After the “best” semiconductor earnings conference call, Marvell will be in the “same camp” with AMD and Nvidia

Marvell Technology Inc.’s stock price hit its best trading day in 13 years, after an earnings report led analysts to predict that the chip maker would be among the top ranks of popular semiconductor stocks.

Marvell’s share price MRVL rose 17.7% on Friday, after the company’s third-quarter financial report showed that Marvell had the highest expectations for the most recent quarter, issued an optimistic forecast for the current period, and provided encouraging long-term comments. The stock recorded its biggest one-day percentage gain since December 3, 2008, when it rose 20.4%.

Chief Financial Officer Jean Hu said on Thursday evening’s earnings call that she expects that “demand in our end markets will continue to be strong, and improved supply will drive our revenue growth by more than 30% in fiscal year 2023.” This forecast caused. In response to people’s enthusiasm, Marvell’s first-quarter revenue forecast also implies a growth of more than 60%.

The company’s earnings conference call may be “one of the best (if not the best) semi-conference conference calls I have heard in a long time,” Mizuho office analyst Jordan Klein was talking to Mizuho’s sales business. Writes in a related report. Not its research team. “In fact, this is a game changer for investors. In my opinion, Marvell positions Marvell as the top GROWTH SEMI in CY22,” he continued. He believes that Marvell “will now be in the same camp as Advanced Micro Devices Inc.” AMD rose 0.27%, and Nvidia Corp. NVDA rose -1.85%. He believes that because the company’s growth forecast is gratifying and the bull market may be It is expected that the price of $4 will share the annual profitability within a few years. He stated in the report that the company “has a clear line of sight on the revenue line, because the backlog of design victories has basically locked that growth rate.”


The current consensus of FactSet’s earnings per share is US$1.54 in the current fiscal year and US$2.20 next year. Klein is not alone in comparing Marvell to a hot chip stock. Rosenblatt Securities analyst Hans Mossman wrote: “Marvell just pulled an’Nvidia’ on the street last night to increase the sales growth rate in fiscal year 23 to 30 with a clear tempo and salary increase. % above.” Marvell’s report triggered the upgrade of at least one research analyst: Karl Ackerman of Cowen & Co., who raised his rating on Marvell stock to outperform the market.

Ackerman wrote: “It is hard to say that this is just a watershed, with better results, better guidance, and an ever-expanding design pipeline to support the new F23 guidelines.” Ackerman cheered Marvell’s recent developments. In his view, advances in “portfolio optimization” have made the company more and more competitive. He wrote: “Marvell has transformed from a fast follower to a market leader, providing semi-custom integrated ICs on cutting-edge silicon chips to solve the bandwidth friction problems that exist in today’s networks,” and also raised the target price from $60 to $100. .

The report confirms those who have taken a bullish view of the stock and have now raised their expectations. Evercore ISI analyst C.J. Muse wrote: “Take a step back. We have always emphasized that Marvell is one of the best growth stories in the semifinals. For this reason, they are clearly not disappointing.” He said that Muse now sees “a clear way to achieve a profit extension target of more than US$3.25 in fiscal year 24,” and the market generally believes that earnings per share are US$2.43. “Looking further, we think that the $25 bogey of $4.00 we’ve been discussing may now be conservative-when everything is said (at least), the return may be close to $4.25 or more,” Muse continued, while increasing As a result, his price target was raised from US$72 to US$105, and he maintained an outperform rating.

So far this year, Marvell’s stock price has soared 75%, while Nvidia’s stock price has soared 134%, AMD’s stock price has risen 56%, and the Standard & Poor’s 500 index SPX has risen by 0.31% and 20%.


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