[ad_1]
Matt Murphy, CEO, Marvell Technology
Scott Mill | CNBC
shares Marvell technology It continued to rally overnight Friday, up about 32% on the back of quarterly earnings results that beat top and bottom earnings.
On Thursday, the chip maker posted 31 cents in adjusted earnings per share for the first quarter, more than Refinitiv’s estimate of 29 cents per share. Revenue was $1.32 billion for the period, more than the $1.3 billion analyst consensus.
Marvell shares are now trading at levels not seen since April 2022.
On a conference call with analysts, Marvell CEO Matthew Murphy said the company had begun to reassess how it viewed the “enormous” commercial potential of AI.
“In the past, we considered AI as one of many applications within the cloud, but its importance and therefore opportunity has increased exponentially,” Murphy said.
Citi analysts said in a note to investors that the company has a great opportunity to grow its AI-driven revenue stream. Citi raised its price target from $58 to $61 and maintained the Buy rating.
A memo from Atif Malik of Citi said: “In fiscal year 2023, MRVL estimated AI revenue to be around $200m, which is a solid uptick from FY22. The company expects AI sales to reach $400m+ in FY24 before doubling in fiscal year 25″.
Several semiconductor companies saw an uptick in Wednesday’s earnings report from Nvidia. Nvidia’s market capitalization is now close to $1 trillion.
— CNBC’s Michael Blum and Chris Hayes contributed to this report.
[ad_2]
