Marvell Technology, Inc. (MRVL) shares are surging on Friday, joining a broader rally in semiconductor stocks, fueled by Federal Reserve Chair Jerome Powell’s comments on potential interest rate cuts.
Powell’s speech at the annual economic conference in Jackson Hole, Wyoming, signaled a shift in monetary policy, potentially paving the way for rate reductions. “The time has come for policy to adjust,” Powell stated, emphasizing that the timing and pace of future cuts will depend on economic data and risk assessments. He also expressed confidence that inflation will continue to moderate towards the Federal Reserve’s 2% target.
While signaling support for easing monetary policy, Powell acknowledged the need for caution. He expressed concern over a potential slowdown in the job market, attributing the recent rise in unemployment to increased labor supply and slower hiring.
Adding to the bullish sentiment surrounding Marvell, analyst Hans Mosesmann of Rosenblatt Securities maintained a Buy rating on the stock, with a price target of $100.
Investors are also awaiting Marvell’s second-quarter earnings report, scheduled for release on Tuesday after market close. Analysts are expecting earnings per share of 30 cents and revenue of $1.25 billion.
With its strong performance today, Marvell Technology is poised to benefit from a potential shift in monetary policy and continued positive analyst sentiment. Investors will be watching closely for the company’s upcoming earnings release for further insights into its growth prospects.
