Updated May 26, 2023 at 10:17am EDT
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Forget Nvidia. Another Silicon Valley chipmaker fueling analyst fanfare this week is Marvell Technologies. The company’s shares surged on Friday after the company’s CEO told investors that revenues from its artificial intelligence division would grow fourfold over the next few years.
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Marvell makes the software and hardware that power a wide variety of applications, including the chips that power cloud computing, self-driving cars, and most notably, generative artificial intelligence.
Marvel shares surged more than 25% in early Friday trading after quarterly earnings and sales edged above analyst consensus expectations. This was largely driven by expectations of how the company would benefit from the AI boom.
Marvel’s CEO Matt Murphy said on the post-earnings call that the company’s artificial intelligence unit’s revenue, which was $200 million last year, will “at least double” this year, and by 2024. He said he expects the number to double.
That equates to nearly $1 billion in sales, or nearly 20% of the company’s total revenue last year.
Rosenblatt analyst Hans Mosesmann said in a note to clients on Thursday that he set a $100 price target on Marvel stock, saying that it could trade Marvel stock alongside Nvidia thanks to “new momentum in AI.” Declared that it will be selected as the top priority stock.
That would set a new record for the stock, surpassing the 2021 high of $91, a dramatic 300% rally from January’s mid-$30s level.
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According to Barclays analyst Blaine Curtis, investors should think of Marvel as “a safer way to be exposed to the AI wave,” and Marvel is “fueling the fire” with bullish forecasts for AI-powered revenue growth. was poured.” Curtis set a less-than-ambitious price target for Marvel stock at $55, but his buy rating on Friday was actually below the stock’s $62.
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Founded in 1995 by husband and wife Weili Dai and Sehat Sutjaja, Marvel went public five years later amid the tech boom, amassing a valuation of nearly $20 billion shortly after going public on the Nasdaq, but its share price has fallen. The crash quickly dropped it to about $1 billion. The company, valued at $52 billion as of Friday, about 5% of that of rival Nvidia, is up 165% year-to-date thanks to AI-powered optimism. Dai and Suthja are each worth $1.2 billion. forbes However, the couple was banned from Marvel in 2016 on fraud charges.
References
Bigger than Amazon NVIDIA Stock Soars After ‘Cosmological’ Earnings Forecast (forbes)
Stocks Soar Amid AI Chip Boom, Billionaire Behind Nvidia Makes $6.5 Billion In One Day (forbes)
Nvidia’s market cap nears $1 trillion – closes in on other companies (forbes)
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