Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Marvell will be ‘in the same camp’ as AMD, Nvidia after ‘one of the best’ semiconductor earnings calls

by
December 5, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Shares of Marvell Technology Inc. experienced their best trading day in 13 years after an earnings report that led analysts to predict the chip maker’s ascension into the top tier of hot semiconductor stocks.

Marvell shares
MRVL,
+17.68%

increased 17.7% Friday following the company’s fiscal third-quarter earnings report, which saw Marvell top expectations for its latest quarter, issue an upbeat forecast for the current period, and offer encouraging longer-term commentary. The stock posted its largest single-day percentage gain since Dec. 3, 2008, when it rose 20.4%.

RELATED POSTS

‘God bless Elon Musk’: Top Republican lauds Twitter owner ahead of key hearing

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

Chief Financial Officer Jean Hu said on the earnings call late Thursday that she expects “continued strong demand across our end markets and improvement in supply to drive our top line revenue growth above 30% in fiscal 2023.” That projection generated enthusiasm, as did Marvell’s January-quarter revenue forecast that implied upwards of 60% growth.

The company’s earnings call could have been “one of the best (if not the best) semi conf[erence] calls I have listened to in quite some time,” wrote Mizuho desk-based analyst Jordan Klein in a note affiliated with Mizuho’s sales operations and not its research team. “In fact, it was a GAME-CHANGER for investors and in my view squarely positions Marvell as a best-in-class GROWTH SEMI into CY22,” he continued.

Marvell “will be in the same camp now” as Advanced Micro Devices Inc.
AMD,
-4.43%

and Nvidia Corp.
NVDA,
-4.46%
,
he argued, amid the company’s cheery growth projections and likely expectations among the bull camp for $4 a share in annual earnings power within a few years. The company has a “clear line of sight given a backlog full of design wins that has basically locked in that growth rate” on the revenue line, he said in his note.

The current FactSet EPS consensus is $1.54 for the current fiscal year, and is $2.20 for next year.

Klein wasn’t alone in likening Marvell to a red-hot chip stock. “Marvell just pulled an ‘Nvidia’ on the Street last night, with an unambiguous beat and raise and taking FY23 sales growth to over 30%,” Rosenblatt Securities analyst Hans Mosesmann wrote.

Subscribe: Want intel on all the news moving markets? Sign up for our daily Need to Know newsletter.

Marvell’s report sparked at least one upgrade from a research analyst: Cowen & Co.’s Karl Ackerman, who lifted his rating on Marvell’s stock to outperform from market perform.

“It’s hard to argue this was anything but a watershed quarter with a triad of better results, better guidance, and an expanding design pipeline that anchors a new F23 guide,” Ackerman wrote.

Ackerman cheered Marvell’s recent evolution, anchored by “portfolio-optimization” progress that has made the company increasingly competitive, in his view.

“Marvell has transformed itself from being a fast-follower to a market leader of providing semi-custom, integrated ICs on leading-edge silicon that address bandwidth friction existing in today’s networks,” he wrote, while increasing his price target to $100 from $60.

The report served as validation for those who had already taken bullish views on the stock and are now bringing their expectations higher. “Taking a step back, we have been highlighting Marvell as one of the best growth stories in semis, and to this end they are clearly not disappointing,” Evercore ISI analyst C.J. Muse wrote.

Muse now sees “a clear path to a $3.25+ earnings stretch goal in FY24,” whereas the consensus was for $2.43 a share, he said. “Looking out further, we believe that the $4.00 bogey we have been discussing by CY25 is now likely conservative – with earnings likely tracking closer to $4.25+ when all is said and done (at a minimum),” Muse continued, while boosting his price target to $105 from $72 and keeping an outperform rating.

Marvell shares have rocketed 75% so far this year, while Nvidia shares have soared 134%, AMD’s stock has rallied 56% and the S&P 500
SPX,
-0.84%

has risen 20%.

ShareTweetPin

Related Posts

‘God bless Elon Musk’: Top Republican lauds Twitter owner ahead of key hearing

by
February 1, 2023
0

U.S. Rep. James Comer (R-KY), Chairman of the House Oversight and Accountability Committee, speaks at a media event at the...

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

by
February 1, 2023
0

In this article ADANIENT-IN Follow your favorite stocksCREATE FREE ACCOUNT Gautam Adani, billionaire and chairman of Adani Group, during an...

Morgan Stanley analyst says these ‘undervalued’ bank stocks could rise 24%

by
February 1, 2023
0

The top picks of Morgan Stanley bank analyst Betsy Graseck are looking undervalued as the market rallies, she said Wednesday...

Here’s what the Federal Reserve’s 25 basis point interest rate hike means for your money

by
February 1, 2023
0

The Federal Reserve raised the target federal funds rate for the eighth time in a row on Wednesday, in its...

Samsung launches new Galaxy S23 smartphone lineup with improved camera, gaming capabilities

by
February 1, 2023
0

In this article SMSD-GB Follow your favorite stocksCREATE FREE ACCOUNT Samsung announced its flagship Galaxy S23 smartphone lineup on Wednesday....

Next Post

Blackstone just became the biggest warehouse landlord in the world

Bets That Fed Hikes May Peter Out Spur Inversions in Eurodollars

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net