Marvell Technology's stock surged 19.2% in December on positive earnings and growth

From Nasdaq: 2025-01-04 10:00:00

Marvell Technology’s stock surged 19.2% in December, finishing the year with an 83% increase. The company reported positive earnings and growth, particularly in its data center segment, which saw a 98% increase in revenue. Marvell also announced a five-year collaboration deal with Amazon to enhance AI data center infrastructure.

Marvell’s fiscal third-quarter earnings beat analyst expectations, with revenue up 7% to $1.52 billion and adjusted earnings per share rising 5% to $0.43. The company’s data center segment is thriving, contributing 73% of revenue. Management expects revenue to grow by 19% sequentially or 99% annualized in the current quarter.

Marvell unveiled new innovative technologies in December, including a new memory interface for ASICs and a high-speed digital signal processor for AI communications. The stock now trades at 43 times the coming year’s earnings estimates, raising questions about its valuation amidst the AI buildout. Investors are advised to monitor the strength and duration of the AI trend.

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Read more at Nasdaq: Why Marvell Technology Rallied 19.2% in December