This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) shares fell more than 10% on Monday morning after Benchmark downgraded the semiconductor company, citing concerns over potential design losses with Amazon (NASDAQ:AMZN).
Benchmark analyst Cody Acree said Marvell likely lost Amazon’s Trainium3 and 4 chip designs to Taiwan-based Alchip. The downgrade moves Marvell from Buy to Hold, reflecting slowing XPU growth to an estimated 20% in 2026.
Despite Marvell’s prior guidance suggesting no revenue air pocket from Amazon, Acree noted that the forecast mainly relies on ongoing Trainium2 volumes and Kuiper low-earth orbit projects. The Trainium3 liquid-cooled variant is not expected until mid-2026, adding uncertainty to near-term growth.
Investors will watch Marvell’s upcoming guidance closely as the company navigates potential client shifts.
