shares of marvel technology The stock continued its strong overnight rally on Friday morning, jumping about 25% after quarterly earnings beat sales and bottom line earnings.
On Thursday, the company posted adjusted first-quarter earnings of 31 cents per share, beating Refinitiv’s consensus forecast of 29 cents per share. Revenue for the same period totaled $1.32 billion, beating analyst consensus of $1.3 billion.
Marvel stock is currently trading at levels not seen since April 2022.
Marvel CEO Matthew Murphy said on an analyst conference call that the company has begun to reassess how it sees AI’s “tremendous” business potential.
“Traditionally, AI was thought of as one of many applications in the cloud, but its importance and opportunities have increased dramatically,” Murphy said.
In an investor memo, Citi analysts said the company has a huge opportunity to grow its AI-driven earnings. Citi raised its price target to $61 from $58, maintaining a buy rating.
In a memo, Citi’s Atif Malik said, “MRVL estimates AI revenue to be around $200 million in fiscal year 2023, marking a significant increase from fiscal year 22.” will reach approximately $400 million or more in fiscal 2024, and then double in fiscal 2025.”
Many semiconductor companies experienced a boost after Nvidia’s big earnings report on Wednesday. Nvidia’s market capitalization now stands at nearly $1 trillion.
CNBC’s Michael Bloom and Chris Hayes contributed to this report.
