MRVL Stock: Marvell Technology Calls AI Key Growth Driver

Chipmaker Marvell Technology (MRVL) late Thursday edged above Wall Street’s targets for its fiscal first quarter and with its outlook. But MRVL stock surged in extended trading after the company called out artificial intelligence as a major growth driver.




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The Santa Clara, Calif.-based company earned an adjusted 31 cents a share on sales of $1.32 billion for the period ended April 29. Analysts polled by FactSet had expected earnings of 29 cents a share on sales of $1.3 billion. On a year-over-year basis, Marvell earnings fell 40% while sales dropped 9%.

For the current quarter, Marvell forecast adjusted earnings of 32 cents a share on sales of $1.33 billion. That’s based on the midpoint of its outlook. Wall Street had called for earnings of 30 cents a share on sales of $1.31 billion in the fiscal second quarter.

“We are expecting revenue growth to accelerate in the second half of this fiscal year, accompanied by gross and operating margin expansion,” Chief Executive Matt Murphy said in a news release.

MRVL Stock Jumps On AI Outlook

Also, Marvell expects to profit from growing investments in artificial intelligence, Murphy said.

“AI has emerged as a key growth driver for Marvell, which we are enabling with our leading network connectivity products and emerging cloud-optimized silicon platform,” he said.

Murphy added, “While we are still in the early stages of our AI ramp, we are forecasting our AI revenue in fiscal 2024 to at least double from the prior year and continue to grow rapidly in the coming years.”

In after-hours trading on the stock market today, MRVL stock jumped 14.1% to 56.43. During the regular session Thursday, MRVL stock climbed 7.6% to close at 49.47.

MRVL stock has been approaching a buy point of 49.58 out of a cup base, according to IBD MarketSmith charts.

Marvell makes networking and data storage chips used in cloud computing, automotive, communications and other applications.

Marvell stock ranks 10th out of 37 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. MRVL stock has an IBD Composite Rating¬†of 83 out of 99.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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