MRVL Stock Jumps Overnight: MU, QCOM Boost Outweigh CFO’s Share Sale

Micron’s upbeat Q3 report and Qualcomm's ambitious AI chip sales target boosted the sentiment across the semiconductor segment.

• Micron reported record numbers for its fiscal third quarter and indicated that rapid growth will be sustained over the next few years.
• Qualcomm projected that its data center business would generate annual sales of $15 billion by 2029, up from a projected $5 billion in fiscal 2027.
• Retail sentiment for MRVL remained ‘bearish’; the stock is down 15% from its record high earlier this month. 

Marvell Technology, Inc.’s stock rose 4.3% in overnight trading late Wednesday in a sympathy rally following Micron’s strong quarterly report and an upbeat forecast from Qualcomm. 

Micron reported record numbers for its fiscal third quarter – revenue rose 346% year over year, and gross margin more than doubled to 84.9% – and indicated that rapid growth will be sustained over the next few years.

Shares of major semiconductor stocks, including memory heavyweights SanDisk and Western Digital and legacy chipmakers such as Intel and Advanced Micro Devices, gained after Micron’s report.

Meanwhile, Qualcomm on Wednesday projected that its data center business would generate annual sales of $15 billion by 2029, up from a projected $5 billion in fiscal 2027.

Qualcomm also said it expects $40 billion in revenue from chips outside its smartphone stronghold by 2029, up from previous estimates of $22 billion, with handsets making up ​only a third of its chip revenue by then. 

Earlier in the day, Qualcomm ​said Microsoft and Meta Platforms will use its new AI chips and that it will make custom chips for two other unnamed "hyperscalers."

MRVL Catalysts

The developments underscore that demand for advanced chips would remain elevated in the coming years. Marvell, which has a wide portfolio of offerings, including networking chips, custom AI accelerators, optical and silicon photonics components, and telecom semiconductors, is a key beneficiary for the AI-driven up cycle in data center hardware.

In other developments, Marvell CFO Daniel Durn sold company shares earlier this week. Durn sold 2,250 common shares for $632,273 on Tuesday and holds 6,902 shares after the transaction, according to an exchange filing.

MRVL Stock Move, Retail View

Shares of MRVL have surged 225% year to date, with a big boost coming after Nvidia’s $2 billion investment in the company in March. Last month, Nvidia CEO Jensen Huang further boosted Marvell’s positioning by saying he expects the company to join the trillion-dollar market-cap club.

MRVL stock has slid about 15% since its record high on June 3. The company’s market capitalization was $242 billion as of Wednesday.

On Stocktwits, retail sentiment for MRVL remained ‘bearish,’ unchanged from the previous day. 

“$MRVL buy the dip. The story hasn't changed. Still a $1 trillion company,” said a trader. 

Another wrote, “The market just handed investors another reset” and named Marvell, Nebius, Applied Optoelectronics, Micron and Rocket Lab as stocks to keep on the radar.

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