- Shares of Marvell Technologies soared 32% after higher sales and bottom line earnings Friday morning.
- The company posted first quarter sales of $1.32 billion and adjusted earnings per share of 31 cents.
- Marvel CEO Matthew Murphy said AI presents an “enormous” opportunity for the company.
Matt Murphy, CEO of Marvel Technology
Scott Mullin | CNBC
Shares of Marvell Technology continued their big overnight rally on Friday, jumping about 32% after quarterly earnings beat sales and bottom line earnings.
On Thursday, the company posted adjusted first-quarter earnings of 31 cents per share, beating Refinitiv’s consensus forecast of 29 cents per share. Revenue for the same period totaled $1.32 billion, beating analyst consensus of $1.3 billion.
Marvel stock is currently trading at levels not seen since April 2022.
Marvel CEO Matthew Murphy said on an analyst conference call that the company has begun to reassess how it sees AI’s “tremendous” business potential.
“Although AI was traditionally thought of as one of many applications in the cloud, its importance and opportunities have increased dramatically,” Murphy said.
In an investor memo, Citi analysts said the company has a huge opportunity to grow its AI-driven earnings. Citi raised its price target to $61 from $58, maintaining a buy rating.
In a memo, Citi’s Atif Malik said, “MRVL estimates AI revenue to be around $200 million in FY2023, marking a significant increase from FY22. The company expects AI revenue to reach We expect it to reach about $400 million or more in 2020, and then double in 2025.”
Many semiconductor companies experienced a boost after Nvidia’s big earnings report on Wednesday. Nvidia’s market capitalization now stands at nearly $1 trillion.
— CNBC’s Michael Bloom and Chris Hayes contributed to this report.
