Technology

Broadcom’s Earnings Power Seen at $70-$75/Share in Long Term Amid Double-Digit Sales Growth, BofA Says

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Broadcom (AVGO) is expected to post double-digit growth in sales in fiscal years 2024 and 2025, giving the company earnings power in the $70 to $75 per share range in the long term, BofA Securities said in a report Friday. The brokerage reiterated its buy rating on the stock as it raised its price target to $1,680 from $1,500, after the company maintained its revenue guidance of around $50 billion for fiscal 2024. BofA expects fiscal 2024 EPS at $46.70, little changed from its previous estimate of $46.72, but it raised its fiscal 2025 EPS estimate to $57.82 from $56.37. “We believe 1H could mark the trough for AVGO’s non-AI semi sales, with semi sales accelerating to double digit growth exiting Q4 and into FY25,” BofA said. “Meanwhile, we think AI sales could secularly grow at a 20-25% [compound annual growth rate] with more contribution from high-speed switches.” BofA said

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MongoDB May Surprise ‘If History Is Any Indication,’ RBC Says

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MongoDB (MDB) may be conservative with its forward guidance, RBC Capital Markets said Friday, but sees plenty of upside for the database company on growth and margin. MongoDB late Thursday forecast revenue growth in a range of 13% to 15% for its current fiscal year that began Feb. 1. The guidance lagged consensus views of 22% increase, weighing on MongoDB shares during extended hours Thursday and regular trading Friday. However, the company’s Q4 reported revenue topped estimates and may be poised to do it again. “We see plenty of levers to upside on both growth and margins, suggesting a similar level of conservatism baked into guidance as years past,” the investment firm said. RBC maintained its outperform rating for MongoDB with a $475 price target. MongoDB shares were 6% lower in recent trading.

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MongoDB’s Concerns About Outlook Despite Strong Q4 Results: Analysts Revise Forecasts

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MongoDB Inc (NASDAQ:MDB) shares were down on Friday after the company reported its fourth-quarter results and issued weak guidance. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. DA Davidson On MongoDB Analyst Rudy Kessinger upgraded the rating from Neutral to Buy, while raising the price target from $405 to $430. Although MongoDB reported strong fourth-quarter results, its shares slid on disappointing fiscal 2025 guidance, which projected growth of 13%-15% and operating margins of around 10%, missing the consensus estimate of 22% and 14%, respectively, Kessinger said in the upgrade note. “Rev will face a $80M headwind in FY25 from multi-year term licenses ($40M) & unused Atlas commitments ($40M) that will not repeat,” the analyst stated. “This is very high GM Rev that is not repeating, and when combined with accelerated hiring, OMs will take a step back from 16% in FY24,” he

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Broadcom Is A Buy For ‘AI, Dividends And M&A Benefits,’ Analyst Says: Takeaways From Q4 Earnings

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Broadcom Inc (NASDAQ:AVGO) shares were down on Friday, even after the company reported upbeat fourth-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. JPMorgan On Broadcom Analyst Harlan Sur maintained an Overweight rating while lifting the price target from $1,550 to $1,700. Broadcom delivered better-than-expected quarterly results and reiterated its full-year outlook of $50 billion in revenues and 60% EBITDA margin, “on sustained momentum in semiconductors and solid growth in its mission critical software franchise,” Sur wrote in a note. “For its semiconductor business, the team saw accelerating demand for its AI solutions ($2.3B in the Jan-Qtr, up 50%+ Q/Q) which offset weakness in its core diversified semi business (ex-AI ~$5.1B down 12% Q/Q,” Sur added. Goldman Sachs On Broadcom Analyst Toshiya Hari maintained a Buy rating while bumping the price target from $1,325 to $1,550. Broadcom delivered “solid” results for

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Broadcom Poised for Second-Half Growth Acceleration Amid VMWare, AI Strengths, BofA Says

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Broadcom (AVGO) is expected to see growth acceleration in the second half of the year as VMWare bookings are off to a strong start and the company’s artificial intelligence pipeline is “solid,” BofA Securities said Friday. Late Thursday, the chipmaker logged stronger-than-expected fiscal first-quarter results as it benefited from its VMware acquisition, completed in November, as well as AI demand. The company continues to project 2024 consolidated revenue advancing 40% year over year at $50 billion. Although the company held its outlook steady, the sales mix is shifting more towards AI, which is now pegged to top $10 billion, up from $7.5 billion estimated previously, BofA analyst Vivek Arya said in an emailed note. VMWare has seen a strong start to the year, with overall company software bookings set to almost double sequentially to $3 billion in the current quarter and VMWare sales seen increasing 10% every quarter, according to

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Marvell Technology Poised for ‘Material Snapback’ Following Disappointing Quarterly Outlook, Morgan Stanley Says

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Marvell Technology’s (MRVL) fiscal first-quarter outlook was well short of expectations, though the semiconductor solutions provider is likely to stage a “material snapback,” aided by strong prospects in its cloud custom silicon business, Morgan Stanley said Friday. Late Thursday, the company said it expected first-quarter adjusted earnings of $0.23 a share, plus or minus $0.05, and net revenue of $1.15 billion, plus or minus 5%. Morgan Stanley was looking for $0.43 and $1.40 billion, respectively. Sequentially, Marvell sees consumer, carrier, and enterprise networking sales slumping by 70%, 50%, and 40%, respectively, Chief Executive Matt Murphy said on an earnings conference call late Thursday, according to a Capital IQ transcript. The company’s shares were down nearly 11% in late Friday afternoon trade. Although the magnitude of the outlook miss was surprising, it is expected to mark the bottom, with a “material snapback” likely amid positive commentary around the cloud custom silicon

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Marvell Technology (NASDAQ:MRVL) Q4 2024 Earnings Conference

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The following is a summary of the Marvell Technology, Inc. (MRVL) Q4 2024 Earnings Call Transcript: Financial Performance: Marvell Technology reported Q4 revenue of $1.43 billion, up 1% sequentially. Gross margin increased by 330 basis points. The quarterly earnings per share was $0.46, a sequential increase of 12%. Data center revenue was a record $765 million, a year-over-year increase of 54%. Fiscal 2024 reported revenue was $5.5 billion. Company plans to increase stock repurchases in Q1 2025. Business Progress: Marvell is focusing on AI infrastructure and data center market for fiscal 2025. Company continues collaborating with TSMC to develop 2-nanometer semiconductors for accelerated infrastructure. Significant revenue contributions are expected from AI cloud optimized programs in fiscal 2025. Successful product qualifications of 1.6T products supports this goal. Plans to expand customer base in data center market with new design wins. Reported double digit revenue growth in automotive sector from new ethernet

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