Matt Murphy, CEO of Marvell Technology
Scott Millin | cnbc
shares of marvel technology A significant overnight rally continued on Friday, surging nearly 32% on the back of quarterly earnings results that hit the top and bottom lines.
On Thursday, the chipmaker posted 31 cents in adjusted earnings per share for the first quarter, exceeding Refinitiv consensus estimates of 29 cents per share. Revenue for the period came in at $1.32 billion, which was above the analyst consensus of $1.3 billion.
Marvell shares are now trading at post-April 2022 levels.
On an analyst conference call, Marvell CEO Matthew Murphy said the company has begun to re-evaluate how it views the “tremendous” business potential of AI.
“In the past, we thought of AI as one of many applications within the cloud, but its importance and therefore opportunity has grown dramatically,” Murphy said.
Analysts at Citi said in a note to investors that the company has a huge opportunity to grow its AI-driven revenue. Citi raised its price target from $58 to $61 and maintained its buy rating.
“In FY2023, MRVL anticipates its AI revenue to be ~$200M, representing a strong growth from FY22. The company expects AI sales to reach ~$400M+ in FY24 before doubling in FY25 ,” said Atif Malik of Citi.
Several semiconductor firms experienced a lift from Nvidia’s blowout earnings report on Wednesday. Nvidia’s market capitalization now sits near $1 trillion.
— CNBC’s Michael Bloom and Chris Hayes contributed to this report.