Key takeaways
- Shares of Marvell Technology sent Nasdaq 100 stocks higher following strong fiscal third-quarter results released after the bell Tuesday.
- The chipmaker’s fourth-quarter revenue forecast came in significantly above analysts’ consensus estimate.
- Analysts at Bank of America (BofA) said Marvell Technology could post long-term sales growth of 20% to 25%.
Marvell Technology (MRVL) the rise in stocks has exceeded all Nasdaq100 gains Wednesday after the chipmaker released a running quarterly forecast that exceeded Wall Street expectations.
On Tuesday evening, the company reported fourth-quarter fiscal 2025 revenue of $1.8 billion, plus or minus 5%, generating growth of 26%. year after year and well above Visible Alpha’s analyst consensus of $1.65 billion.
Chief Executive Officer (CEO) Matt Murphy said the forecast was “driven by our custom AI silicon programs,” which are now in volume production.
About the company call for resultsMurphy noted that Marvell was on track to exceed his previous expectations, namely artificial intelligence (AI) sales of networking chips and custom processors would reach $2.5 billion by fiscal 2026.
Shares of Marvell jumped about 23% on Wednesday and are expected to nearly double in 2024.
Analysts see more growth potential
Analysts at Bank of America (BofA) maintained in a report on Wednesday a note “buy” and raised its price target from $108 to $125, representing a roughly 6% premium to Marvel’s ascent to around $118 a share on Wednesday.
The chipmaker “has transformed itself into a leader in data center silicon,” analysts said, with “growth opportunities in cloud data centers, 5G infrastructure, advanced automotive, enterprise networking and security markets.
These opportunities can generate sales growth of 20-25% over the long term and 25-30% over the long term. earnings per share (EPS) growth, adds the bank’s analyst report.
This article has been updated to reflect the latest share price information.
