Citi has reaffirmed its Buy rating and $91.00 price target for Marvell (NASDAQ:MRVL), a leading semiconductor company. The endorsement comes after observing significant revenue growth and user engagement in various sectors associated with the company's operations.
The analyst noted a 36% year-over-year increase in revenues for the online game Free Fire, alongside a 6% rise in monthly active users (MAUs). NFS Mobile, another game, saw 400,000 downloads in November following its launch on October 31.
The forthcoming release of Delta Force is anticipated this week, adding to the company's portfolio of digital entertainment offerings. In the e-commerce domain, Shopee, a prominent online shopping platform, reported a consistent rise in MAUs by 6% year-over-year in the ASEAN region and a notable 20% in Brazil. Despite a 25% year-over-year decrease in downloads, Shopee achieved a 4% month-over-month improvement.
However, not all metrics signaled expansion. Temu, another e-commerce platform, experienced a stagnation in MAU growth in Malaysia and the Philippines, with slight monthly declines of 2-4% in November. Thailand also saw a 7% month-over-month dip in Temu's MAUs. In response to market dynamics, TikTok adjusted its marketplace commission rates in Thailand, effective January 2025, increasing them by 110 basis points for fashion and electronics categories. Shopee also made adjustments to its Mall rates in the Philippines and Indonesia for the upcoming year.
The analyst underscored the company's position as the preferred e-commerce play in Asia, citing its positive growth momentum and an improving execution track record. These factors are expected to continue propelling Marvell's stock price performance. InvestingPro analysis indicates the stock is trading above its Fair Value, with a market capitalization of $83.9 billion. Investors seeking deeper insights can access comprehensive financial health metrics and 12 additional ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks.
In other recent news, Marvell Technology has been the recipient of numerous positive analyst ratings, with Stifel maintaining a Buy rating and raising its 12-month price target to $114. Stifel's optimism is based on a solid revenue outlook, particularly from Marvell's Data Center business. The firm anticipates Marvell's October quarter results to meet or slightly exceed the revenue estimate of $1.45 billion. Furthermore, the firm predicts the guidance for the January quarter will surpass their estimate of $1.65 billion, driven by ongoing momentum in the Data Center sector.
Marvell has also deepened its relationship with Amazon (NASDAQ:AMZN) Web Services (AWS), with a five-year agreement to supply AWS with a range of data center semiconductors, including custom AI products. This partnership is set to enhance AWS's data center offerings and expedite Marvell's silicon design process through AWS's advanced compute capabilities.
Several other firms have issued positive ratings for Marvell. Evercore ISI upheld an Outperform rating and raised its price target to $122.00, while Rosenblatt maintained a Buy rating and a price target of $120. These upgrades are based on anticipated growth, a forecasted return to profitability this year, and robust growth in artificial intelligence (AI).
Marvell's recent Q2 revenues exceeded expectations at $1.27 billion. The company is scheduled to release its F3Q25 earnings soon, with analysts forecasting revenues and earnings per share that could outperform both firm and consensus estimates.
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