The chip name acquired AI startup Celestial AI in a deal worth roughly $3.25 billion
Shares of Marvell Technology Inc (NASDAQ:MRVL) are up 7.1% to trade at $99.51 at last check, following a third-quarter earnings and revenue beat. The semiconductor staple also issued a strong growth outlook for its data centers and announced the acquisition of AI startup Celestial AI in a deal worth roughly $3.25 billion.
The security has attracted no fewer than 17 price-target hikes in response, including from Oppenheimer $150 from $115. Analysts were already bullish coming into today, with 25 of the 35 in coverage sporting a "buy" or better rating, while the 12-month consensus target price of $112.55 is a 21.2% premium to current levels.
MRVL is now pacing for a fifth-straight daily gain, as well as its best single-day percentage pop since Nov. 24. The stock surged to its highest level since February right out of the gate, and earlier broke above a ceiling at the $100 region. In the last six months, the security has added 52.3%.
Options traders are chiming in this morning, with 112,000 calls and 67,000 puts traded in just the first hour of trading, which is six times the volume typically seen at this point. Most active is the weekly 12/5 105-strike call, followed by the 95-strike call in the same series.