The chipmaker's first-quarter earnings and revenue topped expectations
Marvell Technology Inc (NASDAQ:MRVL) is up 5.7% at $51.02 this morning, rising on the back of a first-quarter earnings and revenue beat. The semiconductor name's second-quarter forecast also topped expectations, with the company citing its Inphi acquisition as accelerating and increasing its growth opportunity. Also giving the equity a boost is news that the White House supply chain review recommended that Congress provide at least $50 billion to boost semiconductor manufacturing.
No less than nine analysts raised their price targets in response, the highest coming from Stifel to $65. Meanwhile CRFA said it liked Marvell's long-term dynamics and lifted its price target to $60 from $52.
The brokerage bunch was already bullish coming into today, with 15 in coverage calling MRVL a "strong buy," compared to just four "hold" ratings. Meanwhile, the 12-month consensus price target of $58.84 is a 14.4% premium to current levels.
The security charged into today's trading by toppling recent pressure at the $49 level, and hit a three-month high right out of the gate. It's been a choppy year for MRVL, though the equity looks to be enjoying a leg higher, finding support at the 50-day moving average -- a level of rejection in late April and early May.
An influx of options activity has already crossed the tape within the first hour of trading. So far 23,000 calls and 12,000 puts have exchanged hands -- eight times the intraday average. The most active contract so far is the weekly 6/11 52-strike call, followed by the 50-strike call in the same series.