Barclays Cuts Rating on Marvell as Broadcom Pressure Clouds AI Outlook

Overview

• Barclays downgraded Marvell to Equalweight with an $80 price target on Oct. 20, flagging weaker visibility for next year’s data-center goals.
• The bank still expects near-term strength in optics tied to the 800G cycle but sees a less robust ASIC trajectory into 2026 and rising risk at 1.6T speeds.
• Marvell reported record Q2 FY26 revenue of $2.006 billion, up 58% year over year, with data-center revenue of $1.44 billion and non-GAAP operating margin of 34.8%.
• The company has pivoted toward custom AI silicon, electro-optics, and data-center networking, with data-center now accounting for roughly three-quarters of sales.
• Bullish investors argue the stock is undervalued versus intrinsic value estimates and point to the $2.5 billion Automotive Ethernet sale to Infineon funding buybacks and R&D.