Marvell Technology's shares surged 23% after reporting strong Q3 earnings driven by a significant increase in data-center sales, largely due to AI demand. The company's AI revenue is projected to exceed $1.5 billion this fiscal year and $2.5 billion by 2025. Marvell's data-center segment now accounts for 73% of its total revenue, up from 39% a year ago. The company has also partnered with Amazon Web Services to enhance its AI chip offerings, challenging Nvidia's market dominance.
Marvell Technology's stock surged over 13% in premarket trading following strong quarterly earnings and a positive outlook driven by high demand for its AI chips. The stock broke out from an ascending triangle pattern, suggesting a continued uptrend, with a predicted price target of $120. Key support levels to watch are $95, $84, and $76. The company expects fourth-quarter revenue to exceed forecasts, and anticipates AI chip sales to reach $2.5 billion by fiscal 2026.
Nvidia is projected to have a 42% stock price upside in 2024, driven by its success in the AI chip market and an ambitious target of $100 billion in free cash flow over the next two years. Bank of America notes that Nvidia's growth will be supported by its strong competitive position, a pipeline of new AI chips, and the potential for new growth initiatives funded by its cash generation. Nvidia's ability to transition to a recurring revenue model is seen as crucial for sustaining growth and achieving a higher valuation multiple. The company is also expected to pursue partnerships and M&A to bolster its software and intellectual property assets. Bank of America maintains a "Buy" rating with a $700 price target on Nvidia's stock.
Nvidia and AMD are poised for growth in 2024 due to a projected rebound in the PC market and increasing demand for AI chips. Nvidia's gaming revenue and AI-focused developments, alongside AMD's success with Ryzen AI PC processors and collaboration with Microsoft on Windows advancements, are key factors driving their positive outlook. Analysts predict significant revenue increases for both companies, suggesting a strong investment opportunity in these semiconductor stocks.
Nvidia, AMD, and Intel are poised to be hot stock stories in 2024 due to their advancements and competition in the AI chip market. Nvidia has seen significant growth, with its market cap surpassing $1 trillion, but faces increasing competition from AMD's new MI300x chip, which is designed for generative AI and large language models, and Intel's resurgence with its Gaudi3 AI chip. As these tech giants ramp up production and innovation, their rivalry is expected to have major implications for their stock performance and the broader AI sector.
