Latest news with #MRVL
Yahoo
2 days ago
- Business
- Yahoo
Marvell price target raised to $70 from $60 at TD Cowen
TD Cowen raised the firm's price target on Marvell (MRVL) to $70 from $60 and keeps a Buy rating on the shares. The firm said an in-line print/guide with strong language on 3nm engagement with Amazon (AMZN), but 'multiple paths' commentary is likely to continue to concern investors who will be hoping for more detail at the June AI webinar. Long-term momentum is there, but lack of 'upside' in a strong spending environment, and inherent limited visibility in custom is likely to keep the stock a battleground. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on MRVL: Disclaimer & DisclosureReport an Issue Marvell price target lowered to $90 from $110 at Raymond James Marvell price target lowered to $90 from $110 at Loop Capital Marvell price target lowered to $85 from $95 at Piper Sandler Marvell Technology: Strong Buy Rating Backed by AI-Driven Growth and Strategic Collaborations Marvell's Promising Growth Prospects and Strategic Engagements Justify Buy Rating
Yahoo
3 days ago
- Business
- Yahoo
Marvell Beats Q1 Earnings Estimates, Guides Strong on Robust Demand
Marvell Technology, Inc. MRVL started fiscal 2026 on a strong note by reporting stronger-than-expected first-quarter results. The chip maker reported first-quarter non-GAAP earnings of 62 cents per share, decisively exceeding the Zacks Consensus Estimate by 1.64%. Quarterly earnings also came ahead of the midpoint of the company's guidance of 61 cents (+/- 5 cents). Furthermore, the bottom line increased 158% year over year and 3% sequentially, driven by higher revenues and effective cost management. Marvell's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.6%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Marvell's first-quarter revenues of approximately $1.9 billion beat the Zacks Consensus Estimate by 1.04%. The top line was also above the midpoint of management's guidance of $1.875 billion (+/- 5%). First-quarter revenues grew 63% year over year and 4% sequentially, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets. Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote Marvell's top-line growth was supported by impressive performances across its segments, which rose sequentially, while the data center segment registered phenomenal growth both year over year and quarterly. Data center revenues of $1.44 billion increased 76% year over year and 5% sequentially. The solid momentum in electro-optics products, custom AI silicon and next-gen switch divisions primarily drove the robust year-over-year and sequential increase. The segment accounted for 76% of the quarter's total revenues, demonstrating that it is currently MRVL's largest end market. Our estimate for Data Center's fiscal first-quarter revenues was pegged at $1.4 billion. Revenues from enterprise networking increased 16% year over year and 4% sequentially to $178 million and accounted for 9% of the total revenues. The year-over-year rise was primarily driven by continued demand recovery across the end market. Our estimate for enterprise networking's fiscal first-quarter revenues was pegged at $186.9 million. Carrier infrastructure revenues, which accounted for 7% of the total revenues, soared 93% year over year and 31% sequentially to $138 million due to continued demand recovery. Our estimate for the carrier infrastructure's fiscal first-quarter revenues was pegged at $114.4 million. Automotive/Industrial revenues decreased 2% year over year and 12% sequentially to $76 million, mainly due to continued weakness across the industrial end market, which more than offset the benefits of recovery in the automotive segment. Revenues from this segment constituted 4% of the total revenues. Our estimate for the Automotive/Industrial's fiscal first-quarter revenues was pegged at $88.9 million. Consumer revenues, representing 2% of the total revenues, increased 50% year over year but declined 29% sequentially to $42 million. Our estimate for Consumer's fiscal first-quarter revenues was pegged at $90.4 million. Marvell's non-GAAP gross profit of $1.13 billion reflected an increase of 56.6% on a year-over-year basis and 3.8% sequentially. However, the non-GAAP gross margin of 59.8% contracted 260 basis points (bps) on a year-over-year basis and 30 bps sequentially. Non-GAAP operating expenses totaled $486.2 million compared with $453.8 million in the year-ago quarter and $479.4 million in the previous quarter. Marvell's non-GAAP operating profit of $647.3 million reflected an increase of 239.6% on a year-over-year basis and 5.7% sequentially. Marvell's non-GAAP operating margin of 34.2% expanded 1,090 bps year over year and 50 bps sequentially. Considering continued robust demand for its custom AI chips, Marvell initiated strong revenue guidance for the second quarter. It expects revenues to be $2 billion (+/- 5%) for the second quarter. The Zacks Consensus Estimate for revenues is pegged at $1.98 billion, with a year-over-year improvement of 55.2%. The non-GAAP gross margin is projected to be in the 59%-60% range, while non-GAAP operating expenses are estimated to be $495 million. The company projects non-GAAP earnings per share for the fiscal second quarter to be 67 cents per share (+/- 5 cents per share), while the consensus mark for the same is currently pegged at 65 cents. The figure remains unchanged over the past 60 days and indicates a year-over-year improvement of 116.7%. Marvell currently carries a Zacks Rank #4 (Sell). Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Amphenol shares have surged 27.3% in the year-to-date period. The Zacks Consensus Estimate for Amphenol's full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.7% from the year-ago quarter's reported figure. Juniper Networks shares have declined 3.7% in the year-to-date period. The Zacks Consensus Estimate for Juniper Networks' full-year fiscal 2025 earnings has been revised upward by a penny to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%. Upwork shares have fallen 3.2% in the year-to-date period. The Zacks Consensus Estimate for Upwork's full-year 2025 earnings has been revised upward by 10 cents over the past 30 days to $1.14 per share, implying a rise of 9.6% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
3 days ago
- Business
- Forbes
50% Upside For MRVL Stock?
CHONGQING, CHINA - MARCH 3: In this photo illustration, the Marvell Technology Inc. logo is ... More displayed on a smartphone screen on March 3, 2025, in Chongqing, China. (Photo by) Marvell Technology (NASDAQ:MRVL), a firm focused on manufacturing semiconductor integrated circuits for data centers, has recently revealed its Q1 fiscal 2026 results. The company slightly surpassed analyst predictions, disclosing earnings of $0.62 per share on revenues of $1.9 billion, compared to consensus estimates of $0.61 and $1.88 billion, respectively. In spite of this positive outcome, Marvell's stock fell by 3% in after-hours trading and has declined by 43% since the start of the year. A considerable part of this downturn took place in March, following a disappointing outlook. Investors looking for steady returns may want to consider investigating diversified investment options such as the Trefis High Quality portfolio, which has shown remarkable performance, achieving over 91% returns since its inception. Additionally, see – Nvidia Stock's 1 Big Risk Considering the stock's fluctuations and the recent decline, you might be questioning whether Marvell is currently a good buy. From a valuation perspective, MRVL stock seems appealing. At approximately $62 per share, it is trading at 8.3 times trailing revenues and 32 times trailing adjusted earnings. This is significantly lower than its three-year average price-to-sales (P/S) ratio of 10.4 times and price-to-earnings (P/E) ratio of 42 times. While a decrease in valuation multiples may appear justified given the company's average revenue growth of only 10% over the last three years and a shrinkage in its adjusted net income margin from 30.5% in fiscal 2023 to 26.3% currently, this does not convey the complete picture. Marvell's Q1 results demonstrated impressive growth, with overall revenues soaring by 63% year-over-year. This was fueled by a strong 76% rise in core data center sales, reaching $1.44 billion. This increase is largely due to the rising demand for custom AI chips. Although the adjusted gross margin decreased by 240 basis points year-over-year to 59.8%, the company's bottom line witnessed a substantial enhancement, reporting earnings of $0.62 per share, marking a 158% increase from $0.24 in the same quarter last year. In the future, Marvell expects Q2 sales to be around $2.0 billion, which aligns with market expectations. Building upon the valuation discussion, Marvell is currently experiencing growth at a much quicker rate than it has over the past three years. Analysts estimate that sales are projected to grow by 42% this year and an additional 20% next year. This accelerated growth trajectory is anticipated to have an even greater influence on earnings, which are expected to rise by 2.3 times during this period. This swift growth trend calls for an upward adjustment in valuation multiples. Notably, the average analyst price target of $96 for MRVL indicates a considerable upside potential of more than 50%. Marvell's strategic foray into the AI sector began with its interconnect solutions for data centers. However, the greater opportunity lies in the creation of application-specific integrated circuits (ASICs), which function as custom AI chips. These tailored chips for hyperscaler data centers offer numerous benefits over general-purpose GPUs, such as those provided by Nvidia and AMD. Specialized chips can lower costs, enhance energy efficiency, and optimize performance for specific functionalities, unlike general-purpose GPUs intended for a wider range of applications. Marvell has been strengthening its alliances with significant AI stakeholders, including Amazon Web Services, which has expanded its agreements for data center semiconductors, including bespoke AI products. While the valuation of MRVL stock seems enticing, it is essential to take potential risks into account. Historically, Marvell's stock has underperformed in comparison to the broader market during economic downturns. For example, during the inflation shock of 2022, it fell by 62% from its peak, in contrast to a 25.4% decline for the S&P 500. Similarly, amid the COVID-19 pandemic correction in 2020, it dropped by 40% versus a 33.9% decrease for the S&P 500. This trend indicates that MRVL stock is more vulnerable to negative macroeconomic conditions. In addition, there are ongoing concerns regarding the slow rollout of Amazon's Trainium chips amid weak external demand, which could potentially hinder future revenue growth. Therefore, while Marvell stock might seem attractive from a valuation angle, investors should carefully assess these risks. You may want to purchase MRVL during this current dip, but investing in a single stock, regardless of its potential, carries risks. If you aim to mitigate that risk while still positioning yourself for strong upside, consider the High Quality portfolio, which has surpassed the S&P 500 and achieved returns exceeding 91% since its launch. Why is that? As a collective, HQ Portfolio stocks have offered superior returns with lower risk compared to the benchmark index; presenting a smoother ride, as evidenced in HQ Portfolio performance metrics.
Yahoo
3 days ago
- Business
- Yahoo
Dell Technologies Inc (DELL) Q1 2026 Earnings Call Highlights: Strong AI Server Demand and ...
Revenue: $23.4 billion, up 5% year-over-year. Earnings Per Share (EPS): $1.55, up 17% year-over-year. Gross Margin: $5.1 billion, or 21.6% of revenue, down 80 basis points. Operating Income: $1.7 billion, up 10%, or 7.1% of revenue. Net Income: $1.1 billion, up 13% year-over-year. Cash Flow from Operations: Record $2.8 billion for Q1. ISG Revenue: $10.3 billion, up 12% year-over-year. CSG Revenue: $12.5 billion, up 5% year-over-year. Commercial Revenue: $11.0 billion, up 9% year-over-year. Consumer Revenue: $1.5 billion, down 19% year-over-year. AI Server Orders: $12.1 billion in Q1, with $1.8 billion shipped. Storage Revenue: $4.0 billion, up 6% year-over-year. Shareholder Returns: $2.4 billion returned, including 22.1 million shares repurchased. Q2 Revenue Guidance: $28.5 billion to $29.5 billion, up 16% at midpoint. Full-Year Revenue Guidance: $101 billion to $103 billion, up 8% at midpoint. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dell Technologies Inc (NYSE:DELL) reported a 5% increase in revenue, reaching $23.4 billion, driven by growth across all core markets. Earnings per share increased by 17% to $1.55, growing three times faster than revenue. The company experienced unprecedented demand for AI-optimized servers, with $12.1 billion in orders booked in the first quarter. Dell Technologies Inc (NYSE:DELL) achieved record cash generation for the first quarter, with cash flow from operations reaching $2.8 billion. The company is leading in AI innovation, with significant advancements in AI infrastructure and partnerships with key industry players like NVIDIA and Google. Consumer revenue declined by 19%, indicating challenges in the consumer market. Gross margin decreased by 80 basis points due to a competitive pricing environment, particularly in the CSG segment. The demand environment for traditional servers moderated compared to the previous quarter, with a lower mix of higher-margin North American sales. Operating income rate improvements were partially offset by a more competitive environment and geographical mix challenges. The company faces variability in timing and choices around technology, leading to a non-linear nature of demand and associated shipments. Q: Can you provide insights on the AI server revenue performance and expectations for fiscal '26, given the significant backlog and increased engagement? A: Jeffrey Clarke, Co-Chief Operating Officer, explained that Dell had $12.1 billion in AI server orders in Q1, surpassing all of last year. The backlog is healthy at $14.4 billion, and the five-quarter pipeline continues to grow. Clarke expressed confidence in exceeding the $15 billion target for AI server revenue, emphasizing the complexity and dependencies of customer deployments. Q: How should we interpret the second-half guidance for AI servers, and what are the expectations for ISG and CSG demand? A: Clarke noted that Dell expects to ship $7 billion of AI servers in the first half, with a growing five-quarter pipeline. The enterprise component of the pipeline is expanding faster than the CSP part. Yvonne McGill, CFO, added that while they are optimistic about AI opportunities, they are maintaining a conservative full-year guide due to the dynamic environment. Q: Can you elaborate on the storage and services attach opportunities alongside AI servers? A: Clarke highlighted Dell's expansion of its storage portfolio and data management platforms, which are crucial for AI server nodes. While there has been modest improvement in storage and networking attach, significant progress has been made in deployment and installation services. Clarke emphasized the potential for increased storage attach, particularly in enterprise environments. Q: Are there any assumptions about tariffs in your numbers, and how should we view AI server margins? A: Clarke confirmed that the guidance includes all known tariff impacts, and Dell has successfully navigated these challenges. McGill added that the guide reflects a 10% quarter-over-quarter increase in gross margin dollars, driven by AI server profitability and improvements in the storage portfolio. Q: Is the incremental spend on AI servers affecting traditional server demand, and what drove the strong operating cash flow in Q1? A: Clarke stated that traditional server demand has grown for six consecutive quarters, with expectations for moderation. The market is projected to grow 4-5%, and Dell aims to outperform. Tyler Johnson, SVP, noted that strong cash flow was driven by profitability and working capital improvements, with no one-off impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Marvell Technology Inc (MRVL) Q1 2026 Earnings Call Highlights: Record Revenue and Robust AI ...
Revenue: $1.895 billion, 4% sequential increase, 63% year-over-year growth. Data Center Revenue: $1.44 billion, 5% sequential growth, 76% year-over-year growth. Enterprise Networking Revenue: $178 million. Carrier Infrastructure Revenue: $138 million. Consumer Revenue: $63 million, 29% sequential decline. Automotive and Industrial Revenue: $76 million, 12% sequential decline. GAAP Gross Margin: 50.3%. Non-GAAP Gross Margin: 59.8%. GAAP Operating Expenses: $682 million. Non-GAAP Operating Expenses: $486 million. GAAP Operating Margin: 14.3%. Non-GAAP Operating Margin: 34.2%. GAAP Earnings Per Share: $0.20. Non-GAAP Earnings Per Share: $0.62, 158% year-over-year growth. Cash Flow from Operations: $333 million. Stock Repurchases: $340 million. Total Debt: $4.2 billion. Cash and Cash Equivalents: $886 million. Second Quarter Revenue Guidance: $2 billion at midpoint, 57% year-over-year growth. Second Quarter Non-GAAP Gross Margin Guidance: 59% to 60%. Second Quarter Non-GAAP Earnings Per Share Guidance: $0.62 to $0.72. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marvell Technology Inc (NASDAQ:MRVL) delivered record revenue of $1.895 billion for the first quarter of fiscal 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth. The data center end market achieved record revenue of $1.44 billion, growing 5% sequentially and 76% year-over-year, driven by robust AI demand. Marvell significantly increased stock repurchases in the first quarter, buying back $340 million, up from $200 million in the prior quarter. The company announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, providing additional flexibility in capital allocation strategy. Marvell is forecasting second-quarter revenue of $2 billion at the midpoint of guidance, representing 57% year-over-year growth and setting another record revenue level. The consumer end market saw a 29% sequential decline in revenue, primarily driven by seasonality and gaming demand. The automotive and industrial end market experienced a 12% sequential decline in revenue, with industrial order patterns being lumpy. GAAP operating expenses were $682 million, including stock-based compensation and other costs, impacting overall profitability. Non-GAAP gross margin was 59.8%, slightly below expectations, partly due to the lower-margin custom silicon business. There are ongoing macroeconomic uncertainties that could impact future growth, requiring close monitoring of the broader environment. Q: What is the direction of content in Marvell's next-generation programs, and are you exclusive on these 3-nanometer XPUs? A: Matt Murphy, CEO, clarified that Marvell is the incumbent for the current generation of AI XPUs and has secured 3-nanometer wafer and advanced packaging capacity for 2026. While acknowledging that customers may pursue multiple paths to meet their requirements, Marvell expects its custom silicon revenue to continue growing on a multiyear, multigenerational basis with its customers. Q: How does Marvell plan to support a broader customer base beyond its initial engagements? A: Matt Murphy, CEO, stated that Marvell has the capacity to expand its portfolio and engagements, supported by increased R&D spending and reallocation of resources towards data center and AI opportunities. Marvell is well-positioned to support multiple engagements across various programs, which will be detailed at their upcoming AI investor event. Q: Can you discuss Marvell's positioning in 200 gig SerDes technology and the relationship with NVIDIA? A: Matt Murphy, CEO, emphasized Marvell's best-in-class SerDes technology, with leadership in 200 gig and 400 gig per lane demonstrations. Regarding the NVLink fusion partnership with NVIDIA, Murphy highlighted the complementary role of custom solutions and Marvell's engagement in enabling customers to leverage NVIDIA's rack scale solutions. Q: Can you break down data center revenue and provide insights into AI business growth? A: Matt Murphy, CEO, noted that AI has become the majority of Marvell's data center revenue and is on track to become the majority of the company's overall revenue. While not providing specific quarterly breakdowns, Murphy indicated that AI continues to be the fastest-growing portion of their data center business. Q: What are Marvell's expectations for the second half of the year, particularly for custom and enterprise businesses? A: Matt Murphy, CEO, expects continued growth across the board, driven by AI demand and recovery in enterprise networking and carrier infrastructure. While not providing specific quarterly guidance, Murphy expressed optimism for fiscal 2027, supported by articulated growth drivers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
