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What you need to know
- Marvell Technology stocks led Nasdaq-100 shares higher following strong fiscal third-quarter financial results announced after the bell on Tuesday.
- The chipmaker's fourth-quarter revenue forecast came in significantly higher than the analyst consensus estimate.
- Bank of America analyst said that Marvell Technology can expect a 20% – 25% growth in sales over the long term.
Marvell Technology (MRVL), the leading Nasdaq-100 gainer, topped other Nasdaq stocks on Wednesday. The chipmaker announced a forecast for its current quarter that was significantly higher than Wall Street’s expectations.
Visible Alpha, a leading analyst firm, predicted that the company would report fiscal 2025 revenue for the fourth quarter of $1.8 Billion, plus or less 5%. That’s a growth of 26% year-overyear, and over the Visible Alpha consensus figure of $1.65 Billion.
Matt Murphy, the CEO of Chief Executive (CEO), said that the forecast is “driven by our custom AI silicon programs,” Now in mass production, these are the products.
Murphy said that Marvell’s sales of custom processor chips and artificial intelligence network (AI) chip were on pace to reach $2.5billion by fiscal 2026, exceeding its earlier expectation.
Marvell’s shares rose about 23% on Wednesday, and are expected to nearly double in value by 2024.
Analysts see more growth potential
In a Wednesday report, Bank of America analysts maintained that a “buy” Rating and raised their price target from $100 to $125. This is a 6% increase over Marvel’s recent rise to around $118 per share on Wednesday.
The Chipmaker “has transformed into a data center silicon leader,” The analysts stated, “with.” “growth opportunities across cloud data centers, 5G infrastructure, advanced autos, enterprise networking and security markets.”
Analysts at the bank said these growth opportunities would result in a long-term increase of 20% to 25 percent for sales and 25%-30% per-share earnings growth.
The article was updated with the most recent information on share prices.
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