- Shares of Marvell Technologies were up 25% Friday morning on a top- and bottom-line beat.
- The chipmaker posted $1.32 billion in first-quarter revenue and 31 cents of adjusted earnings per share.
- Marvell CEO Matthew Murphy said AI presented a “huge” opportunity for the company.
Matt Murphy, CEO, Marvell Technology
Scott Mill | CNBC
Shares of Marvell Technology continued a significant overnight rally Friday morning, rising about 25% from quarterly results that beat the top and bottom lines.
On Thursday, the chipmaker posted 31 cents of adjusted earnings per share for the first quarter, surpassing Refinitiv’s consensus estimate of 29 cents per share. Revenue came in at $1.32 billion for the period, beating the analyst consensus of $1.3 billion.
Marvell shares are now trading at levels not seen since April 2022.
During a conference call with analysts, Marvell CEO Matthew Murphy said the company had begun to reassess how it viewed AI’s “massive” business potential.
“In the past, we viewed AI as one of many applications in the cloud, but its importance and opportunity have grown tremendously,” said Murphy.
Citi analysts said in a note to investors that the company has a strong opportunity to grow its AI-powered revenue. Citi raised its price target from $58 to $61 and maintained its buy rating.
“In FY2023, MRVL estimated its AI revenue at ~$200M, representing a sharp increase from FY22. The company expects AI sales to reach ~$400M+ in FY24 before doubling in FY25,” said Atif Malik of Citi.
Many semiconductor firms experienced an increase in Nvidia’s earnings report on Wednesday. Nvidia’s market cap is now close to $1 trillion.
CNBC’s Michael Bloom and Chris Hayes contributed to this report.