Marvell Technology, Inc. (NASDAQ:MRVL) shares are trading higher on Wednesday after the company reported better-than-expected 2025 fiscal-year third-quarter earnings and issued fourth-quarter guidance above estimates on Tuesday after the bell.

The Details: Marvell shares traded about 9% higher on late Tuesday following the release of the earnings report. In the earnings report, the company reported adjusted earnings per share of 43 cents, beating analyst estimates of 41 cents.

In addition, the company reported sales of $1.52 billion, representing a 7% year-over-year growth, and beating analyst estimates of $1.46 billion. Furthermore, the company reported a gross margin of 23% and cash flow from operations of $536.3 million.

Marvell also issued guidance for the 2025 fourth quarter. The company sees revenue of $1.80 billion, plus or minus 5%, versus analyst estimates of $1.65 billion. Additionally, Marvell sees earnings per share between 54 cents and 64 cents versus analyst estimates of 52 cents.

"Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI. For the fourth quarter, we are forecasting another 19% sequential revenue growth at the midpoint of guidance, while year-over-year, we expect revenue growth to accelerate significantly to 26%, marking the beginning of a new era of growth for Marvell," said Matt Murphy, Marvell's Chairman and CEO.

"The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products. We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026."

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Barclays analyst Blayne Curtis maintained an Overweight rating on Marvell and raised the price target from $85 to $115.
• Needham analyst Quinn Bolton maintained a Buy rating on Marvell and raised the price target from $95 to $120.
• Benchmark analyst Cody Acree reiterated a Buy rating on Marvell Tech and raised the price target from $115 to $135.
• Rosenblatt analyst Hans Mosesmann maintained a Buy rating on Marvell and raised the price target from $120 to $140.
• B of A Securities analyst Vivek Arya maintained a Buy rating on Marvell and raised the price target from $108 to $125.

MRVL Price Action: At the time of publication, Marvell stock is trading 22.6% higher at $117.73, according to data from Benzinga Pro.

Image: Shutterstock