Marvell Technology Guides to 25% Data-Center Growth Next Year as Asic Headwinds Fade, Morgan Stanley Says

MT Newswires Live12-04 00:07

Marvell Technology (MRVL) guided to 25% data-center revenue growth next year, above prior expectations, as earlier ASIC-related headwinds have largely passed, Morgan Stanley said in a note Wednesday.

The chipmaker reported fiscal Q3 revenue of $2.07 billion, up 37% from a year earlier and slightly ahead of Wall Street estimates. Data-center sales climbed 38% year over year, while earnings of $0.76 per share topped analyst forecasts. Marvell also issued above-consensus guidance for the current quarter, citing broad-based strength across cloud connectivity and AI-focused products.

The company's acquisition of Celestial AI, though "dilutive" in the near term, strengthens its position in next-generation optical scale-up architectures as copper interconnects approach physical limits. Celestial is expected to generate meaningful revenue in late fiscal 2028, the note said.

Morgan Stanley reiterated its equal weight rating on Marvell and raised its price target to $112 from $86.

Shares of the company were up more than 3% in recent Wednesday trading.

Price: 96.23, Change: +3.34, Percent Change: +3.60

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment