7. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Shareholders In Q1 2024: 87
Marvell Technology, Inc. (NASDAQ:MRVL) sells signal processors, networking equipment, and other associated hardware products. The firm’s first quarter results, which saw it beat analyst revenue estimates of $1.15 billion by $10 million but miss EPS estimates of -$0.24 by posting -$0.25 impressed Needham which set a Buy rating and a $95 share price target. Needham’s decision was based on strong performance by Marvell Technology, Inc. (NASDAQ:MRVL)’s data center division, as well as the belief that full year AI revenue can now sit at $1.6 billion – higher than the previous estimate of $1.5 billion.
For their first quarter of 2024 shareholdings, 87 out of the 933 hedge funds tracked by Insider Monkey were Marvell Technology, Inc. (NASDAQ:MRVL)’s stakeholders. Rajiv Jain’s GQG Partners owned the most valuable stake which was worth $533 million.
Marvell Technology, Inc. (NASDAQ:MRVL) has a forward price to earnings ratio of 53.48, which is more than twice the market’s 21. CEO Matt Murphy was quite optimistic about his firm’s AI plays during Marvell Technology, Inc. (NASDAQ:MRVL)’s first quarter of fiscal 2025 earnings call where he shared:
The outperformance was driven by strong demand from cloud AI applications for our electro-optics portfolio, including PAM, DSPs, TIAs and drivers as well as our ZR data center interconnect products. Data center revenue grew 87% year-over-year and 7% sequentially, with double-digit growth from cloud more than offsetting a higher than seasonal decline in revenue for enterprise on premise data centers. Strong revenue growth was driven by cloud AI as well as standard cloud infrastructure. In addition to strong contributions from our market leading electro-optics products, we also benefited in the first quarter from the initial shipments of our custom AI compute programs. Turning to the second quarter of fiscal 2025, we expect our overall data center revenue to grow in the mid-single digits sequentially on a percentage basis as our custom AI silicon continues ramping.
I’m very pleased with our results and projected guidance for our data center end market. Our continued growth in data center and AI in particular is being driven by our leading portfolio of connectivity and custom compute products. Starting with our interconnect solutions. Our 100 gig per lane, 800 gig PAM products are the primary interconnect enabler for state-of-the–art AI deployments today, and customers have already started qualifying our first to market next generation 200 gig per lane 1.6T solutions. Our 1.6T solutions are poised to enable the next generation of AI accelerators. We are seeing similar success with our DCI products with 400 gig ZR shipping high volume, strong interest for our next generation 800 gig products and an expanding DCI customer base with design wins at multiple new data center customers.
