JPMorgan Chase said that Nvidia is not the only chip manufacturer worth paying attention to, and the company recommended that clients also pay attention to Marvell Technology. Ahead of Marvell’s earnings Thursday afternoon, analyst Harlan Sur reiterated an overweight rating on the stock. He set a $90 price target on the stock, which suggests 30.7% upside potential from Monday’s closing price. JPMorgan sees second-quarter results and forward guidance in line with consensus forecasts. Revenue in the final three months of the year is expected to rise 12% sequentially due to data center expansion. According to Sur, Marvell’s high-profile artificial intelligence application specific integrated circuit (ASIC) project should provide fuel for its revenue recovery. “We see the team’s AI ASIC/optical/cloud/storage areas continuing to drive solid growth, and with the current 5G/enterprise business being stable, we believe the company will continue to execute on its LT growth plan and should drive above industry growth. The analyst noted that the demand backdrop for Marvell’s cyclical business remains subdued, leading to a downward trend in gross margins in the second half of 2024, with the stock rising just 15.5%, lagging behind the S&P 500 and VanEck Semiconductor ETF’s 39.3%. increase.
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