What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) jumped 5.2% in the afternoon session after investors looked past the company's in-line third-quarter revenue to focus on its better-than-expected profits and strong forward guidance. For its third quarter, Marvell reported adjusted earnings of $0.76 per share, beating Wall Street's consensus estimates by 3%. Revenue came in at $2.07 billion, matching expectations and representing a 36.8% increase from the same period last year. Looking ahead, the company provided an optimistic outlook, forecasting fourth-quarter revenue of around $2.2 billion and adjusted earnings per share of $0.79, both of which were ahead of analyst predictions. The positive move came after the stock initially fell following the earnings release, suggesting that investors had digested the report and were now focused on the company's solid profitability and encouraging growth trajectory.
Is now the time to buy Marvell Technology? Access our full analysis report here.
What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 4.9% on the news that several analysts updated their views on the company's stock. Susquehanna analyst Christopher Rolland maintained a Positive rating on Marvell and increased the price target to $100 from $80. Similarly, UBS analyst Timothy Arcuri kept a Buy rating while raising the firm's price target to $110 from $105. Not all analysts were as bullish. HSBC initiated coverage on the stock with a “Hold” rating and an $85 price target. The bank's analyst noted that while Marvell was an “important AI player,” it faced strong competition from rivals like Broadcom. Despite this, some reports highlighted that Marvell's stock continued to be priced reasonably compared to its AI peers and its financial position remained solid.
Marvell Technology is down 13.2% since the beginning of the year, and at $98.56 per share, it is trading 21.8% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $2,165.
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