• Fri. Apr 19th, 2024

Marvell Technology Earnings Preview: Challenges and Opportunities in Data Center Segment as AI Optics Boost Company’s Growth

BySamantha Johnson

Mar 7, 2024
Marvell Technology’s Q4 Earnings: Focus on Data Center Segment Performance

Marvell Technology (NASDAQ:MRVL) is set to release its Q4 earnings results on March 7th, with a focus on the challenges faced in its end markets and data center segment. The consensus EPS Estimate is $0.46 (flat Y/Y), while the consensus Revenue Estimate is $1.42B (flat Y/Y).

Marvell has been ranked as number one in Citi Research’s specialty semiconductor coverage for its positive stock setup in 2024 due to continued growth in Artificial Intelligence (AI) optics, custom Application-Specific Integrated Circuits (ASIC), AI project sales, and improvement in non-cloud markets like enterprise networking and carrier. However, declining IT spending and reduced demand for data storage systems have affected the firm’s growth performance.

The importance of Marvell’s Data Center segment cannot be overstated, as it is crucial for the company’s high growth potential and ability to recover faster than other segments. Investors are optimistic about robust results in Marvell’s data center unit, expected to grow by more than 30% and become the firm’s largest segment. Billionaire Larry Robbins’ Glenview Capital Management recently took new positions in the semiconductor firm.

Marvell exceeded expectations in its Q3 results, benefiting from AI. However, there are concerns about weaker performance in the enterprise and carrier segments. Shares in the company have risen by 33.2% since the beginning of the year. Over the past two years, MRVL has beaten EPS estimates 75% of the time and revenue estimates 88% of the time.

Investors will closely watch Marvell’s upcoming earnings report for insights into its performance and future outlook after recent upward revision of EPS estimate by one while revenue estimate seen one downward revision within last three months period.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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