Marvell's strong Q3 earnings and focus on AI position it as a potential competitor to Nvidia.

From Nasdaq: 2024-12-09 13:15:00

Marvell (MRVL) reported strong Q3 earnings with a 98% increase in data center revenue year-over-year. The company projects another 19% sequential increase and 26% year-over-year growth in Q4. Marvell’s focus on AI-related sales positions it as a potential competitor to Nvidia (NVDA), with analysts giving it a Zacks Rank #1 (Strong Buy).

Marvell is gaining traction in the AI space with custom ASIC chips complementing Nvidia’s GPUs. Partnerships with tech giants like Microsoft and Alphabet, as well as a recent deal with Amazon, highlight Marvell’s role in the AI ecosystem. With a pivot towards AI, Marvell is poised for growth in data center and AI-related sales.

Wall Street analysts have upgraded earnings estimates for Marvell, with a 13.7% increase for the current quarter and strong growth forecasts for next year. Sales are expected to grow 39.4% to $7.95 billion, and earnings to climb 73.6% to $2.68 per share. Following a 23% surge in shares post-earnings, Marvell presents a compelling buying opportunity with its AI focus and growth potential.

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Read more at Nasdaq: Is Marvell the Next Big AI Winner?