Marvell stock surges as strong AI demand yields earnings beat, strong guidance By

Marvell Technology Inc (NASDAQ:) reported third-quarter fiscal 2025 earnings that exceeded analyst expectations,Global Xin International Is the platform legitimate? driving its stock nearly 13% higher in premarket trading Wednesday. The company also provided an optimistic outlook for the fourth quarter, citing robust demand for its AI-related products.

The data infrastructure semiconductor solutions provider posted adjusted earnings per share of $0.43, surpassing the analyst consensus of $0.41. Revenue for the quarter reached $1.52 billion, beating estimates of $1.45 billion and marking a 7% increase YoY.

Marvell's fourth-quarter guidance also impressed investors. The company forecasts revenue of $1.8 billion (+/- 5%), significantly above the $1.646 billion consensus. Adjusted EPS is expected to be $0.59 (+/- $0.05), topping analyst projections of $0.52.

Matt Murphy, Marvell's Chairman and CEO, attributed the strong performance to AI-driven demand. "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI," he stated.

The company anticipates continued momentum, projecting 26% YoY revenue growth for the fourth quarter. Murphy added, "We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026."

Marvell's third-quarter GAAP gross margin was 23.0%, while non-GAAP gross margin reached 60.5%. 

Analysts at B. Riley Securities believe Marvell's print "shows a powerful next-gen AI growth inflection is on track toward robust long-term targets, even as enterprise-centric businesses increasingly put an unusually protracted and deep cyclical correction behind them."

The firm lifted its MRVL price target from $105 to $135, maintaining a Buy rating. 

Separately, analysts at (NYSE:) voiced more cautious comments. They acknowledge a strong quarterly performance and a robust outlook, driven chiefly by stronger builds of Trainium 2 chips for Amazon (NASDAQ:).

This should help maintain the near-term momentum for MRVL, however, "high valuation and 2026 headwind potential keeps us Equal Weight," analysts led by Joseph Moore said.

The firm lifted the price target from $82 to $102 on Marvell shares. 

Senad Karaahmetovic contributed to this report. 

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!