Citi analyst Atif Malik cut estimates and price targets on cloud data-centric semis Nvidia CorpNVDA and Marvell Technology, IncMRVL.
He maintained a Buy on Nvidia and reduced the price target to $210 from $248.
He also maintained a Buy on Marvell and slashed the price target to $71 from $74.
While his supply chain discussions continue to indicate cloud compute demand remains 15-20% above supply at U.S. hyperscalers, he noted slowing macro and advertising sales will likely impact cloud CAPEX growth to ~10% from 15% this year.
Malik assumes no significant impact from new China controls.
MRVL has low direct China data center sales exposure.
Overall, long-term GPU computes and customized off-load ASIC demand remains in the early innings, and he expects new product cycles at NVDA (Hopper/Grace) and MRVL (PAM4/Off-load ASIC) to outperform cloud CAPEX.
Malik cut his estimates and price targets based on lower estimates and market multiples.
Price Action: NVDA shares traded lower by 0.76% at $115.81 on the last check Tuesday.
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