Expert Insights

Marvell Technology (MRVL) will report earnings after today’s close in the thick of a particularly difficult earnings season for the tech bulls, as nagging questions about the sustainability of the artificial intelligence boom continue to plague the software and semiconductor sectors. Analysts are looking for the semiconductor company to deliver EPS of $0.79 against last year’s figure of $0.60 (+31.6%) and revenue of $2.20B vs $1.82B last year (+21.0%), while the options market shows a potential expected move of about +/-$7.30 (9.3%).

Marvell is a leading fabless semiconductor company, which means they design and develop various types of high-end computer chips and then outsource manufacturing to companies like Taiwan Semiconductor (TSM). Their products relating to A.I. data center infrastructure and storage chips should be of particular interest to investors during this earnings event, as these have been areas that continue to show unprecedented demand across the sector. 

Despite this, analysts seem to have moderated their view on MRVL in recent weeks. Evercore ISI yesterday lowered their price target to $133 from $156 while keeping their outperform rating, while Morgan Stanley on Mar. 2 cut their target to $95 from $112 and maintained their hold rating. The Morgan Stanley note said that strong demand should counteract pressure on shares.

Marvell shares have sunk about -24% from their yearly highs of $102.77 shortly after last earnings in December as of yesterday’s close but seem to have held support from a notable prior low from November 21 around 74. Recent trading has been more rangebound since early February with much of the price action taking place between about 76 to 83. Major moving averages reflect this sideways churn, with commonly followed exponential moving averages such as the 5-, 21-, 63-, and 251-day averages all clustering together near about 79 to 82 which gives traders a short-term confluence to consider. 

The yearly volume profile study shows price in the thick of most of the trading activity, with nodes standing out from 72 to 79 (including the Point of Control just below 75) to the downside and 82 to 85 to the upside. These stand out as potential congestion areas that also encompass the previously mentioned supportive areas near 74 and 76. Meanwhile, a breakout above relative highs near 85-86 would look positive for a potential trend shift to the upside.

U.S. stock futures are slightly lower in premarket trading after major averages posted gains in the previous session, as investor jitters around the U.S.-Iran war eased. Stocks rebounded in Wednesday’s regular session, buoyed by gains in technology and semiconductor giants.

Oil prices are spiking over 3% near $77 a barrel this morning after stabilizing yesterday with crude now up 14% this week. Fears of disruption to regional oil and gas supplies subsided after President Donald Trump said on Tuesday that the U.S. is preparing to provide risk insurance and escorts to ships in the Persian Gulf in an effort to ensure traffic can move through the Strait of Hormuz.

Investor focus remains on Middle East headlines along with earnings and data. Broadcom (AVGO) shares are up 6% ahead of the open after beating earnings expectations and raising guidance.