Marvell Technology shares surged 12.7% in pre-market trading to $243.48 on Tuesday, extending gains after the company announced a binding agreement with Google to develop custom semiconductor products.
The deal includes a warrant allowing Google to purchase up to 58.97 million Marvell shares at $206.58 each. Analysts at Stifel reiterated a Buy rating and raised their price target to $350, projecting the company will exceed its July quarter revenue estimate of $2.70 billion by roughly 11.7% sequentially. UBS maintained its Buy stance, while TD Cowen increased its target to $225 from $200 on August 17, citing durable market share in optical digital signal processors. Overall price targets among analysts range from $225 to $400.
Options markets priced in implied volatility of about 14% around the August 27 earnings report. The data center segment contributed 76% of April quarter revenue, driven by optical interconnects and the ramp of the XPU program.
CEO Matthew Murphy sold approximately $1.77 million in shares on August 17 under a pre-arranged 10b5-1 trading plan. The broader market showed modest gains, with the S&P 500 up 0.3% and the Nasdaq rising 0.3%. Semiconductor peers Semtech and Broadcom also traded higher.
