Marvell Technology stock: what analysts expect ahead of earnings

Marvell Technology stock has tumbled sharply in recent weeks, mirroring the broader selloff across leading semiconductor stocks. After soaring to a record high of $329.48, the shares have fallen by more than 40%. 

Despite the steep correction, Wall Street analysts remain overwhelmingly bullish on the company, with investors now turning their attention to its upcoming earnings report for fresh catalysts and guidance.

Analysts are bullish on the Marvell Technology stock

Data compiled by MarketBeat shows that most analysts are highly bullish on the MRVL stock. The consensus target for the stock is $245, representing a 25% upside from the current level.

KeyCorp’s John Vinh has become the most bullish analyst with a target price of $400. Bank of America’s Vivek Arya hiked the target from $240 to $365, while Stifel has a target of $350. Some of the other banks with a bullish outlook for the company are Cantor Fitzgerald, B. Riley, and Needham. 

Nvidia’s Jensen Huang has also chimed in, noting that the company will once be worth $1 trillion. This explains why Nvidia invested $2 billion in the company.

These analysts have different reasons for being bullish on the company, but the underlying theme is that it is among the best beneficiaries of the ongoing artificial intelligence boom. 

Its top clients are also continuing to spend big over time. For example, in their recent earnings releases, companies like Amazon, Microsoft, Google, and Meta Platforms hinted that they will continue spending. In total, these firms will spend over $700 billion in capex this year.

MRVL earnings growth to continue

Wall Street analysts believe that Marvell Technology’s revenue growth will continue growing this year. The average estimate is that its revenue jumped by over 30% in the last quarter to over $2.7 billion. 

They also expect this growth to continue this quarter, moving up by 45% to $3.02 billion. For the year, analysts expect the results to show that revenues jumped by 40%, followed by 45% next year. As such, if this revenue growth continues, the revenue will jump from $11.5 billion this year to over $30 billion by 2030.

Marvell’s profits are also continuing to grow, with the earnings-per-share (EPS) moving from 67 cents to 93 cents.

READ MORE: Marvell stock could soar 410% and reach a $1 trillion valuation, Jensen Huang says

The main issue with Marvell, which even analysts admit, is that it is not a cheap company. For one, it trades at a forward price-to-earnings ratio moved to 47, higher than the sector median of 23. This multiple is also higher than the five-year average of 37. As a result, the company will need to continue publishing strong earnings to justify the valuation.

Marvell stock price technical analysis

MRVL stock chart | Source: TradingView

The MRVL stock peaked at $329 earlier this year to a low of $155 in July. This retreat was slightly above the 61.8% Fibonacci Retracement level and the 200-day Exponential Moving Average (EMA).

It has now moved above the 50% retracement level. This retracement is drawn by connecting the lowest level last year and its all-time high. It has moved above the Strong, Pivot, Reverse level of the Murrey Math Lines.

Therefore, there is a likelihood that the stock will continue rising ahead of its earnings later this month. If this happens, it may jump to the Major S/R pivot point of $250.