Marvell Technology AI Sales To Double: 5 Analysts Take A Look At Q1 Print

Zinger Key Points
  • Marvell Technology refines its AI growth narrative, focusing on optical, followed by cloud custom silicon, one analyst says.
  • The company sees AI revenues doubling in each of the next two years, another analyst adds.

Shares of Marvell Technology Inc MRVL climbed in early trading on Friday, after the company reported upbeat quarterly results.

The report came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Morgan Stanley On Marvell Technology

Analyst Joseph Moore maintained an Equal-Weight rating while raising the price target from $45 to $55.

“Numbers came in better than feared, in line with our estimates around upside in autos and ongoing networking weakness,” Moore wrote in a note. The inventory overhang in enterprise networking could persist through the rest of the year, he added.

Management refined its “AI growth narrative,” focusing on “isolating the elements of their business driven by AI, primarily the higher speed elements of the Inphi optical businesses, and longer-term cloud custom silicon” the analyst stated.

KeyBanc Capital Markets On Marvell Technology

Analyst John Vinh reiterated an Overweight rating while lifting the price target from $60 to $70.

Marvell Technology’s quarterly results were “solid” and its second-quarter guidance came slightly above expectations, Vinh said in a note.

“Upside to guidance was due to consumer growing ~35% q/ q, while core segments such as networking, data center, and carrier infra are still correcting,” the analyst wrote. He added, however, that these segments could bottom in the second quarter.

“MRVL quantified its AI exposure as $200M in FY23 and expects it to double in each of the next two years,” Vinh further stated.

Check out other analyst stock ratings.

Susquehanna On Marvell Technology

Analyst Christopher Rolland reaffirmed a Positive rating, while raising the price target from $53 to $60.

“Marvell announced slightly better results and guidance, bucking the trend of recent quarters,” Rolland said.

“While the story appears to be getting back on track, and we appreciate the breakout of AI, we were somewhat surprised by the stock's strong AH reaction as we felt management dampened expectations somewhat for 2H,” he added.

Needham On Marvell Technology

Analyst Quinn Bolton maintained a Buy rating while lifting the price target from $50 to $65.

“AI was the obvious focus point on the call,” Bolton wrote. “For the first time, MRVL quantified its AI opportunity: FY23 = ~$200MM (actual); FY24 = > $400MM; and FY25 = >$800MM,” he added.

“Near-term AI sales are primarily driven by PAM4 DSPs and 400ZR DCI products,” the analyst wrote. “Bookings have increased materially for these products since LQ's call,” he added.

BMO Capital Markets On Marvell Technology

Analyst Ambrish Srivastava reiterated an Outperform rating and price target of $65.

“The AI potential has always been there, but the narrative for investors changed, and likely appropriately so, after the miss on multiple fronts in the prior quarter,” Ambrish said.

“However, this time, demonstrating a steadier handle on GM, along with the comments/details/specifics around the AI opportunity for the company, ought to put the company back in the list of potential other winners in AI,” he added.

MRVL Price Action: Shares of Marvell Technology had jumped by 28.24% to $63.44 at the time of publication Friday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading IdeasAIAmbrish Srivastavaartifical intelligenceBMO Capital MarketsChristopher RollandExpert IdeasJohn VinhJoseph MooreKeyBanc Capital MarketsMorgan StanleyNeedhamQuinn BoltonSusquehanna
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