Marvell Technology rises after 'strong' Q1, guidance, analysts note potential for acceleration
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Marvell Technology (NASDAQ:MRVL) shares rose on Friday after the chipmaker posted what analysts called a "strong" first-quarter and issued guidance above expectations, with several analysts noting the potential for stronger growth in the second half of the year.
KeyBanc Capital Markets analyst John Vinh said the "strong" results and guidance were largely due to strength in data center and telecom infrastructure. The ramp in the second-half is expected due to a rise in cloud Ethernet switches and custom design wins coming in the next few years and the potential for additional supplies to come back online. 
Marvell's (MRVL) chips are manufactured by Taiwan Semiconductor (TSM), which is looking to expand production around the world.
We remain [overweight] as [Marvell] represents one of the most compelling secular growth stocks in semiconductors," Vinh wrote in a note to clients, though he lowered his price target to $90 from $95.
Marvell Technology (MRVL) shares rose more than 5% to $60.13 in premarket trading on Friday.
BMO Capital Markets analyst Ambrish Srivastava noted that the stronger guidance should help assuage concerns. Srivastava kept the outperform rating on Marvell (MRVL) shares and lowered the per-share price target to $82 from $98.
Marvell (MRVL) reported adjusted earnings of 52 cents per share on $1.45B in sales, compared to estimates of 51 cents per share on $1.44 billion in revenue.
Looking ahead to the second-quarter, Marvell (MRVL) expects GAAP gross margins to be 51.9% and non-GAAP gross margins to be 65.5%, while revenue is expected to be $1.515B, plus or minus 3%. 
Adjusted earnings are forecast to be between 53 cents and 59 cents per share.
Ahead of earnings, investment firm Morgan Stanley said Marvell Technology (MRVL) had the potential to report strong quarterly results this week, highlighting strength in telecom, networking and cloud spending.