On December 1st, before the market opens, Marvell Technology (NASDAQ:MRVL) will release its third-quarter earnings data. The estimated revenue is $1.56 billion, up 28.9% year over year, and the estimated earnings per share are $0.59, up 37.2%. MRVL stock slightly rose up.
There have been 1 upward and 22 negative revisions to EPS projections over the past three months. There have been 21 decreases and 2 increases in revenue predictions. The stock has fallen by half in 2022, along with much of the semiconductor industry, but Marvell has had a double-digit increase in the month before the Q3 release, helped by Warren Buffett’s investment in Taiwan Semiconductor (TSM) and bullish statements from Wall Street.
Marvell Technology Stock Outlook
Chris Caso, an analyst at Credit Suisse, said that he thinks the semiconductor industry is in a period of long-term, sustainable growth. He said that artificial intelligence (AI), cloud computing, and the automotive industry are all driving growth that is more diverse than in the past. As his top pick, Caso chose Marvell (NASDAQ:MRVL).
In the meantime, the company is trying to wind down its R&D activities in China because of trade worries. Even though sales have gone up for nine consecutive quarters in a row, Marvell gave Q3 guidance numbers for the current quarter that were lower than expected.
However, Credit Suisse thinks Marvell (NASDAQ:MRVL) might bring in an extra $1.175 billion in revenue for the fiscal year 2024 since it is less dependent on market growth than other companies and is instead driven by content and new prospects.
Although Marvell may perform better than most, SA contributor Stephen Simpson thinks that projections for 2023–2024 are too optimistic and that, if/when management signals a slowdown in growth expectations, “there could be downside risk to sell-side estimates and sentiment over the next two quarters.” In the last two years, MRVL’s earnings per share and sales have always been better than expected.
Featured Image: Megapixl @ Michaelvi
Author Jowi Kwasu 
