Marvell Heads Into Long Weekend On Upbeat

(MENAFN- Marvell Heads into Long Weekend on Upbeat

Marvell technology (NASDAQ:MRVL) shares surged Friday after reporting a top-and-bottom beat in its first quarter. Marvell posted adjusted earnings of 31 cents per share, topping estimates for 29 cents, according to Refinitiv. It reported $1.32 billion in revenue, while analysts polled by Refinitiv expected $1.3 billion. It expects revenue growth will accelerate in the second half of the fiscal year.
Barclays analyst Blayne Curtis, who has an overweight rating on Marvell, said Marvell's comments that it expects revenue related to artificial intelligence to at least double in fiscal 2024 "stoked the flames."
"Overall, the long-term AI opportunity is difficult to size, but with the core business reset, investors should have an easier time considering MRVL as a safer way to gain exposure to the AI wave," Curtis wrote in an investor note, adding that Marvell belongs in the same basket as Nvidia (NASDAQ:NVDA) and other AI-related stocks.
Marvell's AI-related business was $200 Million last year and is expected to double each of the next two fiscal years.
Citi analyst Atif Malik said the firm opened a positive catalyst watch, adding that the AI-related breakout was a pleasant surprise.
"We like MRVL separating AI vs non-AI (includes storage) [data center] sales on the [April quarter] earnings call to help investors better see the growth of the AI piece," Malik wrote in an investor note. "Moreover, management tempering 5G wireless and enterprise networking growth expectations for next year is prudent in the current macro environment."
MRVL shares rumbled $12.79, or 27.8%, to $63.33.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.