After its most recent financial results and guidance strengthened Wall-Street's optimism about the company's position in the expanding artificial intelligence market, Marvell Technology (MRVL, Financial) shares rose 12% in premarket trade Wednesday. Approaching 52-week highs, the semiconductor company—whose stock has climbed around 14% in the past month and 44% over the past six months—remains one of the hotter stocks on Reddit. With AI revenue expected to surpass its previous $1.5 billion estimate by "hundreds of millions of dollars," Needham analyst N. Quinn Bolton underlined Marvell's solid outlook.
He ascribed this expansion to rising demand from two big consumers, generally thought to be Google (GOOG, GOOGL) and Amazon (AMZN, Financial). As bespoke custom and electro-optics usage speeds up in 2025, Bolton predicts that Amazon will propel much of the expected benefit. Competitor Broadcom (AVGO, Financial) also saw a bump, showing more general semiconductor industry confidence. Wall Street sees Marvell as a significant benefactor of the "AI gravy train," establishing itself as a leader in tailored AI solutions for big IT firms as AI spending keeps rising.
