Shares of Marvell Technology (MRVL) are up 10% after the chipmaker reported Fiscal third-quarter financial results that topped Wall Street’s consensus forecasts.
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The Silicon Valley-based company reported earnings per share (EPS) for the July through September quarter of $0.43. That surpassed the consensus estimate of $0.41 among analysts who track the company’s progress.
Revenue in Q3 totaled $1.52 billion. That was ahead of the $1.46 billion expected on Wall Street. Sales were up 19% from a year earlier. Management at Marvell Technology attributed the strong results to demand for the microchips that power artificial intelligence (AI) models and applications.
Sales to Amazon
Specifically, management said that most of the third-quarter growth came from sales of new custom AI acceleration chips to e-commerce giant Amazon (AMZN) and other builders of hyperscale data centers that run large AI software models.
For the current fourth quarter, Marvell forecast earnings of $0.59 a share, plus or minus five cents. That was ahead of Wall Street forecasts that call for Q4 earnings of $0.52. The company added that it expects Q4 revenue of $1.80 billion, plus or minus 5%, which is ahead of consensus estimates of $1.65 billion.
MRVL stock has risen 60% so far in 2024.
Is MRVL Stock a Buy?
The stock of Marvell Technology has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buy and one Hold recommendations assigned in the last three months. The average MRVL price target of $105.75 implies 10.26% upside from current levels.
