Marvell Technology Stock Soars on AI Potential and Strong Q2 Performance

Marvell stock maintains Overweight rating with steady price target By Investing.com

On Friday, an analyst from KeyBanc maintained a positive outlook on Marvell (NASDAQ:MRVL) Technology, Inc. (NASDAQ:MRVL), reiterating an Overweight rating and a $95.00 price target for the company's shares. The endorsement follows Marvell's announcement of second-quarter results and third-quarter guidance, which surpassed expectations, particularly due to strong performance in the Data Center sector. Marvell's recent financial outcomes were bolstered by growth in optical networking and the ramp-up of AI custom silicon projects with major clients such as Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) Web Services. The company also observed that the Carrier and Enterprise Networking segments, which had been lagging, have reached a turning point and are anticipated to expand in the third quarter. The management team at Marvell expressed confidence in exceeding the firm's artificial intelligence revenue targets for fiscal years 2025 and 2026, set for January of those years, at $1.5 billion and $2.5 billion respectively. Gross margins are projected to hold steady at around 61%, as lower margins from AI custom silicon are expected to be balanced by a resurgence in the core merchant business. KeyBanc's analyst highlighted the encouraging signs from Marvell's performance, noting adjustments to estimates based on these recent developments. The firm's continued Overweight rating indicates a belief in Marvell's potential for growth and profitability. In other recent news, Marvell Technology Group Ltd . reported robust Q2 fiscal year 2025 financial performance, with revenue surpassing expectations at $1.27 billion, primarily driven by the data center end market, which reported record revenue of $881 million. The company also managed to reduce inventory by nearly 20%, generating $306 million in cash from operations. Analysts from Rosenblatt introduced a fiscal year 2027 Non-GAAP earnings estimate of $3.50 per share for Marvell, reflecting confidence in the company's growth trajectory. Multiple firms, including TD Cowen, Stifel, and Piper Sandler, have maintained positive ratings on Marvell, with raised price targets reflecting the company's strong performance and future prospects. Marvell's plans to increase stock repurchases in the third quarter and anticipated sequential growth across all end markets further underscore the company's recent developments. The company's AI application-specific integrated circuit (ASIC) business is expected to leverage robust investments in artificial intelligence (AI), further bolstering Marvell's growth prospects. Marvell Technology's recent achievements and the positive outlook from analysts are reflected in some key metrics and expectations. According to InvestingPro data, Marvell boasts a substantial market capitalization of $60.45 billion, highlighting its significant presence in the industry. Despite a challenging past twelve months, with a negative revenue growth of 7.72% and an operating income margin of -8.65%, analysts have revised their earnings upwards for the upcoming period, signaling potential recovery and growth. InvestingPro Tips indicate that Marvell is expected to see net income growth this year, and the company has a track record of maintaining dividend payments for 13 consecutive years, which could be a sign of financial stability and shareholder commitment. Additionally, Marvell operates with a moderate level of debt and liquid assets that exceed short-term obligations, providing a cushion for operational flexibility. For investors looking to delve deeper into Marvell's financial health and future prospects, InvestingPro offers further insights. Currently, there are 18 additional InvestingPro Tips available, which could provide more nuanced guidance for those considering Marvell as part of their investment portfolio.

Rosenblatt boosts Marvell stock PT by $20, sees accelerated progress toward AI goals By Investing.com

On Friday, Rosenblatt Securities increased its price target on Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL), a major player in the semiconductor industry, from $100 to $120, while maintaining a Buy rating on the stock. The firm's decision comes in the wake of Marvell's recent financial results, which showed a modest beat for the July quarter and a significantly better-than-expected outlook for the October quarter. The improved financial outlook for Marvell is attributed to strong momentum in artificial intelligence (AI) and recoveries in enterprise networking and carrier businesses. This positive trend has led the company to raise its AI sales targets for fiscal years 2025 and 2026, with expectations now set at $1.5 billion and $2.5 billion, respectively. The heightened sales targets are supported by robust trends in electro-optics technologies and custom ASICs, which are increasingly in demand due to faster innovation cycles among customers. Marvell's management has expressed confidence in the company's AI ASIC engagements, describing them as "multi-generational" due to the high switching costs and the limited full platform support capabilities offered by smaller competitors in Asia. The company's earlier goal of capturing 20% of the AI market share in a total addressable market (TAM) of $40 billion by 2028 seems to be progressing ahead of schedule, indicating a strong position in the market. In light of these developments, Rosenblatt has also introduced a fiscal year 2027 Non-GAAP earnings estimate of $3.50 per share for Marvell. The new price target of $120 reflects a mid-30s price-to-earnings (P/E) multiple, which is in line with the firm's historical valuation range for high-quality AI companies. The updated valuation underscores the firm's confidence in Marvell's growth trajectory and its role in the AI sector. In other recent news, Marvell Technology Group Ltd . exceeded Q2 expectations with a strong financial performance, reporting revenue figures of $1.27 billion primarily driven by a record revenue of $881 million from the data center end market. The company also showcased a GAAP gross margin of 46.2% and a non-GAAP gross margin of 61.9% in Q2, and managed to reduce inventory by nearly 20% YoY, generating $306 million in cash from operations. Looking forward, the third-quarter revenue forecast is approximately $1.45 billion, with a GAAP gross margin of 47.2% and a non-GAAP gross margin of 61%. Marvell Technology is expected to capitalize on robust investments in artificial intelligence (AI) by scaling its AI application-specific integrated circuit (ASIC) business. Analysts from Citi maintained a Buy rating for the company, predicting that Marvell's CEO, Matt Murphy, will present an optimistic view on the company's AI growth at the upcoming Citi Technology Conference. The company also anticipates significant sequential growth across all end markets in the third quarter and is confident in exceeding its full-year AI revenue target. Another important development is the company's plan to increase stock repurchases in the third quarter. Furthermore, Marvell is well-positioned in the data center switching market with their 51.2T silicon and maintains a high market share in the DSP and optics market.

Marvell shares maintain buy rating on AI growth By Investing.com

Citi maintained its Buy rating and $91.00 price target for Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL), a semiconductor company. The firm's positive outlook is based on Marvell's performance above consensus for the calendar year 2025 earnings per share (EPS) following July-quarter results. Marvell is expected to capitalize on the robust investments in artificial intelligence (AI) by scaling its AI application-specific integrated circuit (ASIC) business. The company has four AI ASIC projects in the pipeline, with two currently ramping up, one anticipated to ramp in calendar year 2025, and another in 2026. Citi also announced a positive catalyst watch ahead of the upcoming Citi Technology Conference. During the event, which is scheduled for next week, Citi will host a fireside chat with Marvell's CEO, Matt Murphy. Analysts predict that Murphy will present an optimistic view on the company's AI growth, potentially exceeding previously set AI sales targets for 2024 and 2025. Additionally, a recovery is expected across all non-AI end markets in the second half of 2024. The firm's analysis indicates that Marvell's stock typically performs well when all its end markets are moving in a positive direction. This trend is likely to continue, bolstered by the company's strategic initiatives in the AI sector and the anticipated market recovery. Marvell Technology Group Ltd . showcased a strong performance in the second quarter of fiscal year 2025, with revenue surpassing expectations at $1.27 billion. This robust growth was primarily driven by the data center end market, which reported a record revenue of $881 million, reflecting a noteworthy year-over-year increase. The company's future appears promising with an expected 14% sequential growth in consolidated revenue for the third quarter, largely propelled by the data center AI market. Marvell Technology also reported a GAAP gross margin of 46.2% and a non-GAAP gross margin of 61.9% in Q2. The company managed to reduce inventory by nearly 20% YoY and generated $306 million in cash from operations. Looking forward, the third-quarter revenue forecast is approximately $1.45 billion, with a GAAP gross margin of 47.2% and a non-GAAP gross margin of 61%. In terms of future developments, Marvell Technology anticipates significant sequential growth across all end markets in the third quarter and is confident in exceeding its full-year AI revenue target. The company also has plans to increase stock repurchases in the third quarter.

Marvell Technology Posts First Beat-And-Raise In 5 Quarters: Analysts Focus On 'Solid AI Story' - Marvell Tech (NASDAQ:MRVL)

The company is poised to exceed its AI revenue targets for FY25 and FY26. Marvell Technology Inc MRVL shares climbed in early trading on Friday, after the company reported upbeat second-quarter sales. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Goldman Sachs On Marvell Technology Analyst Toshiya Hari maintained a Buy rating while lifting the price target from $77 to $87. Marvell Technology reported its first beat-and-raise in five quarters, with fiscal second-quarter revenue at $1.27 billion, representing 10% sequential growth but a 5% year-on-year decline, Hari said in a note. The figure came in 2% higher than consensus, he added. Management guided to fiscal third-quarter revenue of $1.45 billion and expressed confidence in "significantly exceeding its FY2025/26 AI revenue targets of $1.5bn/$2.5bn, respectively," the analyst stated. "Supported by strong bookings and a robust backlog, we believe Marvell's forward visibility has improved in both Custom Compute and Electro-Optics," he further wrote. Stifel On Marvell Technology Analyst Tore Svanberg reiterated a Buy rating while raising the price target from $90 to $95. Marvell Technology reported its July quarter results above midpoint, "as DC/AI revenue continues to accelerate," Svanberg said. The company raised its October outlook, "driven primarily by DC/AI, in addition to sequential recoveries in Carrier Infrastructure and Enterprise Networking," he added. The analyst stated Marvell is on track to surpass its previous AI revenue guidance for fiscal 2025 and 2026 of $1.5 billion and $2.5 billion, respectively. "Once again, we remain impressed with MRVL's execution within the DC/AI space, even as the company's other end markets resume sequential growth," he further wrote. Check out other analyst stock ratings. JPMorgan On Marvell Technology Analyst Harlan Sur reiterated an Overweight rating and price target of $90. "Marvell's AI design win pipeline is starting to inflect meaningfully higher in the 2H," Sur said in a note. The company could ship $575 million to $600 million in AI ASICs this year and exit the year with a quarterly run rate of $300 million, he added. "Just as important, 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," the analyst wrote. Marvell continues to execute on its long-term growth initiatives and is likely to generate "above-industry growth mid-/longer term," he further stated. Piper Sandler On Marvell Technology Analyst Harsh Kumar reaffirmed an Overweight rating and price target of $100. Marvell reported "solid" quarterly results, with all of its end markets "set to recover in the upcoming October quarter," Kumar said. "These include markets that have been declining or stagnant for some time, including carrier, storage, and enterprise," he added. The company seems to have "hit an inflection with its custom silicon business which is set for significant growth sequentially in October," the analyst wrote. "While custom silicon inherently has lower gross margin but higher operating margin, management feels like a base of 61% plus margin can be maintained going forward given concurrent growth in the merchant business with higher gross margins," he further wrote. Cantor Fitzgerald On Marvell Technology Analyst C.J. Muse reiterated an Overweight rating and price target of $85. "Following fits and starts over the last year, Marvell finally delivered the goods on its solid AI story overnight," Muse wrote in a note. The company posted a revenue beat, "driven by Data Center outperformance," he added. Marvell's guidance was "solidly above consensus, led by AI and Data Center, which the company expects to grow in the high-teens percentage sequentially," the analyst said. "Overall, we see this report as an important inflection for Marvell, with likely upside to the ever-important AI revenues into CY25 and beyond, coupled with growing tailwinds from the more cyclical businesses," he further stated. MRVL Price Action: Shares of Marvell Technology had risen by 7.03% to $74.75 at the time of publication on Friday. Read Next: * Dollar Surges As Doubts Over Aggressive Rate Cuts Grow, Wall Street Climbs On Consumer Strength: 7 ETFs React To Fed's Inflation Data Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

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

The company issued guidance for the 2025 fiscal year third quarter. Marvell Technology, Inc. MRVL shares are moving higher on Friday after the company reported better-than-expected MRVL with a Overweight and maintains $100 price target.">second quarter earnings. The Details: The company reported earnings after the market closed on Thursday. Marvell reported EPS of 30 cents, inline with analyst estimates, and sales of $1.27 billion, beating estimates of $1.25 billion. "Marvell's second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp," said Matt Murphy, Marvell's Chairman and CEO. Third Quarter Guidance: Marvell sees adjusted EPS of 40 cents, plus or minus $0.05. Also, Marvell sees revenue at $1.45 billion, plus or minus 5%. Murphy also stated, "Next quarter, we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates. As a result, for the third quarter of fiscal 2025, we expect all our end markets to grow sequentially, with consolidated revenue forecasted to grow 14% sequentially at the mid-point, accompanied by a significant increase in operating leverage." Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments. Morgan Stanley analyst Joseph Moore maintained an Equal Weight rating on Marvell and lowered the price target from $77 to $82. Roth MKM analyst Suji Desilva maintained a Buy rating on Marvell and maintained a $95 price target. Evercore ISI Group analyst Mark Lipacis maintained a Outperform rating on Marvell and raised the price target from $91 to $98. Stifel analyst Tore Svanberg reiterated a Buy rating on Marvell and raised the price target from $90 to $95. Goldman Sachs analyst Toshiya Hari maintained a Buy rating on Marvell and raised the price target from $77 to $87. Piper Sandler analyst Harsh Kumar reiterated an Overweight rating on Marvell and maintained a $100 price target. Related Link: Intel Weighs Major Business Split, Factory Delays Amid Strategic Review: Report MRVL Price Action: Marvell Technology stock is trading 9.48% higher at $76.46 at the time of writing per data from Benzinga Pro. Image: Courtesy of Marvell Market News and Data brought to you by Benzinga APIs

Marvell Technology Stock Surges on Better-Than-Expected Sales, Boosted by AI Demand

Marvell Technology shares surged nearly 5% in early trading Friday and have gained over one-fifth of their value since the start of the year. Marvell Technology (MRVL) shares surged nearly 5% in early trading Friday after the maker of networking circuits posted better-than-expected quarterly sales, driven by demand for equipment to support artificial intelligence (AI). The company reported fiscal 2025 second-quarter revenue fell 5.1% from a year ago to $1.27 billion, slightly above estimates compiled by Visible Alpha. Marvell's adjusted loss of 30 cents per share was in line with forecasts. CEO Matt Murphy said the results were driven by AI demand, as the company saw "strong growth from our electro-optics products and our custom AI programs began to ramp." Murphy added that in the current quarter, "we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates." Marvell said it anticipates third-quarter diluted earnings per share of 40 cents, plus or minus 5 cents, and revenue of $1.45 billion, plus or minus $5 billion. That compares to consensus estimates of 38 cents and $1.40 billion, respectively. Marvell Technology shares were up close to 5% at $73.26 in early trading Friday and have gained over one-fifth of their value since the start of the year.

Strong AI chip demand and improved guidance boost Marvell's stock after-hours - SiliconANGLE

Strong AI chip demand and improved guidance boost Marvell's stock after-hours After a string of less-than-impressive earnings results that weighed heavily on its stock, Marvell Technology Inc. is heading in the opposite direction today. The company delivered earnings in-line with expectations and revenue that beat Wall Street's targets, then offered an upbeat outlook for the current quarter, citing ongoing momentum with its artificial intelligence chips. Marvell's stock subsequently gained more than 7% in the extended trading session, building on a smaller gain of just over 2% during the regular trading period. The company reported second quarter earnings before certain costs such as stock compensation of 30 cents per share, which was bang on with Wall Street analysts' consensus estimates. Its revenue fell 5% from a year ago to $1.27 billion, but that was still better than most had feared, with analysts targeting sales of $1.25 billion. All told, the company delivered a net loss of $193 million, down from a wider loss of $216 million in the year-ago period. Marvell Chairman and Chief Executive Matt Murphy (pictured) told analysts that the company's revenue grew 10% on a sequential basis due to strong demand for AI, coming in above its own guidance range. "We saw strong growth from our electro-optics products and our custom AI programs began to ramp up," he said. The company is a major player in the world of data storage, networking and automotive chip manufacturing. Its primary customers are cloud computing providers, telecommunications firms and car manufacturers. Although it's much smaller than rival chipmakers such as Intel Corp. and Nvidia Corp., Marvell is well-established in the industry and is benefiting from the high demand for silicon that can power AI workloads. Marvell said its data center revenue increased 92% year-over-year to $881 million, well ahead of the Street's forecast of $865 million. The growth was driven primarily by stronger demand for AI chips, aligning with broader industry expectations for AI-driven growth. The company's other business segments, enterprise networking and carrier infrastructure, both declined on a year-over-year basis. Marvell attributed this to inventory corrections and lower demand. On the other hand, it saw a sharp sequential increase in its consumer revenue, and a more modest sequential improvement in the carrier infrastructure business. Looking to the third quarter, Marvell said it expects revenue to reach $1.45 billion at the midpoint of its guidance range, ahead of the analysts' call for $1.41 billion. It's also looking for earnings of 40 cents per share, versus the Street's target of 38 cents. "Next quarter, we expect our combined enterprise networking and carrier end markets to return to growth, while our data-center end market growth accelerates," Murphy said. "As a result, for the third quarter of fiscal 2025, we expect all our end markets to grow sequentially, with consolidated revenue forecasted to grow 14% sequentially at the midpoint, accompanied by a significant increase in operating leverage."

Marvell capitalizes on AI and rising data center demand

Their products are being used by some of the biggest names in the Magnificent Seven, including its 1.6T optical DSP into Nvidia's (NVDA) Blackwell GPU platform, as well as its AI ASICS in Amazon's (AMZN) Trainium 2 AI processor and Google's (GOOG)(GOOGL) Axion CPU processor. "In fact, we estimate that Marvell is going to ship $575-$600M in AI ASICs this year (versus company prior view of $500M+) and exit the year with a quarterly run-rate of $300M (versus mgmt prior view of $200M+)," said J.P. Morgan analyst Harlan Sur, in a Friday note. Marvell's second quarter data center sales increased 92% from the same quarter one year prior. "Just as important, 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," Sur added. J.P. Morgan rates Marvell at Overweight with a hefty $90 price target. Evercore ISI rates Marvell at Outperform and increased its price target to $98 from $91 after reviewing its second quarter fiscal 2025 results and outlook.