Has Marvell Technology Lost Its Amazon Business To Taiwanese Rival?

Shares of Marvell Technology Inc (NASDAQ:MRVL) tanked in early trading on Monday on concerns around the chipmaker having lost out on business with Amazon.com Inc (NASDAQ:AMZN).

Here are some key analyst takeaways:

• Benchmark analyst Cody Acree downgraded the rating from Buy to Hold, while removing the price target.
• JPMorgan analyst Harlan Sur reiterated an Overweight rating on the stock.

Check out other analyst stock ratings.

Benchmark: Following industry meetings in Silicon Valley, "we now have a high degree of conviction that the company has lost both Amazon's Tranium 3 and 4 designs to its Taiwanese competitor, Alchip," Acree said in the downgrade note. This is likely the reason Marvell Technology is projecting XPU growth of only 20% in 2026, he added.

Although the company's guidance for increasing annual Amazon revenue may be correct, this may be linked to continued Tranium 2 volumes rather than a transition to Tranium 3 designs, the analyst stated. Since the liquid cooled variant of Tranium 3 may not be available until mid-2026, "we expect 2026 Tranium 2 volumes to continue to support Marvell's near-term forecasts," he further wrote.

JPMorgan: Recently, there have been some "noise" around Marvell Technology's custom AI XPU engagements with Microsoft Corp (NASDAQ:MSFT) and Amazon, with concerns around the possibility of market share loss to other competitors, Sur said.

"Based on our very recent and extensive primary research efforts, Marvell's recent earnings call, and Marvell's June Custom AI analyst day, we believe that Marvell's ASIC programs at Microsoft and AWS are progressing well, and that there has been no asic program share loss at either Microsoft or AWS on current or next generation ai xpu asic programs," the analyst wrote.

MRVL Price Action: Shares of Marvell Technology had declined by 9.30% to $89.72 at the time of publication on Monday.

Read More:

• Is The Marvell Technology Rally Over Already?

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