Published - May 26th, 2023 @ 3:47 PM (GMT+2 )
Post-Market Surge for Marvell Technology Shares
Marvell Technology Inc. (MRVL) saw its shares surge by 15% in after-hours trading on Thursday following its robust quarterly projections and a promising forecast that its AI-related revenues would see a twofold increase this year.
Fiscal First-Quarter Losses and Adjusted Earnings
The semiconductor company reported a net loss of $168.9 million for the fiscal first quarter, equivalent to 20 cents per share. This compares with a loss of $165.7 million or 20 cents per share for the same period last year. On an adjusted basis, earnings per share were 31 cents, surpassing analysts' estimate of 29 cents.
Marvell's revenues dipped to $1.32 billion from $1.45 billion, beating the forecast of $1.30 billion. "Marvell is leveraging its advanced network connectivity solutions and nascent cloud-optimized silicon platform to tap into AI as a primary growth catalyst," said CEO Matt Murphy. He added, "We anticipate a significant surge in our AI revenue in fiscal 2024, at least doubling from the prior year, with a robust growth trajectory in the subsequent years."
Upbeat Forecast for Fiscal Second Quarter
Looking ahead, Marvell forecasts a revenue midpoint of $1.33 billion for the fiscal second quarter, slightly above the FactSet consensus of $1.31 billion. Adjusted earnings per share are expected to be 32 cents, beating the analyst estimate of 30 cents. Marvell's projected GAAP gross margin is between 44.3% and 46.8%, with a non-GAAP gross margin of 60.0% to 61.0% for the next quarter.
Anticipated Revenue Growth and Margin Expansion, Boosted by Nvidia's Positive Remarks
According to Murphy, Marvell anticipates a pickup in revenue growth in the latter half of the fiscal year, along with an expansion in gross and operating margins. Marvell shares also experienced an 8% rise in Thursday's regular session, spurred by positive remarks from Nvidia Corp. (NVDA) about the robust demand for AI-focused chips.
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