Published - May 26th, 2023 @ 3:47 PM (GMT+2 )

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Post-Market Surge for Marvell Technology Shares

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Marvell Technology Inc. (MRVL) saw its shares surge by 15% in after-hours trading on Thursday following its robust quarterly projections and a promising forecast that its AI-related revenues would see a twofold increase this year.

Fiscal First-Quarter Losses and Adjusted Earnings

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The semiconductor company reported a net loss of $168.9 million for the fiscal first quarter, equivalent to 20 cents per share. This compares with a loss of $165.7 million or 20 cents per share for the same period last year. On an adjusted basis, earnings per share were 31 cents, surpassing analysts' estimate of 29 cents.

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Marvell's revenues dipped to $1.32 billion from $1.45 billion, beating the forecast of $1.30 billion. "Marvell is leveraging its advanced network connectivity solutions and nascent cloud-optimized silicon platform to tap into AI as a primary growth catalyst," said CEO Matt Murphy. He added, "We anticipate a significant surge in our AI revenue in fiscal 2024, at least doubling from the prior year, with a robust growth trajectory in the subsequent years."

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Upbeat Forecast for Fiscal Second Quarter

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Looking ahead, Marvell forecasts a revenue midpoint of $1.33 billion for the fiscal second quarter, slightly above the FactSet consensus of $1.31 billion. Adjusted earnings per share are expected to be 32 cents, beating the analyst estimate of 30 cents. Marvell's projected GAAP gross margin is between 44.3% and 46.8%, with a non-GAAP gross margin of 60.0% to 61.0% for the next quarter.

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Anticipated Revenue Growth and Margin Expansion, Boosted by Nvidia's Positive Remarks

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According to Murphy, Marvell anticipates a pickup in revenue growth in the latter half of the fiscal year, along with an expansion in gross and operating margins. Marvell shares also experienced an 8% rise in Thursday's regular session, spurred by positive remarks from Nvidia Corp. (NVDA) about the robust demand for AI-focused chips.

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