Melius Research downgrades Marvell Technology on concerns over custom silicon business

Brokerage Melius Research downgrades chipmaker Marvell technology MRVL.O to "hold", sets PT at $66

PT still implies 9.8% upside to the stock's last close

Brokerage previously expected Marvell to do well due to its custom silicon business, but now thinks this may not happen

Flags concerns about Marvell's role in Amazon's AMZN.O and Microsoft's MSFT.O custom accelerator projects, and potential competition from other companies

Brokerage expects Marvell's optical AI business to do well, but thinks this may not be enough to offset issues in other areas

Says MRVL's legacy businesses, such as industrial, telco, and enterprise networking, are in decline, but may see a modest recovery

As of last close, MRVL stock down 45.6% YTD