Two semiconductor companies are rushing higher on Friday following Thursday’s earnings calls.
Shares of Marvell Technology traded 11% higher after posting earnings results that were stronger than what investors had expected. Broadcom shares are also having a banner day following the company's earnings, read more here.
Earnings per share for Marvell came in at $0.43 which was $0.02 higher than the Wall Street target. Revenue results were equally strong as the company produced $1.56 billion compared to expectations of $1.46 billion. Those revenue figures reflect growth of 6.9% against last year’s results.
Marvell’s success for the quarter was focused on its data center revenue which grew by almost 100% over the same quarter last year.
The company issued positive earnings guidance for both earnings per share and revenue.
The company’s strong business outlook is based on continued growth in the data center industry. Ai service companies continue to increase demand for AI computing space as growth for service has now regained its momentum.
MRVL stock closed at a new all-time high near $120. The stock crested at the same price just more than a week ago but quickly reversed to $105 earlier this week. That sudden sell-off is Marvell stock represented an opportunity for investors as investors began to doubt the company’s ability to post a strong earnings show.
Shares are still likely to slow their move higher as the stock remains near overbought conditions, though the long-term trends point to higher prices.
Marvell stock maintains a bullish outlook with a price target of $150.
