The shares of semiconductor company Marvell Technology (NASDAQ:MRVL) soared to their $88.49 all-time price high on December 3, 2021, driven by better-than-expected third-quarter earnings. But can the stock continue to rally despite the intense competition the company faces? Let’s find out.Shares of data infrastructure semiconductor solutions provider Marvell Technology, Inc. (MRVL) have gained 18.9% in price over the past month to close yesterday’s trading session at $85.43. Also, the stock soared to hit its $88.49 all-time price high on December 3, 2021, on the back of better-than-expected third-quarter results.
MRVL's net revenue increased 61.5% year-over-year to $1.21 billion for the quarter, beating the consensus estimate by 5.5%. While its non-GAAP net income increased 116.4% year-over-year to $364.32 million, its non-GAAP EPS came in at $0.43, up 72% year-over-year and 12.2% higher than the consensus estimate.
On December 2, the Hamilton, Bermuda-based company introduced the industry's first multi-gig Ethernet camera bridge solution, the 88QB5224, for best-in-class video distribution in connected vehicles. However, MRVL faces intense competition from other players in the semiconductor space, such as NXP Semiconductors N.V. (NASDAQ:NXPI) and Micron Technology, Inc. (NASDAQ:MU). Moreover, MRVL’s President, Products and Tech, Raghib Hussain, sold 324,957 shares in November, and its Director, Michael Strachan, sold 5,000 shares in September. So, MRVL’s near-term prospects do not seem very promising.