Nvidia isn’t the only chipmaker to watch, according to JPMorgan, which also advised clients to keep an eye on Marvell Technology. Analyst Harlan Sur reiterated his overweight rating on Marvell shares ahead of the company’s earnings release Thursday afternoon. He is maintaining a $90 price target, implying 30.7% upside from Monday’s close. JPMorgan expects second-quarter results and guidance to be in line with consensus forecasts. Revenue growth is expected to rise 12% quarter-on-quarter in the final three months of the year as data center expansion continues. Marvell’s high-profile artificial intelligence application-specific integrated circuit (ASIC) programs should drive the revenue recovery, Sur said. “We see the team’s AI ASIC/Optical/Cloud/Storage segments continuing to deliver solid growth while the current 5G/Enterprise businesses stabilize, and we believe the company continues to execute on its LT growth initiatives and should deliver above-industry growth over the medium/long term,” Sur wrote in a research note on Wednesday. The analyst noted that demand for Marvell’s cyclical businesses remains subdued and gross margins will trend lower in the second half of the year. Shares are expected to rise just 15.5% in 2024, lagging both the S&P 500 and the VanEck Semiconductor ETF, which gained 39.3%.
