MRVL) despite the company's recent earnings beat, citing concerns that the stock's rally has already priced in most of the good news.

The analyst, James Schneider, argues that investors should focus less on small quarterly beats and more on whether Marvell's custom compute business can accelerate during the second half of fiscal 2027.

Marvell reported $2.74 billion in revenue for its fiscal second quarter, a 37% year-over-year increase that topped Wall Street estimates. Adjusted earnings of $0.94 per share also exceeded expectations.

The company's management provided a stronger-than-expected fiscal third-quarter outlook, with revenue projected at $3.15 billion, ahead of analysts' forecasts.

However, Schneider notes that the hurdle for Marvell has become much higher after its stock surged 185% in 2026. Goldman Sachs wants evidence that Marvell's custom compute business can meaningfully accelerate during the second half of fiscal 2027.