Marvell Technology's Stock Soars on Strong AI Chip Demand and Optimistic Q4 Forecast

Marvell Stock Soars 23% as Strong Demand for Custom Artificial Intelligence (AI) Chips Drives Q3 Results and Guidance Above Expectations | The Motley Fool

The chipmaker's CEO said management expects "substantial momentum to continue" in the next fiscal year. Shares of Marvell Technology (MRVL 23.19%) surged 23.2% on Wednesday following the data infrastructure semiconductor specialist's release on the prior afternoon of its report for the third quarter of its fiscal year 2025 (ended Nov. 2, 2024). Investors' positive reaction can be attributed to the quarter's revenue and earnings beating Wall Street's consensus estimates, and fourth-quarter guidance for both the top and bottom lines speeding by analysts' expectations. Powerful demand for artificial intelligence (AI) capabilities was the driver of Marvell's quarterly growth and better-than-expected guidance. Data source: Marvell Technology. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q3 2025 ended Nov. 2, 2024. Investors should focus mainly on the adjusted numbers, which exclude one-time items. Adjusted net income excludes $715.1 million in restructuring charges, $264.9 in amortization of acquired intangible assets, $158.4 million in stock-based compensation, and a few other smaller positive and negative items. Wall Street was looking for adjusted EPS of $0.40 on revenue of $1.45 billion, so Marvell surpassed both expectations. In the quarter, Marvell generated cash of $536.3 million running its operations, up 7% from the year-ago period. The company ended the quarter with cash and equivalents of $868.1 million, up 7% from the prior quarter, and long-term debt of $3.97 billion on its balance sheet. Data source: Marvell Technology. YOY = year over year. The data center end market's phenomenal growth of 98% year over year was driven by strong demand for the company's AI-related products. These mainly include its custom AI chips -- which are application-specific integrated circuits (ASICs) -- and interconnect products for AI-enabled data centers. In fiscal Q3, the data center end market accounted for a whopping 72% of Marvell's total revenue. This is up from just 39% in the year-ago quarter, clearly showing how the company's business profile has changed considerably in just one year. The other four end markets continued to struggle on a year-over-year basis, dragging down the company's overall results. This is a semiconductor industrywide phenomenon, not specific to Marvell. In the earnings release, CEO Matt Murphy commented on the quarter's results and the outlook for Q4: Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell. The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products. Moreover, in addition to expecting a "strong finish to this fiscal year," Murphy said management projects the "substantial momentum to continue in fiscal 2026." For the fiscal Q4 (which ends in late January/early February 2025), management expects: Going into the release, Wall Street had been expecting fiscal Q4 adjusted EPS of $0.52 on revenue of $1.65 billion, so Marvell's outlook sprinted by both expectations. Marvell's overall fiscal Q3 results were just so-so with year-over-year revenue and adjusted EPS only increasing a modest 7% and 5%, respectively. But its fiscal Q4 guidance looks great, with expected revenue growth of 26% year over year and adjusted EPS growth of 17% to 39%. This robust outlook reflects management's confidence that strength in its AI-powered data center end market will continue and that demand in some of its other markets will improve.

Marvell Technology Stock Jumps on Optimism Driven by 'Custom AI'

Late Tuesday, the company called for fiscal 2025 fourth-quarter revenue of $1.8 billion, plus or minus 5%, powering 26% growth year-over-year and well above the analyst consensus of $1.65 billion from Visible Alpha. Chief Executive Officer (CEO) Matt Murphy said the forecast was "driven by our custom AI silicon programs," which are now in volume production. On the company's earnings call, Murphy noted that Marvell was on track to exceed its previous expectation that artificial intelligence (AI) network and custom processor chip sales would reach $2.5 billion by fiscal 2026. Shares of Marvell jumped about 23% Wednesday and have nearly doubled in 2024. Bank of America (BofA) analysts in a report Wednesday maintained a "buy" rating and upped their price target to $125 from $108, which is at a roughly 6% premium to Marvel's ascent to about $118 a share Wednesday. The chipmaker "has transformed into a data center silicon leader," the analysts said, with "growth opportunities across cloud data centers, 5G infrastructure, advanced autos, enterprise networking and security markets." Those opportunities can drive 20% to 25% long-term sales growth and 25% to 30% long-term earnings per share (EPS) growth, the bank's analyst report added.

Marvell stock soars as strong AI demand yields earnings beat, strong guidance By Investing.com

Marvell Technology Inc (NASDAQ:MRVL) reported third-quarter fiscal 2025 earnings that exceeded analyst expectations, driving its stock almost 8% higher in after-hours trading. The company also provided an optimistic outlook for the fourth quarter, citing robust demand for its AI-related products. The data infrastructure semiconductor solutions provider posted adjusted earnings per share of $0.43, surpassing the analyst consensus of $0.41. Revenue for the quarter reached $1.52 billion, beating estimates of $1.45 billion and marking a 7% increase YoY. Marvell's fourth-quarter guidance also impressed investors. The company forecasts revenue of $1.8 billion (+/- 5%), significantly above the $1.646 billion consensus. Adjusted EPS is expected to be $0.59 (+/- $0.05), topping analyst projections of $0.52. Matt Murphy, Marvell's Chairman and CEO, attributed the strong performance to AI-driven demand. "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI," he stated. The company anticipates continued momentum, projecting 26% YoY revenue growth for the fourth quarter. Murphy added, "We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026." Marvell's third-quarter GAAP gross margin was 23.0%, while non-GAAP gross margin reached 60.5%.

Why Marvell Technology Stock Was Soaring Today | The Motley Fool

Shares of Marvell Technology (MRVL 23.91%) were surging today after the semiconductor maker posted better-than-expected results in its third-quarter earnings report, driven in part by strong AI demand and guidance. As of 1:03 p.m. ET, the stock was up 23.6% on the news. Year-over-year revenue growth remained modest at Marvell as it continues to work through an earlier slowdown in the chip sector, but the company still topped estimates. Revenue in the quarter was up 7% from a year ago, or 19% from the previous quarter, to $1.52 billion, which was ahead of the expectations at $1.46 billion and its own guidance. On the bottom line, adjusted earnings per share rose from $0.30 to $0.43, which topped the consensus at $0.41. The fabless chip company, which is known for custom chips, networking chips, and storage solutions, said that momentum is picking up. "We are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," CEO Matt Murphy said. He also noted that its better-than-expected growth is being driven by "custom AI silicon programs." Murphy was also reportedly on the short list of candidates being considered for the CEO job at Intel, though he said he was committed to Marvell. The company's guidance seemed to be what really drove the bounce in the stock. For the fourth quarter, management called for revenue of $1.71 billion-$1.89 billion, up 26% at the midpoint, and adjusted earnings per share of $0.54-$0.64, which compared to estimates at $0.52. The accelerating revenue and increasing AI demand bode well for 2025, as Marvell looks set to capitalize on the AI boom.

Marvell Shares Surge on AI Chip Demand, Forecasts Strong Q4

(Reuters) - Marvell Technology's shares jumped over 13% in premarket trading on Wednesday after the chipmaker's optimistic forecast boosted investor confidence in AI-related stocks. The company, which produces custom AI chips for major cloud provider that help GenAI speedily process large amounts of data, forecast fourth-quarter revenue above estimates on Tuesday. "Marvell is capitalizing on a massive artificial intelligence chip opportunity with a burgeoning custom accelerator portfolio and a dominant optical chip position," Morningstar analysts said in a note. The company's market capitalization could increase by more than $11 billion if premarket gains hold, pushing its valuation to a record $94.37 billion. "We are seeing strong custom AI demand continue into the fourth quarter and have secured supply chain capacity to support our customers' growth forecast," CEO Matt Murphy said on Tuesday. Reuters reported on Tuesday that CEO Murphy is being considered a potential candidate for the position of CEO at the struggling chipmaker Intel. However, Murphy said during a post-earnings call that he remains "100% focused on Marvell." Marvell's shares have climbed nearly 60% this year, driven by Wall Street's AI-focused "picks-and-shovels" trade that has propelled chipmakers' stocks to new highs. Efforts by hyperscalers such as Microsoft, Meta, and Alphabet to reduce reliance on AI chip leader Nvidia's supply-constrained processors have benefited companies like Marvell and its larger competitor, Broadcom. The company's data center segment, which includes custom chips, saw 98% growth to a record $1.10 billion in the third quarter, accounting for over 70% of total revenue in the quarter, compared to about 40% in the year-ago period. Other chipmakers also saw gains, with Broadcom up nearly 2% premarket, while Nvidia, Intel, AMD, and Qualcomm rose between 0.5% and 1.5%. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)

Marvell forecasts fourth-quarter revenue above estimates on strong AI-backed demand

Dec 3 (Reuters) - Chipmaker Marvell Technology (MRVL.O), opens new tab forecast fourth-quarter revenue above estimates on Tuesday, betting on robust demand for its custom artificial intelligence chips from businesses adopting booming generative AI technology. Shares of the Santa Clara, California-based company rose more than 8% in extended trading following the results. The stock hit a record high during Tuesday's trading session. Marvell's shares have risen nearly 60% this year as Wall Street pours billions of dollars into AI-linked stocks, placing huge bets on the future of genAI technology. Shares of larger competitor Broadcom (AVGO.O), opens new tab have rallied about 50% this year. Demand for advanced chips that can support the complex processing needs of genAI has soared as companies race each other to develop the most sophisticated models. The company forecast fourth-quarter revenue of $1.80 billion, plus or minus 5%, compared with analysts' average estimate of $1.65 billion, according to data compiled by LSEG. While the market for AI processors is dominated by Nvidia (NVDA.O), opens new tab, Big Tech has been vying to reduce its dependence on the chip leader's supply-constrained semiconductors, which has helped companies such as Marvell. Marvell said on Monday it had expanded its partnership with Amazon.com (AMZN.O), opens new tab and entered into a five-year agreement with the tech giant's cloud unit, which includes supplying custom AI products. Revenue in Marvell's data center segment grew 98% to $1.10 billion in the third quarter from a year ago. Its total quarterly revenue was $1.52 billion, beating estimates of $1.46 billion. The company expects its AI revenue to triple to more than $1.5 billion this year and hit $2.5 billion for the next fiscal year, CEO Matt Murphy had said at a company event in April. Revenue derived from custom AI chips alone could be between $2.5 billion and $3 billion in 2025 for Marvell, with optical equipment adding another $1.5 billion to $2 billion to AI revenue, Jefferies analysts had said in a note in October. On the other hand, customers in the company's other end-markets such as wireless carriers have been working to drive down chip inventory after excessive buying during the pandemic resulted in a supply glut. Marvell forecast an adjusted gross margin of 60% for the fourth quarter, compared with estimates of 61%. A significant share of Marvell's revenue is now derived from custom AI chips as AI-linked demand rises. The company's custom chips typically carry lower margins than its off-the-shelf products, known as merchant products. Marvell's enterprise networking segment posted a 44% fall to $150.9 million in revenue, while that of the company's carrier infrastructure unit declined 73% to $84.7 million. The company recorded adjusted earnings of 43 cents per share in the third quarter, compared with estimates of 41 cents. Reporting by Arsheeya Bajwa and Abhinav Parmar in Bengaluru; Editing by Shreya Biswas Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:TechnologyTechnology

Marvell Forecasts Fourth-Quarter Revenue Above Estimates on Strong AI-Backed Demand

(Reuters) - Chipmaker Marvell Technology forecast fourth-quarter revenue above estimates on Tuesday, betting on robust demand for its custom artificial intelligence chips from businesses adopting booming generative AI technology. Shares of the Santa Clara, California-based company rose more than 8% in extended trading following the results. The stock hit a record high during Tuesday's trading session. Marvell's shares have risen nearly 60% this year as Wall Street pours billions of dollars into AI-linked stocks, placing huge bets on the future of genAI technology. Shares of larger competitor Broadcom have rallied about 50% this year. Demand for advanced chips that can support the complex processing needs of genAI has soared as companies race each other to develop the most sophisticated models. The company forecast fourth-quarter revenue of $1.80 billion, plus or minus 5%, compared with analysts' average estimate of $1.65 billion, according to data compiled by LSEG. While the market for AI processors is dominated by Nvidia, Big Tech has been vying to reduce its dependence on the chip leader's supply-constrained semiconductors, which has helped companies such as Marvell. Marvell said on Monday it had expanded its partnership with Amazon.com and entered into a five-year agreement with the tech giant's cloud unit, which includes supplying custom AI products. Revenue in Marvell's data center segment grew 98% to $1.10 billion in the third quarter from a year ago. Its total quarterly revenue was $1.52 billion, beating estimates of $1.46 billion. The company expects its AI revenue to triple to more than $1.5 billion this year and hit $2.5 billion for the next fiscal year, CEO Matt Murphy had said at a company event in April. Revenue derived from custom AI chips alone could be between $2.5 billion and $3 billion in 2025 for Marvell, with optical equipment adding another $1.5 billion to $2 billion to AI revenue, Jefferies analysts had said in a note in October. On the other hand, customers in the company's other end-markets such as wireless carriers have been working to drive down chip inventory after excessive buying during the pandemic resulted in a supply glut. Marvell forecast an adjusted gross margin of 60% for the fourth quarter, compared with estimates of 61%. A significant share of Marvell's revenue is now derived from custom AI chips as AI-linked demand rises. The company's custom chips typically carry lower margins than its off-the-shelf products, known as merchant products. Marvell's enterprise networking segment posted a 44% fall to $150.9 million in revenue, while that of the company's carrier infrastructure unit declined 73% to $84.7 million. The company recorded adjusted earnings of 43 cents per share in the third quarter, compared with estimates of 41 cents. (Reporting by Arsheeya Bajwa and Abhinav Parmar in Bengaluru; Editing by Shreya Biswas)

Analysts turn more bullish on Marvell Technology after earnings, with one calling the stock a 'top custom AI chip play'

Wall Street is turning more bullish on shares of Marvell Technology in the wake of a strong earnings report. Shares popped more than 13% in the premarket after the integrated circuit maker surpassed third-quarter estimates after the bell Tuesday and issued upbeat revenue guidance. The findings prompted a slew of Wall Street firms to lift their respective price targets on the semiconductor. JPMorgan analyst Harlan Sur moved his forecast to $130 a share, reflecting nearly 36% upside. "The company's cyclical businesses are now inflecting higher and the AI / cyclical tailwinds will continue into CY25, in our view, and catalyzing a multi-quarter period of positive EPS revisions," wrote Sur, who has an overweight rating on the stock. Shares have rallied 59% this year as investors ramp up beats on all things tied to artificial intelligence. The average price target according implies 17% upside from Tuesday's close, according to FactSet. MRVL YTD mountain MRVL year to date Citi's Atif Malik referred to the stock as the "top custom AI chip play" for 2025 as he lifted his price target to $112 from $91, while Morgan Stanley analyst Joseph Moore boosted his objective to $102 a share, citing a strong customer application specific integrated circuit setup. Malik has a buy rating on shares, while Moore rates them as equal weight. "Marvell posted a good quarter and a stronger outlook, driven in our view mostly by strong builds of Trainium 2 for Amazon," Moore wrote. "Near term momentum should persist, but high valuation and 2026 headwind potential keeps us EW." Bank of America's Vivek Arya upped his target to $125, citing a strong product pipeline and devoted management team. He also boosted earnings per share estimates for upcoming years to reflect the bullish stance, seeing the potential for the figure to exceed $5 a share by 2027. "While bears may complain about [gross margin] pressure as mix shifts to custom chips, the net result is still accretive to operating income and EPS in our view," said Arya, who maintained his buy rating on shares.

Marvell Technology Posts Solid Q3 Beat: Analysts Raise Forecasts, Expect 40%-50% Earnings Growth - Marvell Tech (NASDAQ:MRVL)

The company's Q4 sales and earnings guidance came in 9% and 13% ahead of Street expectations. Shares of Marvell Technology Inc MRV climbed in early trading on Wednesday, after the company reported upbeat earnings for the third quarter. Bank of America Securities analyst Vivek Arya maintained a Buy rating, while raising the price target from $108 to $125. Stifel analyst Tore Svanberg reiterated a Buy rating, while raising the price target from $114 to $125. Goldman Sachs analyst Toshiya Hari reiterated a Buy rating, while raising the price target from $87 to $115. Oppenheimer analyst Rick Schafer maintained an Outperform rating, while raising the price target from $110 to $125. KeyBanc Capital Markets analyst John Vinh reaffirmed an Overweight rating, while raising the price target from $95 to $125. Piper Sandler analyst Harsh Kumar maintained an Overweight rating, while raising the price target from $100 to $120. Cantor Fitzgerald analyst Quinn Bolton maintained a Buy rating, while raising the price target from $95 to $120. Check out other analyst stock ratings. BofA Securities: Marvell Technology presents "a unique investment in AI electro-optics and custom chips," Arya said. It also has more than 75% data center exposure, and is well positioned to drive 40%-50% annual earnings growth for the next several years. The company delivered a strong beat and raise quarter, the analyst stated. "We see upside to both MRVL's custom chip ramp and to its operating margin," he wrote. Stifel: Marvell delivered its quarterly results at the high-end of its guidance, Svanberg said. Data center and AI revenues grew by 25% sequentially "on significant custom silicon ramps, proving out mgt.'s prescient strategic focus years ago," he added. The company raised its guidance for the January quarter, "on further DC/AI acceleration while non-DC segments continue their cyclical recovery," the analyst wrote. Marvell's ASIC business could generate $8 billion to $10 billion over the next 10 years. Goldman Sachs: Marvell reported revenues of $1.52 billion, 4% higher than consensus. Hari said. Marvell guided to fourth-quarter revenues to $1.8 billion, representing 26% year-on-year growth at the midpoint and coming in 9% above Street consensus, he added. The company expects all business segments to grow sequentially, the analyst stated. "Importantly, we expect robust topline growth to translate into strong margin and earnings expansion supported by the operating leverage inherent in Marvell's business model," he further wrote. Oppenheimer: Marvell reported its third-quarter sales and earnings higher than consensus by 4% and 5%, respectively. "More impressively, F4Q (Jan.) guided 9%/13% ahead of Street led by accelerating custom AI ASIC and networking," Schafer said. Data center and AI revenues could grow by more than 50% next year, the analyst stated. "In our view, custom ASIC could approach $4B in CY25, roughly 2x investor expectations," he further wrote. KeyBanc Capital Markets: Marvell reported revenues of $1.52 billion, higher than consensus of $1.46 billion, and earnings of 43 cents per share, topping expectations of 41 cents per share, Vinh said. The company guided to fourth-quarter revenues of $1.8 billion, higher than consensus of $1.65 billion, and earnings of 59 cents per share, higher than consensus of 52 cents, he added. The upside was driven by "significant volume ramp of AI custom ASICS," with Data Center revenues growing almost 100% year-on-year, the analyst stated. "MRVL reiterated plans to significantly exceed its FY25/FY26 AI rev targets of $1.5B/$2.5B with FY25 exceeded by several hundred millions of dollars," he added. Piper Sandler: Marvell indicated that data center growth was driven "predominantly by the step up of the custom AI silicon ramp," Kumar said. Further commentary suggested that AI revenues are tracking ahead of the company's original target of $1.5 billion and $2.5 billion for this year and next year, respectively. "From an end market perspective, data center, carrier, and consumer outperformed expectations, while networking missed expectations and auto/industrial was roughly in-line with the Street," the analyst wrote. He expressed optimism around tailwinds in custom ASICs continuing into next year. Cantor Fitzgerald: The company expanded its strategic relationship with Amazon.com Inc's AMZN AWS business, "through a five year, multi-generational agreement that includes collaboration across multiple AWS products," Bolton said. As part of the agreement, AWS will acquire up to around 4.2 million of Marvell shares with an exercise price of $87.7706 per share, he added. The company reported strong results and guidance, with the Data Center segment continuing to outperform. "Next year, both custom AI silicon and electro-optics are expected to grow meaningfully, leading to significant upside to our prior estimates," he further wrote. Price Action: Shares of Marvell had risen by 21.44% to $116.47 at the time of publication on Wednesday. Read More: What's Going On With Marvell Technology Stock Wednesday? Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Marvell Technology Stock Climbs After Better-Than-Expected Q3 Results, Strong Q4 Guidance - Marvell Tech (NASDAQ:MRVL)

Quarterly revenue comes in at $1.52 billion, which beat the consensus estimate of $1.46 billion. Marvell Technology Inc. MRVL reported its third-quarter results after Tuesday's closing bell. Here's a look at the key figures from the quarter. The Details: Marvell Technology reported quarterly earnings of 43 cents per share, which beat the analyst consensus estimate of 41 cents. Quarterly revenue came in at $1.52 billion, which beat the consensus estimate of $1.46 billion and is an increase over sales of $1.42 billion from the same period last year. Read Next: TikTok Shop Bags More Than $100 Million In Black Friday Sales With Potential Ban Ahead "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," said Matt Murphy, Marvell's CEO. "The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products. We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026," Murphy added. Outlook: Marvell sees fourth-quarter earnings of 59 cents per share, plus or minus five cents, versus the 52-cent estimate. The company expects fourth-quarter revenue of $1.8 billion, plus or minus 5%, versus the $1.65 billion estimate. MRVL Price Action: According to Benzinga Pro, Marvell Technology shares are up 8.99% after-hours at $104.54 at the time of publication on Tuesday. Read More: Art Cashin's Lessons: Cuban Crisis Trades To Timeless Wall Street Wit Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Marvell forecasts fourth-quarter revenue above estimates on strong AI-backed demand

Chipmaker Marvell Technology forecast fourth-quarter revenue above estimates on Tuesday, betting on robust demand for its custom artificial intelligence chips from businesses adopting booming generative AI technology. Shares of the Santa Clara, California-based company rose more than 8% in extended trading following the results. The stock hit a record high during Tuesday's trading session. Marvell's shares have risen nearly 60% this year as Wall Street pours billions of dollars into AI-linked stocks, placing huge bets on the future of genAI technology. Shares of larger competitor Broadcom have rallied about 50% this year. Demand for advanced chips that can support the complex processing needs of genAI has soared as companies race each other to develop the most sophisticated models. The company forecast fourth-quarter revenue of $1.80 billion, plus or minus 5%, compared with analysts' average estimate of $1.65 billion, according to data compiled by LSEG. While the market for AI processors is dominated by Nvidia, Big Tech has been vying to reduce its dependence on the chip leader's supply-constrained semiconductors, which has helped companies such as Marvell. Marvell said on Monday it had expanded its partnership with Amazon.com and entered into a five-year agreement with the tech giant's cloud unit, which includes supplying custom AI products. Revenue in Marvell's data center segment grew 98% to $1.10 billion in the third quarter from a year ago. Its total quarterly revenue was $1.52 billion, beating estimates of $1.46 billion. The company expects its AI revenue to triple to more than $1.5 billion this year and hit $2.5 billion for the next fiscal year, CEO Matt Murphy had said at a company event in April. Revenue derived from custom AI chips alone could be between $2.5 billion and $3 billion in 2025 for Marvell, with optical equipment adding another $1.5 billion to $2 billion to AI revenue, Jefferies analysts had said in a note in October. On the other hand, customers in the company's other end-markets such as wireless carriers have been working to drive down chip inventory after excessive buying during the pandemic resulted in a supply glut. Marvell forecast an adjusted gross margin of 60% for the fourth quarter, compared with estimates of 61%. A significant share of Marvell's revenue is now derived from custom AI chips as AI-linked demand rises. The company's custom chips typically carry lower margins than its off-the-shelf products, known as merchant products. Marvell's enterprise networking segment posted a 44% fall to $150.9 million in revenue, while that of the company's carrier infrastructure unit declined 73% to $84.7 million. The company recorded adjusted earnings of 43 cents per share in the third quarter, compared with estimates of 41 cents.

What's Going On With Marvell Technology Stock Wednesday? - Marvell Tech (NASDAQ:MRVL)

Marvell releases 2025 fiscal-year third-quarter earnings including, adjusted earnings per share of 43 cents. Marvell Technology, Inc. MRVL shares are trading higher on Wednesday after the company reported better-than-expected 2025 fiscal-year third-quarter earnings and issued fourth-quarter guidance above estimates on Tuesday after the bell. The Details: Marvell shares traded about 9% higher on late Tuesday following the release of the earnings report. In the earnings report, the company reported adjusted earnings per share of 43 cents, beating analyst estimates of 41 cents. In addition, the company reported sales of $1.52 billion, representing a 7% year-over-year growth, and beating analyst estimates of $1.46 billion. Furthermore, the company reported a gross margin of 23% and cash flow from operations of $536.3 million. Marvell also issued guidance for the 2025 fourth quarter. The company sees revenue of $1.80 billion, plus or minus 5%, versus analyst estimates of $1.65 billion. Additionally, Marvell sees earnings per share between 54 cents and 64 cents versus analyst estimates of 52 cents. "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," said Matt Murphy, Marvell's Chairman and CEO. "The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products. We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026." Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments. Barclays analyst Blayne Curtis maintained an Overweight rating on Marvell and raised the price target from $85 to $115. Needham analyst Quinn Bolton maintained a Buy rating on Marvell and raised the price target from $95 to $120. Benchmark analyst Cody Acree reiterated a Buy rating on Marvell Tech and raised the price target from $115 to $135. Rosenblatt analyst Hans Mosesmann maintained a Buy rating on Marvell and raised the price target from $120 to $140. B of A Securities analyst Vivek Arya maintained a Buy rating on Marvell and raised the price target from $108 to $125. See Also: Pet Supplies Retailer Chewy's Q3 Performance Builds On Q2 Momentum, Raises Annual Outlook MRVL Price Action: At the time of publication, Marvell stock is trading 22.6% higher at $117.73, according to data from Benzinga Pro. Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Marvell tops quarterly expectations thanks to strong ASIC, interconnect demand - SiliconANGLE

Marvell tops quarterly expectations thanks to strong ASIC, interconnect demand Marvell Technology Inc. today posted quarterly financial results and guidance that handily topped the consensus analyst estimate. Shares of the chipmaker rose more than 8% in after-hours trading. Marvell supplies semiconductors for data centers, carrier infrastructure and cars. It sells specialized processors optimized for tasks such as managing encryption keys. The company also sells other products, including networking modules that make it possible to transmit data as light over fiber-optic cables. Marvell generated adjusted earnings of $0.43 per share in its fiscal third quarter ended Nov. 2. Analysts were expecting $0.41 per share. The company's top line likewise exceeded the consensus estimate, growing 7% year-over-year to $1.52 billion. Marvell attributed its better-than-expected sales primarily to strong demand across two product categories: custom artificial intelligence chips and interconnects. Marvell has a business unit dedicated to making ASICs, or application-specific integrated circuits. Those are custom chips designed from the ground up for a specific customer's requirements. Marvell has designed more than 2,000 custom chips since launching its ASIC business 25 years ago. The company can adapt its processor designs to a variety of manufacturing processes depending on a customer's requirements. That includes three-nanometer technology, which represents the current cutting edge of semiconductor production. Meanwhile, a partnership with Arm Holdings plc enables Marvell to incorporate the British chip designer's core blueprints into its ASICs. Marvell also brings its own intellectual property to chip projects. The company has developed an interconnect that can move data between the silicon dies in a chip at speeds of up to 240 terabits per second. Marvell also offers SerDes modules, which turn data into a form that can be moved between dies, and various other supporting components. The other major contributor to the company's sales growth last quarter was its interconnect business. The unit makes chips that make it possible to move data between a server's different components, as well as from one server to another. Marvell debuted its newest interconnect product, Ara, a few hours before releasing today's earnings report. The device is designed to coordinate the process of sending data over optical networks. Marvell is promising top speeds of 1.6 terabits per second with 20% lower power consumption than earlier products. The company expects its sales momentum to accelerate this quarter. Marvell is forecasting revenue of $1.8 billion with a 5% margin of error, which would represent year-over-year growth of 28%. Analysts were expecting $1.646 billion. The company's adjusted earnings forecast of $0.59 per share likewise topped the consensus estimate. "We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026," said Marvell Chief Executive Officer Matt Murphy.

Marvell Rallies After Demand for AI Computing Bolsters Outlook

Marvell Technology Inc. jumped in late trading after the company delivered better-than-expected results and an upbeat earnings forecast, citing demand for artificial intelligence computing. Third-quarter profit was 43 cents a share, excluding some items, the company said in a statement Tuesday. That beat the 41-cent average estimate of analysts. Marvell expects earnings on that basis of as much as 64 cents in the current period, well ahead of the 52-cent projection.

These Analysts Increase Their Forecasts On Marvell Technology After Upbeat Results - Marvell Tech (NASDAQ:MRVL)

Marvell Technology Inc. MRVL reported better-than-expected third-quarter financial results and issued fourth-quarter guidance above estimates on Tuesday. Marvell Technology reported quarterly earnings of 43 cents per share, which beat the analyst consensus estimate of 41 cents. Quarterly revenue came in at $1.52 billion, which beat the consensus estimate of $1.46 billion and is an increase over sales of $1.42 billion from the same period last year. "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," said Matt Murphy, Marvell's CEO. Marvell sees fourth-quarter earnings of 59 cents per share, plus or minus five cents, versus the 52-cent estimate. The company expects fourth-quarter revenue of $1.8 billion, plus or minus 5%, versus the $1.65 billion estimate. Marvell Technology shares fell 1% to close at $95.91 on Tuesday. These analysts made changes to their price targets on Marvell Technology following earnings announcement. Barclays analyst Blayne Curtis maintained Marvell Tech with an Overweight and raised the price target from $85 to $115. Needham analyst Quinn Bolton maintained the stock with a Buy and raised the price target from $95 to $120. Benchmark analyst Cody Acree reiterated Marvell Tech with a Buy and raised the price target from $115 to $135. Rosenblatt analyst Hans Mosesmann maintained the stock with a Buy and boosted the price target from $120 to $140. B of A Securities analyst Vivek Arya maintained Marvell Tech with a Buy and raised the price target from $108 to $125. Evercore ISI Group analyst Mark Lipacis maintained Marvell Tech with an Outperform and raised the price target from $122 to $127. Morgan Stanley analyst Joseph Moore maintained Marvell Tech with an Equal-Weight and raised the price target from $82 to $102. Stifel analyst Tore Svanberg reiterated Marvell Tech with a Buy and raised the price target from $114 to $125. Susquehanna analyst Christopher Rolland maintained Marvell Tech with a Positive and raised the price target from $110 to $125. Considering buying MRVL stock? Here's what analysts think: Read This Next: Jim Cramer Prefers FedEx Over This Delivery Giant That 'Screwed Up A Lot Of Holiday Seasons' MRVLMarvell Technology Inc$108.3513.0%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Marvell Technology Price Levels to Watch as Stock Soars After Strong Earnings

Investors should monitor important support levels on Marvell's chart around $95, $84 and $76. Marvell Technology (MRVL) jumped in premarket trading Wednesday after the chipmaker posted strong quarterly results and issued a rosy outlook amid robust demand for its custom AI chips. The company guided fourth-quarter revenue of $1.80 billion, plus or minus 5%, handily surpassing the consensus forecast of $1.65 billion. Earlier this year, the chipmaker said it expects AI network and custom processor chip sales to reach $2.5 billion by fiscal 2026, a forecast CEO Matthew Murphy said on Tuesday's earnings call that the company was overshooting. Marvell shares were up more than 13% at around $109 in recent premarket trading. Through Tuesday's close the stock had gained nearly 60% since the start of the year, boosted for insatiable demand for advanced chips that can power the complex processing requirements of generative AI. Below, we break down the technicals on Marvell's chart and point out important price levels worth watching out for. Investors can forecast an overhead target using a bars pattern, a technique that analyzes prior price bars on the chart to predict future moves. To apply the tool to Marvell's chart, we take the price bars from the stock's trending move between October and November and reposition them from the ascending triangle's lower trendline. This predicts an overhead target of around $120, about 25% above Tuesday's closing price. We selected this prior trend as it began from the lower trendline of an earlier ascending triangle on the chart, similar to how the current move higher has started. The first lower level to monitor sits around $95, an area on the chart that could provide support upon a pullback to the ascending triangle's upper trendline. Selling below this level could see the shares fall to the $84 level. Investors may seek buying opportunities in this region near the upward sloping 50-day moving average and a period of consolidation in late October. Finally, a more bearish move opens the door for a retest of lower support near $76. This area on the chart would likely attract buying interest around the earlier ascending triangle's top trendline, which also sits in close proximity to several prominent peaks that have formed on the chart this year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.