Marvell (MRVL) shares lost as much as 20% today after the semiconductor firm reported weaker-than-expected data center revenue for its fiscal Q2 and issued underwhelming guidance for the future.
Still, JPMorgan analyst Harlan Sur says long-term investors should treat the post-earnings decline in MRVL share price as an opportunity to load up on a quality name at a meaningful discount.
Despite today’s crash, Marvell stock is up more than 25% over the past three months.
JPM’s bullish stance on MRVL stock is rooted in long-term conviction, not short-term price action.
Instead of focusing on softness in data center revenue and muted future guidance, Harlan Sur is leaning into a record $2.01 billion the company reported in overall revenue, indicating continued demand for its custom AI chips.
According to Sur, the post-earnings plunge in Marvell shares is worth buying since the long-term narrative remains intact. The chipmaker’s custom ASIC partnerships with tech titans Amazon (AMZN) and Google (GOOGL) will continue to scale, unlocking meaningful further upside over time.
In the near term, Marvell shares could benefit if the Federal Reserve delivers on expectations of a rate cut in September.
Additionally, JPMorgan sees upside from next-generation ASICs like SmartNIC/DPU chips and eSSD controller ASICs, which are expected to contribute meaningfully in 2026.
In short, the investment firm is betting big on Marvell’s AI infrastructure leadership, deep customer ties, and multi-year product roadmap, not just this quarter’s numbers.
Investors should also note that MRVL shares are now trading at an attractive valuation. Their price-sales (P/S) ratio currently sits at about 11x, much lower than several other top AI stocks.
Note that Harlan Sur’s $120 price target on Marvell stock signals potential for 90% upside from current levels.
Investors should consider buying Marvell shares on the post-earnings weakness also because other Wall Street firms are keeping positive on them for the long term as well.
The consensus rating on MRVL stock currently sits at “Strong Buy” with the mean target of roughly $93 indicating potential upside of more than 45% from here.
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