Chipmakers Broadcom and Marvell Technology diverged on their quarterly results Friday. AVGO stock rose after Broadcom's report, but MRVL stock fell on Marvell's news.
San Jose, Calif.-based Broadcom earned an adjusted $10.33 a share on sales of $8.92 billion in its fiscal first quarter ended Jan. 29. Analysts polled by FactSet had expected earnings of $10.17 a share on sales of $8.9 billion. On a year-over-year basis, Broadcom earnings rose 23% as sales increased 16%.
For the current quarter ending April 30, Broadcom forecast sales of $8.7 billion, up 7% from the same period last year. Wall Street had been predicting sales of $8.58 billion in the fiscal second quarter.
Meanwhile, Santa Clara, Calif.-based Marvell earned an adjusted 46 cents a share on sales of $1.42 billion in its fiscal fourth quarter ended Jan. 28. Wall Street had forecast earnings of 46 cents a share on sales of $1.4 billion. On a year-over-year basis, Marvell earnings dipped 8% as sales rose 6%.
For the current quarter, Marvell projected adjusted earnings of 29 cents a share on sales of $1.3 billion. Analysts had been expecting earnings of 42 cents a share on sales of $1.38 billion in the fiscal first quarter.
AVGO Stock Rises, MRVL Stock Falls
Broadcom and Marvell each reported quarterly results late Thursday.
On the stock market today, AVGO stock jumped 5.7% to close at 632.76. On Thursday, AVGO stock climbed 0.9% to 598.65.
Meanwhile, MRVL stock fell 4.7% Friday to close at 44.04. During Thursday's regular session, MRVL stock rose 1.9% to 46.23.
AVGO stock is on the IBD Tech Leaders and Big Cap 20 stock lists.
Analysts say Broadcom and Marvell, along with Nvidia, are likely beneficiaries of increased investment in artificial intelligence. Broadcom and Marvell provide high-speed networking and application-specific integrated circuits for high-performance computing systems.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
