Marvell Technology’s stock rose significantly on Wednesday, leading all Nasdaq 100 gainers, after the chipmaker surpassed Wall Street expectations with its fourth-quarter revenue forecast. The company reported a forecast of $1.8 billion for the fiscal 2025 fourth quarter, representing a 26% year-over-year growth and well above the analyst consensus estimate of $1.65 billion.
CEO Matt Murphy attributed this strong performance to the company’s custom AI silicon programs, which are now in volume production. Marvell is on track to exceed its previous expectation that AI network and custom processor chip sales would reach $2.5 billion by fiscal 2026. As a result, shares of Marvell jumped about 23% intraday and have nearly doubled in 2024.
Analysts at Bank of America have maintained a “buy” rating on Marvell and increased their price target to $125, citing the company’s growth potential in data center silicon and other markets such as cloud data centers, 5G infrastructure, advanced autos, enterprise networking, and security. The analysts predict that Marvell could achieve 20% to 25% long-term sales growth and 25% to 30% long-term earnings per share growth.
Overall, Marvell Technology’s strong fiscal third-quarter results and impressive revenue forecast have sparked optimism among investors and analysts alike, with the company poised for significant growth in the coming years.
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