Find out what happened to Marvell technology stock in this brief write-up. Marvell Technology shares (MRVL 17.68%) surged Friday following the chipmaker’s stellar performance delivering much better than what was expected during fiscal 2022 3rd quarter results. On Friday as of ET 3:20 PM, the stock price of the company was up by more than 17%.
Marvell News – More about the stock surge
The net revenue surged 61% Y-o-Y (year on year) to $1.211 billion, which is far more in estimates of $1.149 billion as per FactSet. Defying the FactSet consensus of $0.38, the Adjusted earnings per share increased 72% YoY and was found to be at $0.43, and above the guidance range of the management. Aside from the headline results, the non-GAAP gross margin was 65.1% and the operating margin was 34.5%.
If it was found that the third-quarter earnings were strong, the company is expecting that the net revenue will be $1.320 billion +/- 3%. This figure is better than what is being estimated at $1.208 billion.
When it comes to adjusted gross margin, it is expected to be 65%, which is slightly better as compared to the estimates of 65.6%. And as far as the adjusted earnings per share, it is being anticipated to be $0.48+/-$).03 per share and that is greater than the estimates of $0.42 per share.
By the end market, it is being anticipated that the data center might have another great quarter, which is led by cloud customers opting for a wide range of products. Revenue from the data center is also being expected to be double YoY followed by the sequential growth on a percentage basis in double-digits.
To play the metaverse, you can add the Marvell technology stock to a pick-and-shovel list. The management has called out on large-scale environments that are virtual like Facebook’s metaverse.
It has taken this step as a growth phase with great potential as it will increase the number of key trends that are already taking place in the cloud today. This also includes the necessity to store huge data in an environment that is adequately secured and connected by the electro-optic links that are of high speed to compute engines in a customized manner.
MRVL stock forecast 2025
As of December 3rd, a 12-month offering of price forecasts by 25 analysts for Marvell Technology stocks has projected 100 as the median target and a low estimate of 80 and a high estimate of 120.
A figure of +19.62 is the median estimate that is represented which is an increase from the previous price of 83.60.
Recommendations from analysts
The present consensus amongst the 30 in number polled analysts in the Marvell technology stock is to purchase stocks in Marvell Technology Inc. this rating has remained constant from buying rating since December.
