Buyers bid shares of Marvell (MRVL) and Microchip (MCHP) higher in recent sessions. Marvell posted strong third-quarter results, sending shares up by 7.87% on Wednesday.
Analysts project that Marvell will post material strength for the next two years. They believe that Microsoft’s (MSFT) Maia 300 chips will drive Marvell’s revenue growth. Marvell could double its revenue by fiscal 2028.
Microchip gained 12.17% to break out from its downtrend that began in the summer. The firm is forecasting that its net sales and earnings will be at the top end of its guidance. The firm will earn $0.40 in the next quarter (non-GAAP), compared to a previous estimate that ranged from $0.34 - $0.40.
In China, Microchip’s business is solid and growing. Every year, its percentage of business in the country grew. Investors should ignore fears that China is a threat. Instead, Chinese competition is in the very low-end area of a commoditized market.
Among the stocks to avoid, Microsoft (MSFT) continued to weaken on the stock market. The chart indicated a bearish “double top” pattern at around $550. MSFT stock closed at $477.73, down by 7.6% in the last month. Momentum investors previously paid a premium for the stock, bullish on its investment in OpenAI. However, OpenAI’s growing quarterly losses are a risk.
Competition in the AI sector continues to accelerate almost weekly. That might cause OpenAI’s operating losses to worsen in the near term.
