Prime Highlights
- Marvell Technologyshares surged 18% after the company reported better-than-expected earnings and strong guidance driven by rising demand for AI technology.
- CEO Matt Murphysaid the company is seeing clear business momentum, especially from its data-center and AI infrastructure segments.
Key Facts
- Marvell reported adjusted earnings of $0.80 per share on $2.2 billion revenue, beating analyst expectations of $0.79 EPS and $2.1 billion revenue.
- The company expects about $2.4 billion in fiscal Q1 2027 revenue, above forecasts, while its data-center business surpassed $6 billion in fiscal 2026 revenue, up 46% year-over-year.
Background
Shares of semiconductor company Marvell Technology jumped 18% on Friday after the firm reported better-than-expected quarterly earnings and issued strong guidance backed by rising demand for artificial intelligence technology.
The company posted adjusted earnings of 80 cents per share, slightly higher than the 79 cents per share expected by analysts. Revenue for the fourth quarter reached $2.2 billion, beating market forecasts of $2.1 billion.
Chief Executive Officer Matt Murphy expressed confidence in the company’s outlook during the earnings call. He said the company’s results and forecasts show clear momentum in its business.
Marvell expects first-quarter fiscal 2027 revenue of around $2.4 billion, with a margin of plus or minus 5%. Analysts had earlier predicted revenue of about $2.27 billion, making the company’s guidance stronger than expected.
Growth in the company’s data center business played a major role in the positive results. Marvell said revenue from this segment in fiscal 2026 exceeded $6 billion, marking a 46% increase compared with the previous year. The company supplies chips used in high-performance computing systems and artificial intelligence infrastructure.
Marvell also strengthened its technology portfolio through acquisitions. Last month it completed the purchase of Celestial AI and XConn Technologies. Murphy said these deals could add around $250 million in combined revenue by fiscal 2028.
Looking ahead, the company expects $14.48 billion in revenue and earnings of $5.35 per share by fiscal 2028.
Analysts responded positively to the results. J.P. Morgan kept its overweight rating on the stock and increased its price target from $130 to $135 because it expects strong long-term growth and higher demand for AI infrastructure.
