Latest news with #Susquehanna
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer and Wall Street Are Watching Marvell Technology (MRVL)
We recently published a list of . In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other stocks on Jim Cramer and Wall Street's radar. On May 2, Cramer said that he would buy the stock of Marvell Technology, Inc. (NASDAQ:MRVL), as he commented: 'It's, you know, its stock is the same price as it was before it got into AI. This is ridiculous. It's below right around where Matt Murphy, the CEO, bought stock back, bought it personally. I would buy the stock of Marvell, and I'd buy it on Monday.' An assembly line in a semiconductor factory, with workers at their stations. Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure as it focuses on system-on-a-chip designs that integrate analog, mixed-signal, and digital processing. The company's offerings include ethernet products, processors, custom chips, interconnect and storage solutions, and high-speed data transfer components. On May 27, Susquehanna reduced its price target on the shares to $90 from $110 while maintaining a Positive rating. The firm expects results to meet expectations but sees more uncertainty around T2 volume rollout. Sentiment around XPUs and Inphi has also declined after the delayed Investor Day. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Quant Traders That Dominate US Options Market Move in on Europe
(Bloomberg) -- The option market makers that dominate US trading are taking a bigger share of volume in Europe. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move NYC Congestion Toll Brings In $216 Million in First Four Months While the tariff-driven market turmoil in April boosted trading on both sides of the Atlantic, Europe remains far behind. Even with talks about the end of 'US Exceptionalism' and investment flows directed away from the country, Europe lacks the abundant retail demand that drives a robust, relatively transparent options market in the US. But despite the differences, in both places market makers are pushing in to service customers directly. More nimble, with more sophisticated quant models than traditional banks and comfortable hedging across markets, they already held 30% of the open interest in Euro Stoxx 50 Index listed options on Eurex in 2022, an Acuiti report found at the time. Their share is estimated to have grown further since then. 'Market makers have long been dominant players in the US options market, consistently making up the top three participants by volume,' said Josh Ward, an equity-derivatives salesman at Susquehanna International Group. 'This trend is now emerging in Europe.' While market makers have historically maintained a strong presence on screen, they're increasingly capturing share in off-screen volumes in Europe. Also known as principal trading firms, they're making up two of the top three participants in block trades on Eurex so far this year, Ward said. 'Principal trading firms now have very established relationships with the buy-side,' said Piebe Teeboom, secretary general of the European Principal Traders Association. 'Within the options space, the trend of buy-side firms seeking out PTFs on off-screen blocks is only likely to increase given how competitive those firms are on pricing.' It raises the question of how much the presence of quant firms can encourage more overall volume in Europe, especially from the smaller, non-institutional traders that have driven US growth. But they still face challenges in the region. A big one is the frequency of late cross trades that aren't initially visible to the wider market — where a placeholder is made at 6 p.m. UK time and the price is disclosed at 10 p.m. That reflects, at least in part, traders' concerns about information leaking out. The intensifying competition in Europe is a boon for buy-side clients, who despite stagnant volumes are able to trade big option blocks on index and single stocks. On any given day, several billion euros in notional value could be sourced on Euro Stoxx 50 options in a single ticket. 'The rise of dedicated market makers is a net positive for investors as it leads to more competitive pricing across asset classes, which our clients ultimately benefit from as end investors,' said Stefano Amato, senior fund manager at M&G Investments. 'It's also prompting banks to become more competitive and/or focus on certain segments where they have a particular strength, which again in aggregate contributes to bringing down the overall cost of trading for market participants.' While the European market has become increasingly competitive, some buy-side firms view the relationship with banks holistically: They're working with them across other asset classes, hence keeping a big portion of the equity-derivatives business with them. But daily options flow has always been highly commoditized and price sensitive, so even the most loyal clients may shift more orders to the market makers. Some market participants have noted that option auctions are at times so competitive that pricing becomes inverted, with some market makers willing to offer below the bid in order to win the business. 'We attribute the expanding footprint of market makers' direct client trading desks to their ability and willingness to consistently quote tighter spreads and larger sizes for their clients,' said Ward. 'Their conviction to do this is supported by significant resources, including advanced technology, balance sheet capital, specialist back-end infrastructure and larger, more experienced trading teams dedicated to their respective areas of market expertise.' The shift in options flow to firms like Optiver and Susquehanna is an extension of a gradual trend since the Great Financial Crisis of some banks focusing on more profitable businesses such as Quantitative Investment Strategies and light exotics. While they compete with market makers for buy-side clients, they still work together to offset risk. 'We continue to work closely with banks and see our role as complementary to the services they provide to their clients and to us,' said Edward Monrad, head of corporate strategy for EMEA at Optiver. 'There's still plenty of room for growth as well.' 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Yahoo
5 days ago
- Business
- Yahoo
Susquehanna Raises Broadcom (AVGO) Price Target, Keeps Buy Rating
On May 29, Susquehanna raised the price target on Broadcom Inc. (NASDAQ:AVGO) from $250 to $280, keeping its Buy rating on the stock. Christopher Rolland from Susquehanna increased the price target on AVGO after reviewing the company's custom silicon AI chips prospects, fueled by the growing AI infrastructure market. Rolland sees the continuation of AI networking momentum and solid core semiconductor business to be key for Broadcom. A technician working at a magnified microscope, developing a new integrated circuit. The analyst expects Broadcom to deliver earnings in line with or slightly better than expectations, driven by ongoing AI momentum and further optimization of its VMware portfolio. Wall Street expects the company to post Q2 2025 earnings to grow by 43% year-over-year to $1.57 per share, while revenue is estimated to rise about 16% to $14.65 billion. The company is scheduled to report its quarterly results on June 5, 2025. The demand environment remains strong, especially fueled by hyperscalers such as Meta increasing their AI investments. Rolland mentioned that this bodes well for Broadcom's networking and custom silicon segments. Moreover, Broadcom's competitive positioning in DSPs and PCIe retimers, along with its robust ASIC momentum, supports a positive outlook. The analyst believes that the transition of VMware customers to subscriptions will provide a sustained boost, supported by Broadcom's integration strategy. Broadcom Inc. (NASDAQ:AVGO) is a global technology firm that designs and manufactures various semiconductors, enterprise software, and security solutions. The company has two segments including semiconductor solutions and infrastructure software. While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Susquehanna Reaffirms Buy on Coherent (COHR) Amid Strong Outlook
On May 28, Susquehanna analyst Christopher Rolland reaffirmed a Buy rating on Coherent Corporation (NYSE:COHR) with an unchanged price target of $100. Rolland's bullish view is supported by the company's strong competitive positioning and encouraging financial guidance. On the fundamental level, the analyst remains confident about Coherent's continued investments in advancing its technologies, such as optical circuit switches and transceivers, which are expected to support long-term growth. He further emphasized the company's efforts to improve cash flows and reduce debt. Coherent is targeting significant market opportunities, including a $44 billion Serviceable Available Market (SAM) in the Data Center & Communications sector and a $23 billion SAM in the Industrial sector by 2030. According to Rolland, the company now views these two areas as its primary focus, aligning with its long-term growth strategy. Rolland is also encouraged by Coherent's financial targets for FY 2025, which include projected revenue growth of 23%, adjusted gross margins of 38%, and adjusted operating margins of 17.8%. Furthermore, the company is expected to achieve a compound annual revenue growth rate (CAGR) of 10% to 15% over the next three to four years. Coherent Corp. (NYSE:COHR) is a developer and manufacturer of engineered materials, networking products, optoelectronic components, and optical and laser systems for the industrial, communications, electronics, and instrumentation markets. The company holds a strong position in the optical communications market, particularly with its innovative solutions for data centers, such as datacom optical transceivers. While we acknowledge the potential of COHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COHR and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Time of India
6 days ago
- Business
- Time of India
Nvidia first-quarter earnings results: Nvidia beats estimates as revenues rise 69% from a year ago
Nvidia announced impressive first-quarter results on Wednesday, reporting a 69% year-over-year increase in revenue, reaching $44.1 billion, surpassing Wall Street's forecast of $43.28 billion. Tired of too many ads? go ad free now However, the company's net profit of $18.78 billion was slightly below the anticipated $19.49 billion. Earnings per share came in at 73 cents, an increase from 61 cents a year prior. Shares of the California-based chip manufacturer rose more than 4% in after-hours trading. Nvidia finished the regular trading session as the second-most valuable company in the world, trailing only Microsoft, with a market capitalization of $3.3 trillion. Nvidia's stock climbed over 3% to $135.36 a day before the company was due to release its earnings report on Wednesday. Last year, the Biden administration's export controls limited Nvidia's ability to sell its advanced H20 AI chip in China, a market that accounted for 13% of the company's revenue in 2024. Nvidia has warned that these restrictions could lead to $5.5 billion in charges, with CEO Jensen Huang estimating a $15 billion loss in potential sales. Analysts at Susquehanna estimated the curbs cost Nvidia about $1 billion in sales in the final three weeks of the April quarter. Wedbush analysts projected a quarterly hit between $3 billion and $4 billion. Gross margins were also expected to take a hit, forecasting an 11 percentage point drop to 67.7 per cent, partly due to write-downs related to H20 shipments, which could reduce margins by as much as 12.5 per cent. Now that Nvidia has released its financial results for the first quarter of 2026, all eyes will be on how the company navigates the twin challenges of regulatory restrictions in China and rising AI infrastructure costs. Analysts are watching closely to see whether Nvidia can extend its streak of beating Wall Street expectations for an eighth consecutive Nvidia's strong positioning, 2025 has been volatile for chipmakers. Nvidia's share price has largely stalled after doubling in 2023. NVIDIA is set to distribute its upcoming quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders registered as of June 11, 2025.
