Marvell stock has gained 34.5% so far this year.
Outlook
For the second quarter, the company projects revenue to be about $650 million, while adjusted earnings are expected to come in the range of $0.13 to $0.17 per share.
Marvell CEO Matt Murphy said, “With the production ramp of our first 5G products later this year, and a growing pipeline of new wireless infrastructure design wins, Marvell is well positioned to becoming a leading silicon supplier to this market.”
READ: THIS TIME ELON MUSK GETS AN AWARD FOR HIS TWEETS
Earlier this week, rival NXP Semiconductors (NASDAQ: NXPI) had announced its plan to acquire Marvell’s Wi-Fi Connectivity business, in a deal that is expected to enhance Marvell’s margins. The transaction is expected to close by March 2020.
Marvell and its peers have been facing the brunt of weak macros,
reduction in spending from their clients and a shortage of CPUs, which has been
reflected in their earnings. However, the company is seeing strong demand for
its networking products from 4G and 5G deployments.