Details of the News:
Marvell Technology’s shares have gained 6.41% in the mid-day session as a reaction to competitor Nvidia’s recent impressive quarterly results. Nvidia’s revenue exceeded expectations, with a record-breaking data center revenue of $4.28 billion. The company showed notable profitability improvements, with its gross margin and operating margin surpassing expectations. Earnings per share beat estimates by a considerable margin. Furthermore, inventory levels decreased during the period. Nvidia’s revenue guidance for the next quarter was greater than anticipated by over 50%, and its operating profit guidance also exceeded consensus estimates. CEO Jensen Huang highlighted Nvidia’s preparedness to benefit from advancements in accelerated computing and generative AI as the industry shifts from general-purpose to accelerated computing, which could generate a trillion-dollar change in global data center infrastructure. Marvell is considered a peer of Nvidia in the semiconductor industry.
Market Signals:
The recent fluctuation of Marvell Technology’s shares is in line with that of the semiconductor sector and does not show a significant change in perception toward the company’s business fundamentals. The previous major move occurred two months ago when Marvell gained 5.19% after memory chipmaker Micron reported earnings. Although Micron’s results were lower than consensus estimates, the semiconductor company rebounded better than anticipated. Analysts noted the industry’s long-term demand and supply-demand balance, which led to optimism. Despite Marvell’s 34.9% gain since the beginning of the year, it is still 20.9% below its 52-week high of $61.43 from June 2022. An investment worth $1,000 in Marvell Technology shares five years ago would now be worth $2,160.
Are you considering buying Marvell Technology shares? Check out our free analysis of the earnings results here.
