Marvell Technology Stock Jumps on Optimism Driven by ‘Custom AI’ | Global News Avenue

Marvell Technologies (MRVL) The stock price rose the most Nasdaq 100 Index Shares of the company jumped Wednesday after the chipmaker released its current-quarter forecast. Exceeded Wall Street expectations.

Late Tuesday, the company forecast fiscal 2025 fourth-quarter revenue of $1.8 billion, plus or minus 5%, driving growth of 26% Year-on-year Well above Visible Alpha analysts’ average estimate of $1.65 billion.

Chief Executive Officer (CEO) Matt Murphy said the forecast was “driven by our custom AI chip program,” which is now in volume production.

Just for the company Earnings Conference CallMurphy noted that Marvell is on track to exceed its previous expectations Artificial Intelligence (AI) By fiscal 2026, network and custom processor chip sales will reach $2.5 billion.

Marvell shares rose about 23% on Wednesday, nearly doubling by 2024.

Analysts see more growth potential

Bank of America (BofA) analysts maintained the “Buy” rating It raised its price target to $125 from $108, which represents a premium of about 6% over Wednesday’s rise in Marvel’s stock price to $118 per share.

Analysts said the chipmaker has “transformed into a data center chip leader” “in cloud data centers, 5G Infrastructure, advanced automotive, enterprise networking and security markets. ”

These opportunities can drive 20% to 25% long-term sales growth and 25% to 30% long-term growth Earnings per share (EPS) The bank’s analyst note added.

This article has been updated to reflect the latest share price information.