1. Benchmark downgraded MRVL to hold, losing Amazon's Trainium designs to Alchip. 2. Projected custom-chip growth for MRVL drops to 20% in 2026. 3. Microsoft may partner with Broadcom, affecting MRVL's future engagements. 4. MRVL shares fell 7% reflecting investor pessimism over Amazon's business. 5. Analysts say MRVL needs to prove its growth in the second half of next year.
FAQ
Why Bearish?
The downgrade by Benchmark and loss of key business with Amazon indicate significant challenges ahead. Historically, downgrades correlate with price declines, notably when driven by critical company losses.
How important is it?
The news directly impacts MRVL's future revenue and growth forecasts. Changes in Amazon and Microsoft's engagements are pivotal for MRVL's market position.
Why Short Term?
Impact is immediate as market reacts swiftly to downgrades and significant contract losses. Short-term volatility often follows such news.