There is no dispute over dominance Nvidia company Nasdaq: NVDA They are leading the AI revolution now and for the foreseeable future as they make faster progress with their chips. However, a 12-month backlog on the next-generation Blackwell GPU architecture is causing many PC and technology customers to look elsewhere in the meantime.
Marvel technology today
Marvell technology
(As of 6/12/2024 ET)
- 52 week range
- $50.56
▼
$119.88
- Dividend yield
- 0.21%
- Price target
- $119.04
He enters Marvell Technology Company Nasdaq: MRFL And for her AI chips are specifically designed for the application-specific integrated circuit (ASIC) on which the supermeters are loaded.
These chips are designed for specific tasks, and often provide better performance at a lower cost for some AI workloads. Marvell CEO Matthew Murphy announced that they are entering a “new era of growth” driven by demand for its ASIC devices.
Grow a dedicated moat for hyperscalers
While NVIDIA’s AI dominance is driven by the compact nature of its complete ecosystem consisting of powerful GPU architecture (Hopper and Blackwell), software platform (CUDA) and development kits, networking solutions, partnerships and a loyal and growing developer community, Marvell’s ASICs do not replace NVIDIA’s Hopper AI chipset. Instead, they are working on optimizing specific AI workloads tailored to hyperscale needs.
ASIC devices designed specifically for Microsoft, Amazon, and Google Cloud
Marvell drives significant data center revenue growth with four custom ASIC chips.
Maia-2 ASIC is a specially designed customer AI accelerator Microsoft Corporation Nasdaq: MSFT The Azure platform is dedicated to training and inference workloads.
The Axion ASIC is specifically designed for Alphabet company Nasdaq:Google Google Cloud. It’s a custom CPU designed specifically for Google’s data centers to optimize specific workloads for its cloud platform.
Trainium is designed specifically for Amazon.com Inc Nasdaq: AMZN Amazon Web Services (AWS) for the purposes of training large, complex machine learning models and running their AI services.
Inferentia is also an ASIC designed specifically for Amazon. As the name implies, it is specifically designed to be an AI inference accelerator for AWS. It is designed to efficiently run already trained AI models and optimize them for inference at scale.
Marvel competes Broadcom Company Nasdaq:AFGO And their ASICs. Broadcom helped develop the Google Tensor chip, and reportedly designed ASICs for OpenAI.
The growth spurt began in Q3: Data center revenues rose 98% year-over-year in Q3
Marvell reported fiscal third-quarter 2024 EPS of 43 cents, beating consensus estimates by 2 cents. Revenue rose 7% year-over-year to $1.52 billion, sharply beating consensus estimates of $1.46 billion but growing 19% sequentially. Non-GAAP gross margin was 60.5%. Data center revenues rose 98% year-over-year and 20% quarter-over-quarter to $1.1 billion, representing 73% of total revenues, compared to 40% in the same period last year.
Non-data center revenues began to recover in the fiscal third quarter
Non-data center revenues began to recover in the third quarter. Enterprise and carrier revenues increased 4% quarter-over-quarter. FQ4 growth is expected in the mid-teens. While automotive and industrial revenues declined 22% year-over-year, they increased 9% quarter-over-quarter. Fourth quarter revenues are expected to grow at a low to mid-single digit quarterly growth rate. While consumer revenues declined 43% year-over-year, they increased 9% quarter-over-quarter. Marvell expects FQ4 to decline in the middle of the quarter seasonally.
Marvell issues bullish FQ4 guidance
Marvell Technology stock forecast today
$119.04
4.87% upModerate purchase
Based on 26 analyst ratings
| High expectations | $140.00 |
|---|---|
| Average expectations | $119.04 |
| Low expectations | $78.00 |
Marvell Technology stock forecast details
For the fiscal fourth quarter of 2025, Marvell expects to report earnings per share of 54 cents to 64 cents, versus consensus estimates of 52 cents. Revenues are expected to range between $1.71 billion and $1.89 billion, versus the consensus estimate of $1.65 billion.
Matt Murphy, CEO, commented: “The exceptional performance in the third quarter and our strong outlook for the fourth quarter is primarily driven by our custom AI software, which is now in mass production, and which is further enhanced by continued strong demand from cloud customers.” For our market-leading interconnection products, we look forward to a strong end to this fiscal year and expect the great momentum to continue into fiscal 2026.
MRVL triggers ascending triangle breakout
An ascending triangle is formed by the resistance of a flat and converging upper trend line with the support of a rising (bullish) lower trend line. A breakout occurs when a stock rises across the upper trend line.
MRVL formed flat upper trend line resistance at $94.95, which converged at the high point with rising lower trend line support. Upper trend line resistance had been tested and failed in two previous breakout attempts, but pullbacks were shallow at higher lows. The fixed daily VWAP support is $92.16. The breakout prompted a third-quarter earnings release and guidance raise. Shares rose from $98.72 to $109.57, forming gap-filling levels. MRVL initially peaked at $119.88 making a 52-week high. The daily RSI is flat at the 74 range. Fibonacci (Pullback support levels (Fib) are located at $109.57, $104.28, $98.72, and $87.58.
The average consensus target price for MRVL is $119.04Which means an increase of 4.87% The analyst’s highest price target is: $140.00. It has 24 analysts Purchase ratings and two pending reviews. The stock has a short interest of 2.3%.
Actionable options strategiesBullish investors can consider using cash-secured sell-offs at Fibonacci retracement support levels to buy the dip. If the stock is allocated, writing covered calls at rising Fibonacci levels implements the wheel strategy for income plus a huge 0.21% annual dividend rate.
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