The artificial-intelligence frenzy is powering another technology stock rally.
Marvell
Technology is the latest chip maker to join
Nvidia
in surging as it forecasts AI to be a long-term growth driver.
Marvell (ticker: MRVL) stock rose 16% in premarket trading on Friday to $57.37. While its first-quarter earnings narrowly beat analysts’ expectations on Thursday, the real excitement was about the semiconductor firm’s AI prospects.
“Increasing demand for generative AI is driving MRVL’s network connectivity products and cloud-optimized silicon platform,” analysts at KeyBanc wrote in a research note on Friday.
KeyBanc raised its target price on Marvell to $70 from $60 and kept a rating of Overweight on the stock.
For those skeptical of an AI bubble, Marvell at least can say it is already making money from the technology. The company, which makes networking chips used in data centers, said it generated AI revenue of $200 million in its most recent fiscal year, out of total revenue of $5.92 billion.
Marvell expects AI-related revenue to double to around $400 million in its current fiscal year and rise to $800 million in its next fiscal year.
Write to Adam Clark at [email protected]
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