📈 Marvell Technology: artificial intelligence as a growth engine! 🚀

Marvell Technology $MRVL specializes in the development of advanced chips for data center, networking, storage and increasingly for artificial intelligence applications. The company has delivered great results and set the bar high. The stock responded with a steep rise, and for good reason.

🔑 Highlights from Q3 results:
Revenue: $1.52 billion (vs. estimate of 1.45 billion, +7% YoY 📊)
Earnings per share (EPS): $0.43 (vs. expected $0.41)
Gross margin (non-GAAP): 60,5 %

Company projects a strong fourth quarter:
Estimated revenue: $1.8 billion (+/- 5%, or +26% year-over-year!)
Earnings per share (EPS): $0.59 (vs. estimate of $0.52)

The main driver of growth is the huge demand for artificial intelligence (AI) and data center chips . CEO Matt Murphy summed up the situation:
"Strong demand for our AI solutions drove sales well above expectations. We look forward to a strong finish to the year and dynamic growth in fiscal 2026."

This optimism is supported by the following factors:
💡 Custom chips (ASICs): Marvell delivers customized solutions that underpin the growth of AI.
📡 Electro-Optics: This segment has seen double-digit growth for several quarters in a row.
🤝 Collaboration with tech giants: Marvell has expanded its partnership with Amazon (AMZN), providing chips for data centres and AI applications (e.g. Trainium 2).

📊 The future of AI and Marvell
Marvell expects revenue from AI in the year 2024 to exceed the original estimate 1.5 billion USD, with continued growth. Analysts estimate that in 2026 AI revenues will exceed USD 2.5 billion. 🤖

Another analyst adds: "Marvell delivered better results and outlook due to growing demand for AI and data centers. Their electro-optical and ASIC solutions are now experiencing a literal explosion."

📈 What's the market saying?
Marvell shares are up more than 20 % to $118, with analysts raising their price target. For example, the firm of B. Riley moved the target to $135 with a rating of "Buy". All of this makes Marvell one of the hottest players in the AI sector. 🔥

The company's results confirm that AI is driving growth in the tech sector. Companies like Marvell, Nvidia and Broadcom are playing a vital role in transforming the market! 🌐

I bought the stock at 74$ and I am very happy with the company.
What do you think of Marvell Technology?