Analysts Split on Marvell as Reports Question AWS Trainium Wins
Stifel contends that multi-year ASIC timelines would push any meaningful revenue effects to FY29 at the earliest.
Overview
- Benchmark downgraded Marvell to Hold, citing high conviction that Amazon’s Trainium3 and Trainium4 designs shifted to Alchip.
- Stifel maintained a Buy rating with a $114 target and called reports of Marvell losing key ASIC sockets misleading.
- Stifel said even if a hyperscaler changed partners, developing new custom chips would take three to four years, delaying financial impact.
- Market commentary flagged sharp share declines after reports of lost AWS business and potential Microsoft shifts, with Jim Cramer calling the narrative confusing.
- Benchmark argued Marvell’s near-term guidance likely leans on continued Trainium2 volumes and a Kuiper engagement rather than confirmed Trainium3 transitions.