Marvell Technology surges on upbeat Q4 forecast, propelling broader chip sector

Monolithic Power Systems

04/12/2024 16:46

(Updates)
    ** Shares of chipmaker Marvell Technology  MRVL.O  soar
21.3% to $116.35
    ** Stock touch an all-time high in day trading
    ** Co on Tuesday forecast Q4 rev. of $1.8 bln, plus or minus
5%, vs estimates of $1.65 bln - data compiled by LSEG 
    ** Posted Q3 rev. of $1.52 bln, beating estimates of $1.46
bln, on strong demand for its custom AI chips; data center
revenue doubled to $1.10 bln
    ** Q3 adjusted EPS of 43 cents topped estimates of 41 cents
    ** At least 18 brokerages raise PT on the stock 
    ** "Marvell is capitalizing on a massive artificial
intelligence chip opportunity with a burgeoning custom
accelerator portfolio and a dominant optical chip position"
-Morningstar
    ** Other chip stocks also rise tracking MRVL's gains 
    ** NVIDIA  NVDA.O  up 1.9%, Broadcom  AVGO.O  rises 0.6%,
Monolithic Power Systems  MPWR.O  gains 1%
    ** Amkor Technology  AMKR.O  gains 1%, while GlobalFoundries
 GFS.O  up 1.12%
    ** Overall Philadelphia SE semiconductor index  .SOX  rises
1.6% 
    ** Including session's move, MRVL up 93.5% YTD vs
Philadelphia SE semiconductor index's gains of 22.6%

 (Reporting by Kritika Lamba and Ragini Mathur in Bengaluru)
 ((Kritika.Lamba@thomsonreuters.com))