Marvell Technology Hits Record High Ahead Of Q3 Earnings On AWS Partnership Boost: Retail Eyes More Upside

Shares of Marvell Technology Inc. rose over 1% in midday trading on Tuesday to hit an all-time high of $98.72 ahead of its third-quarter earnings report due after the closing bell. 

The jump comes after the company announced on Monday that it would expand its strategic partnership with Amazon Web Services (AWS) through a five-year, multi-generational agreement. 

Marvell is among the smaller semiconductor companies benefiting from the surge in artificial intelligence (AI) spending, along with bigger players like Nvidia and Advanced Micro Devices (AMD).

According to Oppenheimer, the news helps alleviate persistent speculation about the company's share loss to its market peers.

Not only does Marvell have Amazon as its client, but Dell also accounts for a significant portion of its revenue. 

According to CFRA research, Dell’s weaker-than-anticipated forecast, which led to a 12% drop in the PC chip-making giant’s stock last week, should not impact Marvell’s bottom line. 

Analysts anticipate Marvell to grow in the market in custom AI chips for hyperscalers, along with a surge in demand for its high-speed networking chips that power connections within those clusters.

Wall Street expects earnings of $0.4 per share on revenue of $1.45 billion for Q3 2024.

Evercore ISI raised its price target on Marvell to $122 from $98, maintaining an ‘Outperform’ rating ahead of the third-quarter results. 

The brokerage expects year-over-year growth to peak in the coming months, with earnings forecasts improving and customer feedback described as "encouraging."

Marvell Technology Sentiment and Message Volume on Dec 3 as of 11:55 a.m. ET | Source: Stocktwits

On Stocktwits, retail activity around the Marvell remained upbeat, with sentiment in the ‘bullish’ (60/100) zone and message volume remaining ‘extremely high’ (86/100).

Investors on the platform expect upbeat guidance from the chip maker when it reports October fiscal quarter results. 

The stock has gained 66% so far this year. 

For updates and corrections email newsroom[at]stocktwits[dot]com.<

Read also: Credo Technology Hits ‘Inflection Point,’ Stock Eyes Record High on Earnings Beat: Retail’s Plugged In