Why Marvell Technology Rallied in May

Source Domain: www.fool.com

Shares of Marvell Technology (MRVL 15.74%) rallied 24.1% in May, according to data from S&P Global Market Intelligence.

Marvell had a busy month, reporting first-quarter earnings toward the end of May. Additionally, Marvell received a small investment from Advanced Micro Devices (AMD 11.01%), which is interesting because AMD is both a customer and, in some ways, a competitor.

Today’s Change

(-15.74%) $-49.80

Current Price

$266.63

Key Data Points

Market Cap

$230B

Day’s Range

$266.35 – $300.60

52wk Range

$61.44 – $324.20

Volume

4.1M

Avg Vol

32.4M

Gross Margin

50.64%

Dividend Yield

0.09%

Marvell’s earnings cap a strong month for AI stocks

Marvell reports somewhat later in the quarter than other major semiconductor stocks and cloud computing giants, so it had already been riding some sectorwide strength. The recent earnings season showed continued booming demand for AI infrastructure. Connectivity, where Marvell’s product portfolio shines, is front and center, as the move from training to inference to agentic AI places greater emphasis on how GPUs, CPUs, ASICs, and memory fit together in an optimized package.

In the middle of the month, AMD filed its 13-F document, which discloses its investments, disclosing that it had taken a small $6.5 million position in Marvell. While $6.5 million is really pennies compared to the size of these chip giants, the fact that AMD is investing in Marvell at all is interesting and suggests a closer partnership between the two moving forward.

Marvell followed up this good news with strong earnings on May 27. In the first quarter, Marvell reported revenue growth of 28% to $2.4 billion, while adjusted (non-GAAP) earnings per share grew 29% to $0.80. Both figures beat analyst expectations. Management also guided to strong sequential growth, forecasting $2.7 billion in revenue and $0.93 in adjusted EPS in the current quarter, and also gave longer-term guidance for the rest of the year and into next year. Fiscal year 2027 revenue guidance was raised to…

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