Marvell Technology, Inc. (MRVL) had a solid Wednesday, with shares climbing after the data infrastructure and semiconductor company delivered earnings results that topped Wall Street's expectations.
The Numbers That Matter: Marvell posted quarterly earnings of $0.76 per share, beating the analyst consensus estimate of $0.73. Revenue came in at $2.075 billion, edging out the $2.068 billion that analysts were expecting. Nothing dramatic, but in this market, a beat is a beat.
Looking ahead, Marvell's fourth quarter guidance hit the mark analysts were hoping for. The company projects adjusted earnings-per-share between 74 cents and 84 cents, right in line with the 78-cent consensus. Revenue is expected to land between $2.09 billion and $2.31 billion, with analysts expecting $2.178 billion.
The Big Move: Here's where things get interesting. Marvell is acquiring Celestial AI, an AI computing company, for $3.25 billion. The deal consists of $1.0 billion in cash and approximately 27.2 million shares of Marvell common stock valued at $2.25 billion. It's a significant bet on the AI infrastructure space.
Analyst Reactions: Wall Street wasted no time adjusting their outlook on the stock. Morgan Stanley analyst Joseph Moore raised his price target to $112 from $86 while maintaining an equal weight rating. TD Cowen analyst Joshua Buchalter bumped his target to $100 from $90, keeping a hold rating. JPMorgan analyst Harlan Sur lifted the firm's price target to $130 from $120 with an overweight rating, while Barclays analyst Tom O'Malley raised his target to $105 from $80 with an equal weight rating.
Stock Movement: Shares of Marvell were up 5.17% and trading at $97.69 at the time of publication.
