Marvell's shares experienced a significant surge of 83% in 2024.
Marvell Technology's shares, represented by MRVL, sailed an impressive 83.1% upward journey in 2024, as per data sourced from S&P Global Market Intelligence. This performance outshone the S&P 500's 25% climb and the Nasdaq Composite's 29.6% rise, showcasing Marvell's stellar year. However, in 2025, the stock dipped 3.5% through January 10th.
The primary force behind Marvell's 2024 success was the robust demand for AI capabilities. The company gained traction from selling custom AI chips, known as application-specific integrated circuits (ASICs), and interconnect products designed for AI-driven data centers.
The early part of 2024 saw moderate growth for Marvell, with the stock rising 15.9%, which was in line with the S&P 500's first-half return. Yet, the stock's performance paled in comparison to AI chip king, Nvidia, and leading CPU chip designer, Arm Holdings.
However, Marvell's fortunes took a turn for the better in the latter half of 2024, as the company enjoyed a remarkable 52% surge in the fourth quarter. The main catalyst was Marvell's third-quarter fiscal year 2025 earnings report, which displayed an impressive 7% revenue increase to $1.52 billion. The AI segment contributed substantially to this growth, and highlighted Marvell's potential.
The earnings report revealed an astounding 98% year-over-year revenue increase in the AI-driven data center market, accounting for 72% of the quarter's total revenue. Fiscal Q4 guidance for revenue and earnings per share (EPS) also surpassed analyst expectations.
CEO Matt Murphy expressed his confidence in Marvell's continued growth, boding well for the future. Yet, there are challenges to consider, including declining revenue per share and gross profit margins, as well as Marvell's high valuation relative to its earnings.
While the enrichment data suggests that Marvell's growth can be attributed to AI capabilities, strong earnings, and positive analyst reactions, it's essential to remain aware of potential headwinds. A well-informed approach will help investors weigh the potential risks and rewards associated with Marvell Technology's stock.
In light of Marvell's impressive 2024 performance, investors may consider increasing their finance allocation towards Marvell Technology, given the potential returns from investing in a company with a strong focus on AI capabilities. This upward trend could continue if Marvell manages to navigate the challenges mentioned by CEO Matt Murphy and maintain its strong earnings momentum.
