Summit Insights analyst KinNgai Chan downgraded Marvell (MRVL) to Hold from Buy. The company’s Datacenter end-market should continue to drive growth, and Marvell stands to benefit from port count expansion in the AI Server market segment and demand recovery in its traditional core Carrier and Enterprise Networking end-markets, but increased competition in the custom AI ASIC design market could result in further gross margin pressure, the analyst tells investors in a research note. Marvell investors’ expectation are too high, and the company lacks financial leverage, the firm added.
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