Marvell could produce 'solid' January results, outlook: J.P. Morgan
Sundry Photography/iStock Editorial via Getty Images

Marvell Technology (NASDAQ:MRVL) is slated to report fourth-quarter earnings after the close on Thursday and J.P. Morgan reiterated its overweight rating, noting it expects a "solid" report and outlook as 5G, cloud and auto spending are strong.
Analyst Harlan Sur, who has a $100 price target, said he believes the pending quarterly results will top estimates and guidance for the next quarter will come in better-than-expected, even off a strong number last year.
"We believe demand (Jan/Apr Qtrs) remains strong through 2022 across all its end markets (datacenter, carrier infrastructure, enterprise, auto/industrial, and consumer) driven by multi-quarter demand drivers like cloud data center build-outs (200/400G PAM4 optical connectivity, 400ZR datacenter interconnect, ASIC, DPU, and HDD/SDD storage controllers), auto design win pipeline unfolding, 5G infrastructure deployments, and continued enterprise/campus recovery," Sur wrote in a note to clients.
Marvell shares were slightly lower in premarket trading, falling slightly more than 1% to $67.90.
In addition, Sur noted that Marvell's operations have built strong relationships with suppliers, which should support 35% revenue growth this year and every quarter growing over the previous period.
"Near/mid-term, we believe demand continues to outstrip supply, leading to an expanding unfulfilled backlog," Sur added.
Cisco (NASDAQ:CSCO), which is Marvell's largest enterprise networking customer, delivered strong year-over-year trends, with its product orders growing 33% year-over-year, which should help. Other customers, such as Samsung (OTC:SSNLF), Nokia (NYSE:NOK) and Ericsson (OTCPK:ERIAF), which all get Marvell components for 5G components, are also seeing ramps in new products. 
"Bottom line, we continue to believe consensus estimates for CY22 are too low and the market continues to underestimate the numerous and diverse product cycles across Marvellâs storage/networking/ASIC franchises," Sur explained.
Marvell was listed as one of Bank of America's top 10 covered call option plays earlier this month.