Marvell (MRVL) shares plummeted 20% due to weaker data center revenue and uninspiring guidance for the future. Despite the drop, the stock is up 25% in the past three months. An analyst suggests seeing this as an opportunity to invest at a discount, emphasizing the company’s overall revenue and demand for custom AI chips.

JPMorgan remains bullish on MRVL stock, focusing on long-term potential rather than short-term fluctuations. The company’s partnerships with tech giants like Amazon and Google are expected to drive growth. Marvell’s AI infrastructure leadership and product roadmap are seen as strong indicators of future success, despite recent setbacks.

Marvell shares could benefit from a Federal Reserve rate cut in September. JPMorgan anticipates growth from next-generation ASICs, predicting significant contributions in 2026. The stock is considered undervalued with a price-sales ratio of about 11x, presenting a potential 90% upside from current levels, according to analyst projections.

Investors are encouraged to consider buying Marvell shares following the post-earnings decline, with other Wall Street firms also maintaining a positive outlook. The consensus rating on MRVL stock is a “Strong Buy,” with a mean target of approximately $93, suggesting over 45% upside potential.

Read more at Yahoo Finance: Should You Buy the Post-Earnings Plunge in Marvell Stock?