marvel Shares rose 20% on Friday as the company posted strong guidance, expecting to beat earnings and expect strong artificial intelligence demand to continue.
The company reported adjusted earnings of 80 cents per share for the quarter, beating the 79 cents per share expected by analysts surveyed by LSEG. The company reported fourth-quarter revenue of $2.2 billion, beating expectations of $2.1 billion.
“Look at the results we’re leading. Look at our outlook for this year. Look at our outlook for next year. Can you see me blinking? You can’t,” CEO Matt Murphy told analysts on an earnings call.
Murphy said in the release that the company expects year-over-year sales growth to accelerate in each quarter of 2027.
For the first quarter of 2027, the chipmaker expects revenue of $2.4 billion (+/-5%). Wall Street had expected $2.27 billion.
The company’s data center revenue for fiscal year 2026 exceeded $6 billion, an increase of 46% from the previous year.
Marvell completed its acquisitions of Celestial AI and XConn Technologies last month. Murphy told analysts on an earnings call that the acquisition is expected to add $250 million to total revenue in fiscal 2028.
The company expected fiscal 2028 sales to be $14.48 billion and earnings per share to be $5.35.
Analyst reaction to the results was generally positive.
“Overall, we are impressed with the strong multi-year revenue outlook and the diversity of customer program expansion,” JPMorgan analyst Harlan Sarr said in a note Friday.
The bank reiterated its overweight rating on the stock and raised its price target to $135 from $130.
CNBC’s Kristina Partinevelos contributed to this report.
Marvell’s daily stock price chart.
