BUZZ-Marvell Technology surges on upbeat Q4 forecast, propelling broader chip sector

Reuters
2024-12-05

(Updates)

** Shares of chipmaker Marvell Technology soar 21.3% to $116.35

** Stock touch an all-time high in day trading

** Co on Tuesday forecast Q4 rev. of $1.8 bln, plus or minus 5%, vs estimates of $1.65 bln - data compiled by LSEG

** Posted Q3 rev. of $1.52 bln, beating estimates of $1.46 bln, on strong demand for its custom AI chips; data center revenue doubled to $1.10 bln

** Q3 adjusted EPS of 43 cents topped estimates of 41 cents

** At least 18 brokerages raise PT on the stock

** "Marvell is capitalizing on a massive artificial intelligence chip opportunity with a burgeoning custom accelerator portfolio and a dominant optical chip position" -Morningstar

** Other chip stocks also rise tracking MRVL's gains

** NVIDIA up 1.9%, Broadcom rises 0.6%, Monolithic Power Systems gains 1%

** Amkor Technology gains 1%, while GlobalFoundries

up 1.12%

** Overall Philadelphia SE semiconductor index rises 1.6%

** Including session's move, MRVL up 93.5% YTD vs Philadelphia SE semiconductor index's gains of 22.6%

(Reporting by Kritika Lamba and Ragini Mathur in Bengaluru)

((Kritika.Lamba@thomsonreuters.com))

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