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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (92908)	9/1/2024 3:33:47 PM
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Marvell capitalizes on AI and rising data center demand Aug. 30, 2024 9:22 AM ET By: Brandon Evans, SA News Editor Sundry Photography/iStock Editorial via Getty Images Marvell (NASDAQ: MRVL) impressed investors with its latest financial results, as several of its products are ramping up during the second half of the year to supply data centers. Marvell surged as much as 12% during pre-market trading on Friday. Their products are being used by some of the biggest names in the Magnificent Seven, including its 1.6T optical DSP into Nvidia's ( NVDA) Blackwell GPU platform, as well as its AI ASICS in Amazon's ( AMZN) Trainium 2 AI processor and Google's ( GOOG)( GOOGL) Axion CPU processor. "In fact, we estimate that Marvell is going to ship $575-$600M in AI ASICs this year (versus company prior view of $500M+) and exit the year with a quarterly run-rate of $300M (versus mgmt prior view of $200M+)," said J.P. Morgan analyst Harlan Sur, in a Friday note. Marvell's second quarter data center sales increased 92% from the same quarter one year prior. "Just as important, the company's cyclical businesses are now inflecting higher and the AI/cyclical tailwinds will continue into CY25, in our view, and catalyzing a multi-quarter period of positive EPS revisions," Sur added. J.P. Morgan rates Marvell at Overweight with a hefty $90 price target. Evercore ISI rates Marvell at Outperform and increased its price target to $98 from $91 after reviewing its second quarter fiscal 2025 results and outlook. "MRVL is benefitting from two AI growth drivers (custom ASICs and Electro-Optics) at the same time that its higher margin Enterprise and Carrier businesses appear to be emerging from a 2-yr inventory correction," noted Evercore analysts Mark Lipacis and Natalia Winkler. Barclays raised its price target to $85 from $80, and maintained its Overweight rating. "Net-net, we continue to like the story here as AI product ramps should drive further upside through the end of next year, layering on to core business growth driven by accelerating fundamentals in the non-DC segments," said Barclays analyst Tom O'Malley. Meanwhile, J.P. Morgan increased its price target to $82 from $77 and maintained its Equal-weight rating. "We like the narrative here, but the stock trades at a very rich multiple on forward P/E, especially including stock compensation," said Morgan Stanley analyst Joseph Moore, in a Friday note. "For the last several years the company has described that its unique infrastructure exposures and unique growth drivers (initially 5G infrastructure, then cloud compute including custom microprocessors, more recently AI) would allow them to transcend cycles." "But including stock compensation, in the last 8 years, earnings have never been higher than $1.36, and have averaged $0.71, with a vicious sawtooth pattern; on a non GAAP basis, earnings peaked at $2.12 and averaged $1.30," he added.