Marvell Technology shares jumped in premarket trading on Wednesday after the chipmaker posted strong quarterly results and issued a rosy outlook amid robust demand for its custom AI chips. The company’s guidance for fourth-quarter revenue of $1.80 billion handily surpassed the consensus forecast of $1.65 billion.
Investors should monitor important support levels around $95, $84, and $76 on Marvell’s chart, as breaking below these areas could see shares fall to lower prices. Despite this, analysts are optimistic about the stock’s prospects, citing a bullish chart pattern that indicates a continuation of the uptrend.
A key technical analysis tool, the bars pattern, predicts an overhead target of around $120, which is about 25% above Tuesday’s closing price. This forecast is based on repositioning prior price bars from the ascending triangle’s lower trendline and taking into account the stock’s trending move between October and November.
The company’s CEO, Matthew Murphy, previously stated that AI network and custom processor chip sales are expected to reach $2.5 billion by fiscal 2026, indicating a significant growth trajectory for Marvell Technology. With shares up more than 60% since the start of the year, investors should remain cautious but continue to monitor the stock’s performance closely.
Source: https://www.investopedia.com/marvell-technology-price-levels-to-watch-as-stock-soars-after-strong-earnings-8754987