149 stories mentioning Marvell TechnologyUpdated 1d ago
Named among Wallstreetbets-favorite stocks set to decline premarket Wednesday, alongside Micron Technology, as most of those names traded lower.
Recent broker actions mentioned in FINWIRES coverage. Compiled from wire headlines; not investment advice.
Marvell Technology (MRVL) has an average rating of buy and mean price target of $292.92, according to analysts polled by FactSet.Price: $236.86, Change: $+9.90, Percent Change: +4.36%
Qualcomm (QCOM) will provide custom-built chips and high-speed optical connectivity for the artificial intelligence data centers of Amazon's (AMZN) cloud computing division as part of a collaboration, the companies said Tuesday.In connection with the partnership, the semiconductor giant issued a warrant to Amazon to acquire up to 25 million Qualcomm common shares at an exercise price of $161.26 per share, according to a regulatory filing.Qualcomm shares were up 3.7% in Tuesday afternoon trade, while Amazon edged down 0.4%."As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency," Qualcomm Chief Executive Cristiano Amon said in a statement. "Qualcomm is pleased to work with (Amazon Web Services) on customized silicon and connectivity solutions."The warrant allows for cashless exercise and is scheduled to expire Sept. 3, 2036, Qualcomm said in the filing. The warrant shares vest in tranches related to the execution of certain commercial arrangements and purchases of QTI's server chip products, technology, systems and manufacturing services by Amazon, up to a maximum amount of $60 billion in payments, according to the filing.In June, Qualcomm -- which has historically been known for designing and producing mobile phone chips -- said that it was accelerating its diversification roadmap to include AI data centers. The company said at the time it was aiming for more than $15 billion in data center revenue by fiscal 2029."By working together on customized silicon and advanced connectivity, we're delivering more performant, efficient, and cost-effective infrastructure for our customers," Prasad Kalyanaraman, vice president AWS, said Tuesday.Amazon and other hyperscalers are spending huge sums to expand their AI infrastructure footprints globally amid growing demand for AI and cloud services. In July, Amazon raised its full-year capital expenditures outlook to roughly $220 billion from $200 billion, driven by higher memory costs.Last month, chip designer Marvell Technology (MRVL) entered into a deal that would allow Alphabet's (GOOG, GOOGL) Google to purchase up to $12.18 billion of Marvell shares as part of a collaboration. That deal also involved the issuance of a warrant.As part of what it described as a "multi-generational product collaboration" with the e-commerce giant, Qualcomm said Tuesday intends to "deepen" its use of AWS AI infrastructure in designing chips.In June, Qualcomm agreed to acquire software infrastructure firm Modular in a roughly $3.92 billion deal in a bid to bolster its ability to deliver a more optimized AI compute layer.Price: $175.23, Change: $+6.49, Percent Change: +3.85%
(Updates with market moves at the end of the day, and other changes, if any.)US stocks fell Friday to cap a mixed week on Wall Street as strong jobs data raised the odds of an interest rate hike later this month.The Dow Jones Industrial Average declined 0.5% to close at 53,414.25, while the S&P 500 dipped 0.4% to 7,718.60. The Nasdaq Composite dropped 0.3% to 26,506.99. Most sectors ended in the red, led by consumer discretionary, while industrials paced the gainers.US markets will be closed on Monday for the Labor Day holiday.This week, the Dow lost 0.3%, while the Nasdaq and the S&P 500 gained 0.4% and 0.1%, respectively.Total nonfarm payrolls rose by 162,000 last month, the Bureau of Labor Statistics said Friday, nearly triple the 55,000 increase projected in a Bloomberg-compiled survey. July's tally was revised to show a gain of 21,000 from a 23,000 fall.The jobs report comes as the Federal Reserve weighs labor market conditions and inflation expectations ahead of its policy meeting later this month. Fed Chair Kevin Warsh said late last month that the US economy was "doing well" on employment, describing inflation numbers as more concerning.Markets are pricing in a 58% probability that the Federal Open Market Committee will raise its benchmark lending rate on Sept. 16, up from 49% on Thursday, according to the CME FedWatch tool."The labor market strength and resilience evident in the August employment report with upward job revisions over the past two months nearly wipe away the narrative of labor market deterioration over the summer," BMO Chief US Economist Scott Anderson said in a note."The report adds important weight to the hawks' argument that inflation may not moderate back toward the Fed's 2% target in a timely manner without at least a nudge up in interest rates to help cool aggregate demand."Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.Diesel prices in the US reached an all-time high on Friday amid crude supply disruptions, likely adding to concerns around sticky inflation.Treasury yields were higher, with the two-year rate rising 4.3 basis points to 4.38% and the 10-year rate up 2.2 basis points at 4.78%.West Texas Intermediate crude oil was up 0.1% at $91.37 a barrel in Friday late-afternoon trade, while Brent rose 0.5% to $96. The benchmarks were on track for weekly gains of 9.3% and 8.8%, respectively.In company news, Lululemon (LULU) shares tanked 17%, the worst performer on the S&P 500, as the athletic apparel retailer lowered its full-year outlook amid challenging market dynamics and continued pressure on the brand.UiPath (PATH) slid nearly 17% after the software company released its latest quarterly results late Thursday.Zscaler (ZS) fell 4.5% even as the cloud security company reported fiscal fourth-quarter results above Wall Street's consensus and outlined a strong full-year outlook. The company's guidance is conservative and reflects factors including an expected loss of Red Canary's customers and the competitive artificial intelligence security environment, Oppenheimer said in a note.Adobe (ADBE) slumped 6.7%, among the steepest declines on the S&P 500, after the company named insider Anil Chakravarthy as its next chief executive, succeeding Shantanu Narayen, who will become executive chair. Chakravarthy's appointment could lead to strategic messaging around the company's experience cloud business, RBC Capital Markets said in a note.Bucking the market's downward trend, tech-related stocks rose, with SanDisk (SNDK) up nearly 12%, the biggest gain on the S&P 500. Marvell Technology (MRVL), Micron Technology (MU) and Western Digital (WDC) also advanced.Spot gold was 0.9% lower at $4,431.29 per troy ounce, while silver lost 1.3% to $66.82 per ounce.
(Updates with latest market prices and developments.)US benchmark equity indexes fell intraday as a stronger-than-expected August jobs report boosted the odds of the Federal Reserve raising interest rates as early as this month.The Dow Jones Industrial Average was down 0.5% at 53,412.4 after midday Friday. The S&P 500 and the Nasdaq Composite lost 0.3% each to 7,721.2 and 26,506.9, respectively.Most sectors were in the red intraday Friday, led by consumer discretionary, while industrials paced the gainers.Total nonfarm payrolls rose by 162,000 last month, the Bureau of Labor Statistics said Friday, nearly triple the 55,000 increase projected in a Bloomberg-compiled survey. July's tally was revised to show a gain of 21,000 from a 23,000 fall.The jobs report comes as the Federal Reserve weighs labor-market conditions and inflation expectations ahead of its policy meeting later this month. Fed Chair Kevin Warsh said late last month that the US economy was "doing well" on employment, describing inflation numbers as more concerning.Markets are pricing in a 58% probability that the Federal Open Market Committee will raise its benchmark lending rate on Sept. 16, up from 49% on Thursday, according to the CME FedWatch tool."The labor market strength and resilience evident in the August employment report with upward job revisions over the past two months nearly wipe away the narrative of labor market deterioration over the summer," BMO Chief US Economist Scott Anderson said in a note."The report adds important weight to the hawks' argument that inflation may not moderate back toward the Fed's 2.0% target in a timely manner without at least a nudge up in interest rates to help cool aggregate demand."Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.Treasury yields were higher intraday, with the two-year rate rising 3.6 basis points to 4.37% and the 10-year rate up 0.6 basis point at 4.77%.West Texas Intermediate crude oil was little changed at $91.29 a barrel, while Brent rose 0.6% to $96.06. The benchmarks were on track for weekly gains.In company news, Lululemon (LULU) shares tanked 17% intraday, the worst performer on the S&P 500, as the athletic apparel retailer lowered its full-year outlook amid challenging market dynamics and continued pressure on the brand.UiPath (PATH) slid 17% after the software company released its latest quarterly results late Thursday.Zscaler (ZS) fell 4.9% even as the cloud security company reported fiscal fourth-quarter results above Wall Street's consensus and outlined a strong full-year outlook. The company's guidance is conservative and reflects factors including an expected loss of Red Canary's customers and the competitive artificial intelligence security environment, Oppenheimer said in a note.Bucking the market's downward trend, tech-related stocks were higher intraday, with SanDisk (SNDK) up 11%, the biggest gain on the S&P 500. Super Micro Computer (SMCI), Marvell Technology (MRVL) and Western Digital (WDC) also advanced.Spot gold was 0.8% lower at $4,435.64 per troy ounce, while silver lost 1.3% to $66.81 per ounce.
Broadcom's (AVGO) guidance that its artificial intelligence revenue will double in fiscal 2027 was slightly below Wall Street's consensus but the company is likely to "handily" top the projection, Truist Securities said in a note emailed Thursday.Late Wednesday, the chipmaker reported a fiscal third-quarter beat amid a surge in AI semiconductor sales and projected that revenue in the ongoing quarter will top Street's views."In 2027, we have secured the supply to again double AI revenue to approximately $115 billion. Our demand actually exceeds this outlook and we will work to improve supply," Chief Executive Hock Tan said on an earnings conference call, according to a FactSet transcript. "We have line of sight for fiscal 2028 AI semiconductor revenue growth to again double to $230 billion.""We believe demand far exceeds this outlook but is constrained by land/power/shell, and memory," William Stein a Truist managing director said in a note to clients.Analysts expect fiscal 2027 and 2028 AI revenue of $123 billion and $177 billion, according to the note.Truist expects Broadcom to beat the guidance while citing pre-payments for materials and take-or-pay agreements as key factors supporting the reliability of the outlook.Broadcom's model points to a stronger growth trajectory over the next two years, while the scale of gigawatt data center deployments makes the guidance easily achievable, Stein said.The brokerage reduced its price target on Broadcom's stock to $520 from $550 and reiterated buy rating. Truist also lowered calendar year 2027 earnings per share estimate to $21.12 from $22.35.Every gigawatt of compute deployed by Anthropic and OpenAI can generate $30 billion in annual recurring revenue, making it a "great" investment, Tan said."Considering build costs of ($40 billion to $50 billion per gigawatt), the implication is that inference is hugely profitable for frontier labs, which leads them to continue to invest aggressively in training infrastructure," Stein wrote. "We view this as very constructive for the whole AI complex."Broadcom stock was down 5.4% Thursday morning and is 0.4% higher year-to-date.Rising data center demand is driving strong results, with Nvidia (NVDA) and chip designer Marvell Technology (MRVL) reporting quarterly revenue beats last month. Previously, chipmaker Advanced Micro Devices (AMD) posted fiscal second-quarter results above estimates and issued a strong third-quarter revenue outlook.Price: $346.66, Change: $-20.58, Percent Change: -5.60%
Broadcom's (AVGO) fiscal third-quarter results topped Wall Street estimates, driven by a surge in artificial intelligence semiconductor revenue, while the chipmaker guided current-quarter sales ahead of market expectations.Adjusted earnings rose to $3.32 a share during the quarter through Aug. 2 from $1.69 a year earlier, coming in ahead of the FactSet-polled consensus indicating $3.22. Revenue advanced 86% to $29.59 billion, above the Street's $29.24 billion view.AI semiconductor revenue soared 221% year-on-year to $16.7 billion, driven by strong demand for custom AI accelerators and networking, Broadcom Chief Executive Hock Tan said in a statement.The semiconductor solutions division's sales climbed 127% to $20.84 billion, while the infrastructure software segment increased 29% to $8.75 billion.For the fourth quarter, Broadcom anticipates total revenue growth of 93%, to about $34.8 billion, compared with the consensus estimate of $34.68 billion.AI semiconductor revenue is seen climbing 236% year-over-year to $21.7 billion in the fourth quarter, Tan said.Broadcom's stock fell 3.4% in after-hours trading, and had gained 6.1% this year through Wednesday's close.RBC Capital Markets expected the company to report solid quarterly results and raise its fiscal 2027 AI revenue guidance toward the $120 billion consensus view from its most recent guidance of more than $100 billion."Overall, we won't be surprised if the stock reacts slightly positively given the recent underperformance but are unsure if (fiscal 2027) estimates will move materially above consensus," the brokerage said in a note to clients last week.Nvidia (NVDA) said late last month that record data center sales drove a fiscal second-quarter beat. Chip designer Marvell Technology's (MRVL) latest quarterly results also beat market estimates amid a surge in data center revenue.Previously, chipmaker Advanced Micro Devices (AMD) posted fiscal second-quarter results above estimates and issued a strong third-quarter revenue outlook.
Adobe (ADBE) is expected to report solid fiscal third-quarter results, with its annual recurring revenue likely to exceed Wall Street's estimates, RBC Capital Markets said Wednesday in a client note.The Photoshop maker is scheduled to release its quarterly financials on Sept. 10, with analysts in a FactSet poll looking for ARR of $27.47 billion.RBC expects Adobe to deliver upside to third-quarter ARR consensus estimates.The brokerage is projecting earnings per share of $6.08 on sales of $6.7 billion. The consensus on FactSet is for EPS of $6.07 on an adjusted basis and revenue of $6.69 billion.Amid near-term ARR headwinds, an update on the company's pricing and go-to-market strategy will be in focus when Adobe releases its results, according to RBC analysts, including Matthew Swanson."Recent stock performance has been driven in large part by improving (software-as-a-service) sentiment, as we continue to feel a path to ARR re-acceleration remains the key to company-specific multiple expansion," Swanson wrote.Adobe's share price closed 2.2% lower on Wednesday, and are down 20% this year.While year-to-date stock values of SaaS companies are still down, they have stabilized since the start of July, with Adobe up 36%, according to RBC."We continue to feel that Adobe needs to lean into platform breadth and the differentiation that comes from scale, compliance, governance and interconnectivity to deepen enterprise moats while the (return on investment) proposition of experience cloud is in our view the best path to ARR re-acceleration," Swanson said.The market is also awaiting announcements on new chief executive and chief financial officer, the brokerage said.In March, Adobe announced that Shantanu Narayen would step down as CEO after a successor has been named.CFO Dan Durn resigned in June to take the same role at Marvell Technology (MRVL), with Steve Day, CFO of Adobe's customer experience orchestration unit, stepping in as interim finance chief.RBC reiterated its outperform rating on Adobe's shares and raised the price target to $315 from $285.Some of Adobe's competitors in the broader enterprise software space have announced their quarterly financials, with Microsoft's (MSFT) fiscal fourth-quarter results topping the Street's expectations late in July. Salesforce (CRM) increased its full-year revenue guidance toward the end of August after the customer relationship management platform delivered a fiscal second-quarter beat.Price: $280.69, Change: $-5.39, Percent Change: -1.88%
Nvidia (NVDA) expanded its partnership with chip designer MediaTek, including a $3.5 billion investment, to support adoption of the company's proprietary interconnect technology for custom rack-scale artificial intelligence chips.Under the deal, Nvidia bought $3.5 billion convertible bonds issued by MediaTek, and the Taiwan-based fabless chipmaker will adopt the NVLink Fusion platform, which provides chipmakers with prevalidated connectors and specialized memory to integrate custom AI accelerators directly into Nvidia's rack-scale data center systems."MediaTek is one of the world's great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency," Nvidia Chief Executive Jensen Huang said. "Together, we're building platforms that bring Nvidia accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale.""Nvidia's investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI," MediaTek CEO Rick Tsai said.Last week, Nvidia reported fiscal second-quarter results that more than doubled from a year ago and topped Wall Street expectations, driven by record data center sales. Morgan Stanley said the chipmaking giant offered a surprisingly strong fiscal 2028 revenue outlook, while its gross margin guidance provided clarity amid rising memory costs.Separately, Nvidia announced an expanded partnership with Amazon.com's (AMZN) Amazon Web Services to supply 2 million additional GPUs across AWS infrastructure in 2027 and 2028, and build dedicated 100,000-GPU AI factories for federal security workloads.Earlier in August, Nvidia said it was collaborating with six major financial institutions to launch compute financing platforms aimed at raising over $500 billion in third-party capital to support its AI infrastructure. Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BAM), Goldman Sachs (GS) and KKR (KKR) were part of the partnership.Previously, Nvidia agreed to expand its partnership with South Korean conglomerate SK Group with a more than $500 billion AI infrastructure initiative.Nvidia's shares were up 1.1% Monday and have gained 18% this year.Chip designer Marvell Technology (MRVL) reported late last week second-quarter results above Wall Street's estimates amid a surge in data center revenue. B. Riley Securities said the company's fiscal third-quarter gross margin outlook came in a bit soft amid a higher custom product mix.Semiconductor manufacturer Broadcom (AVGO) is scheduled to report its fiscal third-quarter results Wednesday.Price: $220.40, Change: $+2.85, Percent Change: +1.31%
(Updates with market moves at the end of the day, and other changes, if any.)US stocks fell Friday, though they still locked in weekly gains, as bets for a September interest rate hike increased after Federal Reserve Chair Kevin Warsh expressed worries about inflation.The Nasdaq Composite declined 0.5% to close at 26,402.42, while the S&P 500 dipped 0.3% to 7,711.76. The Dow Jones Industrial Average ended just below the flatline at 53,559.99. Among sectors, technology led the laggards, while consumer discretionary saw the biggest gain.Despite Friday's declines, all three indexes logged weekly gains, with the Nasdaq up 0.9%. The Dow and the S&P 500 advanced 0.5% each.In his debut Jackson Hole speech as Fed chief, Warsh said Friday that inflation numbers were concerning, citing the Fed's preferred metric -- the personal consumption expenditure price index -- which was unchanged at 3.7% year over year in July."The comparable measures from the consumer price index are also elevated, as are the core measures of both PCE and CPI inflation," Warsh said. "None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2% target. So the Fed's predominant focus right now should be on prices."The odds of a quarter-point rate hike next month rose to about 58% on Friday from 35% the day before, according to the CME FedWatch tool. The probability that the Federal Open Market Committee will keep the benchmark rate steady fell to about 43% from 65%.US Treasury yields jumped, with the two-year yield up 12.6 basis points at 4.36% and the 10-year yield rising 5.6 basis points to 4.73%."Warsh came out blazing with a mostly hawkish message and interpretation of the recent data. In essence, he said that the 2% target on PCE prices was firm and there was work to be done to get there, since policy is not restrictive," BMO Chief Economist Douglas Porter said in a report. "The net result of Warsh's stern remarks was that the market is now back to pricing in roughly 50-50 odds of a hike at the mid-September FOMC meeting."US consumer sentiment dropped in August amid concerns that inflation will continue to be high for the "foreseeable future," final results of a University of Michigan survey showed Friday.In company news, Paypal (PYPL) shares slumped nearly 13%, the worst performer on the S&P 500, after Bloomberg News reported that buyout firm Advent and payment-processor Stripe have ditched their bid to buy the company.Marvell Technology (MRVL) followed Paypal on the index, down 10%, despite reporting stronger-than-expected second-quarter results late Thursday.Marvell's (MRVL) fiscal third-quarter gross margin outlook came in a bit soft amid a higher custom product mix, B. Riley Securities said in a note e-mailed Friday.Workday (WDAY) was the top gainer on the S&P 500, up 5.8%. The finance and human resources solutions provider raised the low end of its full-year subscription revenue outlook after it recorded fiscal second-quarter results above Wall Street's estimates.West Texas Intermediate crude oil edged down 0.1% to $83.41 a barrel in Friday late-afternoon trade, while Brent dipped 0.4% to $89.31.Spot gold fell 3% to $4,459.42 per troy ounce, while silver lost 4.5% to $67.08 per ounce.
Tech stocks were lower late Friday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 3.6%.The Philadelphia Semiconductor Index was down 3.4%.In sector news, the Department of Commerce's Bureau of Industry and Security is working on a slimmed-down replacement plan for the export controls on advanced AI chips that the Biden administration imposed to slow the technological progress of geopolitical rivals, The Information reported. The new rule is expected to close a loophole via which Chinese AI firms can access advanced chips through data centers in other countries, the report said.In corporate news, Marvell Technology (MRVL) shares fell past 9% after the company's stronger-than-expected fiscal Q2 results were overshadowed by investor concerns over the timing of revenue from its deal with Alphabet's (GOOGL, GOOG) Google.Workday (WDAY) raised the low end of its full-year subscription revenue outlook after the finance and human resources solutions provider recorded fiscal Q2 results above Wall Street's estimates. Its shares climbed past 6%.Amazon.com (AMZN) has signed a power purchase agreement in Germany and invested in four Swedish wind energy projects, the company said Friday. Amazon said it agreed to buy 600 megawatts of electricity from the planned Gennaker offshore wind farm in the Baltic Sea. Amazon shares rose 3.9%.Microsoft (MSFT) workers have raised concerns about the impact of its AI data centers on energy use, water consumption, emissions, and local communities, Bloomberg reported, citing Development Chief Noelle Walsh's memo to employees. Microsoft shares were up 1.7%.
Marvell Technology's (MRVL) fiscal third-quarter gross margin outlook came in a bit soft amid a higher custom product mix, following "solid" results for its just-concluded quarter, B. Riley Securities said in a note e-mailed Friday.Late Thursday, the chip designer's second-quarter results rose above Wall Street's estimates amid a surge in data center revenue. For the ongoing quarter, the company expects non-GAAP gross margin between 57.5% and 58.5% versus 58.9% reported for the prior quarter."Revenue levels and product mix remain key determinants of gross margin in any given quarter, with the forecasted acceleration of our custom business creating the sequential headwind in the fiscal third quarter," Marvell Technology Chief Financial Officer Dan Durn said on an earnings conference call, according to a FactSet transcript.The company expects to maintain fourth-quarter gross margin "in this range," Durn said.The third-quarter gross margin outlook was below B. Riley's estimates amid "greater custom mix," analyst Craig Ellis said in a note to clients. "Overall, a solid (second) quarter in our view, with the diversifying data center base led by interconnect strength."Gross margin for the second half of fiscal 2027 is likely "a little below" on mix, while operating expenditures are a little higher on growth investments for Amazon (AMZN) Web Services Trainium, Alphabet's (GOOG, GOOGL) Google XPU, and Nvidia (NVDA) NVLink Fusion deals, Ellis said."While (operating margins) should still strongly enter the 38%-to-40% range in (the fourth quarter), that's a little below our prior forecast given (gross margin) action," the analyst wrote.B. Riley lowered its price target on the Marvell Technology stock to $315 from $345, with a buy rating.The company's shares were down 9.9% in Friday late-afternoon trade. The stock has jumped about 156% so far this year."We believe investors will get much more of the long-term growth outlook they'd like in six weeks at analyst day, with the model now defensively set on (gross margin) and OpEx," Ellis said. "We thus see a buy-the-dip opportunity, though acknowledged shares could trade sideways or even a bit lower into early (fourth quarter)."Earlier in the week, Morgan Stanley said chipmaking giant Nvidia offered a surprisingly strong fiscal 2028 revenue outlook, while its gross margin guidance provided clarity amid rising memory costs.Semiconductor manufacturer Broadcom (AVGO) is scheduled to report its fiscal third-quarter results Wednesday."Overall, (Marvell Technology's) leverage is dented a bit near term as large customer programs get going, though longer-term growth and EPS seem strongly on track to what could be $10 to $11 in (2029 EPS), and much greater thereafter," Ellis said.Price: $217.54, Change: $-23.91, Percent Change: -9.90%
(Updates with latest market prices and developments.)US benchmark equity indexes were mostly lower intraday, while bond yields rose, as investors assessed Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole economic policy symposium.The Nasdaq Composite was down 0.4% at 26,438.2 after midday Friday, while the S&P 500 fell 0.2% to 7,716.9. The Dow Jones Industrial Average was little changed at 53,564.9. The indexes finished the previous trading session in the green, with the Nasdaq recording its biggest single-day percentage gain since Aug. 4.Among sectors, utilities led the laggards intraday Friday, while consumer discretionary and communication services saw the biggest gains.In his debut Jackson Hole speech as Fed chief, Warsh said Friday that inflation numbers were concerning, citing the Fed's preferred metric -- the personal consumption expenditure price index -- which was unchanged at 3.7% year over year in July."The comparable measures from the consumer price index are also elevated, as are the core measures of both PCE and CPI inflation," Warsh said. "None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2% target. So the Fed's predominant focus right now should be on prices."The odds of a quarter-point rate hike next month rose to about 58% on Friday from 35% the day before, according to the CME FedWatch tool. The probability that the Federal Open Market Committee will keep the benchmark rate steady fell to 43% from 65%.US Treasury yields jumped intraday Friday, with the two-year yield up 10.9 basis points at 4.34% and the 10-year yield rising 5.4 basis points to 4.73%."With core inflation above target for more than five years and, in our view likely to stay elevated, markets responded (to Warsh's remarks) accordingly," Stifel said in a note e-mailed to. "For equities, we would anticipate a hawkish message continuing to tighten financial conditions as investors once again embrace the 'Don't Fight the Fed' playbook."US consumer sentiment dropped in August amid concerns that inflation will continue to be high for the "foreseeable future," final results of a University of Michigan survey showed Friday.In company news, Paypal (PYPL) shares were down 12% intraday, the worst performer on the S&P 500, after Bloomberg News reported that buyout firm Advent and payment-processor Stripe have ditched their bid to buy the company.Marvell Technology (MRVL) followed Paypal on the index, down 10%, despite reporting stronger-than-expected second-quarter results late Thursday.Workday (WDAY) was the top gainer on the S&P 500, up 6.1%. The finance and human resources solutions provider raised the low end of its full-year subscription revenue outlook after it recorded fiscal second-quarter results above Wall Street's estimates.West Texas Intermediate crude oil edged down 0.1% to $83.47 a barrel intraday Friday, while Brent dipped 0.4% to $89.39.Spot gold fell 2.7% to $4,476.72 per troy ounce, while silver lost 4.2% to $67.32 per ounce.
Tech stocks were lower Friday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 3.9%.The Philadelphia Semiconductor index was down 3.6%.In sector news, the Department of Commerce's Bureau of Industry and Security is working on a slimmed-down replacement plan to the export controls on advanced AI chips that the Biden administration imposed to slow the technological progress of geopolitical rivals, The Information reported. The new rule is expected to try to close a loophole via which Chinese AI firms can access advanced chips through data centers in other countries, the report said.In corporate news, Marvell Technology (MRVL) shares fell past 10% after the company's stronger-than-expected fiscal Q2 results were overshadowed by investor concerns over the timing of revenue from its deal with Alphabet's (GOOGL, GOOG) Google.Workday (WDAY) raised the low end of its full-year subscription revenue outlook after the finance and human resources solutions provider recorded fiscal Q2 results above Wall Street's estimates. Its shares climbed 6.1%.Elastic (ESTC) shares surged 17% after it reported overnight higher fiscal Q1 non-GAAP earnings and revenue.
Tech stocks were lower Friday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 3.9%.The Philadelphia Semiconductor index was down 3.6%.In corporate news, Marvell Technology (MRVL) shares fell 10% after the company's stronger-than-expected fiscal Q2 results were overshadowed by investor concerns over the timing of revenue from its deal with Alphabet's (GOOGL, GOOG) Google.
Marvell Technology (MRVL) could see stronger growth as demand for custom AI chips, optical products and networking switches increases, while Alphabet's (GOOG, GOOGL) Google-related programs could provide more upside from fiscal 2029, UBS said in a note emailed Friday.Marvell now expects about $12 billion in fiscal 2027 revenue, up from its previous $11.5 billion outlook, while fiscal 2028 revenue could reach about $18 billion, above the previous $16.5 billion forecast, as data center revenue is expected to grow sharply and custom business anticipated to more than double, according to the note.The investment firm said it expects Marvell's custom chip business to speed up in H2 of fiscal 2027, helped by existing and new XPU programs, while Google-related projects could become a bigger source of growth from fiscal 2029.Strong demand for 800G and 1.6T optical products, along with growing AI networking needs, should support sales, while switching revenue could also exceed earlier expectations, the investment firm said.UBS raised its 2028 earnings estimate to $10.86 per share from $10.31, while keeping its buy rating and $310 price target for Marvell.Price: $216.87, Change: $-24.58, Percent Change: -10.18%
All three major US stock indexes were up in late-morning trading Friday, as market participants parsed Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium in Wyoming.In the speech, Warsh said inflation is the more concerning part of the Fed's dual mandate while recommitting to the central bank's 2% policy target. The new chair also restated his belief that forward guidance can handcuff the Fed, preventing it from making key decisions.In company news, Advent and Stripe have abandoned their $50 billion bid to buy PayPal (PYPL), Bloomberg reported Friday, citing people familiar with the matter. PayPal shares were down 11.5% around midday.Marvell Technology (MRVL) reported fiscal Q2 adjusted earnings late Thursday of $0.94 per diluted share, up from $0.67 a year earlier and above the FactSet consensus estimate of $0.93. Fiscal Q2 revenue was $2.74 billion, up from $2.01 billion a year ago and above the FactSet consensus of $2.72 billion. For fiscal Q3, the company said it expects adjusted EPS of $1.10, plus or minus $0.05, on revenue of $3.15 billion, plus or minus 5%. Analysts polled by FactSet expect $1.08 and $3.04 billion, respectively. Marvell shares were down 8.2%.Chevron (CVX) is nearing a deal to expand its operations in Venezuela by adding two new heavy-oil fields to its portfolio, The Wall Street Journal reported Friday, citing people familiar with the matter. Halliburton (HAL) is also in discussions to provide its suite of equipment to oil producers in Venezuela, the report said, citing the people. Chevron and Halliburton shares were up 0.6% and 1%, respectively.BioNTech (BNTX) said Friday that it terminated its phase 2 trial evaluating autogene cevumeran as an adjuvant monotherapy in patients with high-risk stage II or stage III colorectal cancer. The trial's independent safety board recommended discontinuing treatment and ending the trial, as further continuation was unlikely to change the efficacy outcome, the company said. BioNTech shares were down 7.5%.Amazon.com (AMZN) has signed a power purchase agreement in Germany and invested in four Swedish wind energy projects, the company said Friday. The e-commerce giant said it agreed to buy 600 megawatts of electricity from the planned Gennaker offshore wind farm in the Baltic Sea. Shares of Amazon were up 4.2%.Price: $54.41, Change: $-7.06, Percent Change: -11.49%
Marvell Technology (MRVL) is set for stronger growth as AI demand lifts optical networking, custom chips and data center sales, while Alphabet's (GOOG, GOOGL) Google program could add major revenue from fiscal 2029, RBC Capital Markets said in a note emailed Friday.The investment firm said it expects data center growth to stay strong, helped by rising demand for 800G and 1.6T optical products, with faster growth expected from newer scale-up networking uses.Marvell's custom chip business should accelerate through fiscal 2028, led by Amazon (AMZN) Web Services' Trainium and Microsoft's (MSFT) MAIA programs, with another major step-up expected in fiscal 2029, RBC said.Google is expected to become a bigger growth driver from fiscal 2029 and the program could push Marvell's custom chip revenue well above its current target of more than $10 billion, RBC said.RBC maintained its outperform rating and $360 price target for Marvell.Price: $222.26, Change: $-19.20, Percent Change: -7.95%
Technology stocks were lower pre-bell Friday, with the State Street Technology Select Sector SPDR ETF (XLK) retreating by 0.2% and the State Street SPDR S&P Semiconductor ETF (XSD) 1.2% lower.Elastic (ESTC) shares climbed more than 25% pre-bell Friday after the company reported higher fiscal Q1 non-GAAP earnings and revenue.Marvell Technology (MRVL) shares were down 7% following the company's fiscal Q2 results.Autodesk (ADSK) stock was 3% lower after the company issued a Q3 adjusted EPS outlook that fell short of the estimates of analysts surveyed by FactSet.
(Updates with the latest stock move in the first paragraph and details on the Google deal in the fifth and sixth paragraphs)Marvell Technology (MRVL) shares were down about 8% in Friday's premarket activity after the company's stronger-than-expected fiscal second-quarter results were overshadowed by investor concerns over the timing of revenue from its Google (GOOG) deal.The company reported fiscal Q2 adjusted earnings of $0.94 per diluted share late Thursday, up from $0.67 a year earlier. Analysts polled by FactSet expected $0.93.Revenue for the three months ended Aug. 1 was $2.74 billion, up from $2.01 billion a year earlier. Analysts expected $2.72 billion.For fiscal Q3, the company expects adjusted EPS of $1.10, plus or minus $0.05, on revenue of $3.15 billion, plus or minus 5%. Analysts expect EPS of $1.08 on revenue of $3.04 billion.Harlan Sur, an analyst at JPMorgan Securities, said during Marvell's earnings call that, at full performance, the Google agreement could represent about $120 billion in cumulative revenue over roughly 6.5 years, or about $18.5 billion annually when annualized.However, Marvell CEO Matt Murphy said revenue from programs covered by the agreement through fiscal 2028 is already included in the company's outlook. He said the programs are expected to contribute much more significantly to custom revenue in fiscal 2029 and beyond.
(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)US equity futures were mostly flat pre-bell Friday as traders awaited a highly anticipated keynote speech from Federal Reserve Chair Kevin Warsh.Dow Jones Industrial Average futures were 0.2% higher, S&P 500 futures were up 0.1%, and Nasdaq futures were 0.2% lower.Warsh is slated to speak at 10 am ET at the central bank's annual symposium in Jackson Hole, Wyoming, and traders will be looking for signals on where interest rates could go next.President Donald Trump on Thursday told reporters that the US is not talking to Iran. The US has turned to elevated economic pressure to force a reopening of the Strait of Hormuz and threatened Iran's trading partners. Iran's foreign ministry, in a letter published on Telegram, urged other countries not to implement US sanctions against it, calling the measures illegal.Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.9% at $87.72 per barrel and US West Texas Intermediate crude 1% lower at $82.67 per barrel.The Chicago purchasing managers index for August, due at 9:45 am ET, is seen coming in at 57.9, up from its prior value of 57.6, according to estimates compiled by Bloomberg.The final University of Michigan consumer sentiment report for August, scheduled at 10 am ET, is expected to show consumer sentiment index coming in at 51.0, unchanged from the prior period.In other world markets, Japan's Nikkei closed 0.4% higher, Hong Kong's Hang Seng ended 0.1% higher, and China's Shanghai Composite finished 0.1% lower. Meanwhile, the UK's FTSE 100 was up 0.2%, and Germany's DAX index was 0.5% higher in Europe's early afternoon session.In equities, Marvell Technology (MRVL) shares fell 7.7% after the company reported fiscal Q2 financial results late Thursday. PayPal (PYPL) stock was down more than 14% after Bloomberg reported that buyout firm Advent and payment-processor Stripe have abandoned their bid to buy the company. Autodesk (ADSK) shares were down 4.8% after the company issued lower-than-expected Q3 adjusted EPS guidance.On the winning side, Gap (GAP) stock rose over 17% after the company lifted its fiscal 2026 adjusted earnings guidance. Affirm (AFRM) shares were more than 13% higher after the company reported an increase in fiscal Q4 earnings and sales in addition to issuing an upbeat fiscal Q1 sales outlook.
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