Marvell Technology, Inc. (MRVL) stock experienced a significant surge on Friday, driven by the company’s strong second-quarter earnings report and an optimistic outlook for the upcoming quarter.
Marvell reported earnings per share (EPS) of 30 cents, aligning with analyst expectations. However, the company exceeded revenue projections, generating $1.27 billion in sales compared to the anticipated $1.25 billion. This positive performance was attributed to strong demand for Marvell’s artificial intelligence (AI) products, particularly in electro-optics and custom AI programs.
“Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp,” stated Matt Murphy, Marvell’s Chairman and CEO.
Looking ahead, Marvell projected adjusted EPS of 40 cents, plus or minus $0.05, for the third quarter. The company also anticipates revenue to reach $1.45 billion, plus or minus 5%, during the same period. Murphy expressed confidence in the company’s growth trajectory, noting, “Next quarter, we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates. As a result, for the third quarter of fiscal 2025, we expect all our end markets to grow sequentially, with consolidated revenue forecasted to grow 14% sequentially at the mid-point, accompanied by a significant increase in operating leverage.”
Following the earnings release, multiple analysts adjusted their price targets for MRVL stock. Morgan Stanley lowered its price target from $77 to $82, while maintaining an Equal Weight rating. Roth MKM kept a Buy rating and maintained its $95 price target. Evercore ISI Group raised its price target from $91 to $98, while affirming an Outperform rating. Stifel increased its price target from $90 to $95 and reiterated a Buy rating. Goldman Sachs raised its price target from $77 to $87, also reiterating a Buy rating. Lastly, Piper Sandler maintained an Overweight rating and a $100 price target.
At the time of writing, Marvell Technology shares were trading 9.48% higher at $76.46. The strong earnings report and optimistic outlook have clearly boosted investor confidence in the company’s future prospects.
