Story updated at 9:50 a.m. to reflect market activity.
Marvell fell -2.7% to $14.24 in morning trading.
The chipmaker is facing mounting headwinds according to the analyst firm.
"We acknowledge a continued upside bias to top-line estimates as several low-end China LTE baseband design wins ramp, but believe mgmt is sacrificing margins for revenue growth-a trade-off investors rarely reward," analyst Rick Schafer wrote. "Mobile&Wireless GM lags corporate average, and is unlikely to change any time soon as QCOM and MTK dominate the mid/high- end of the China mobile segment, relegating MRVL to the competitive low-end."
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Separately, TheStreet Ratings team rates MARVELL TECHNOLOGY GROUP LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARVELL TECHNOLOGY GROUP LTD (MRVL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."