On Wednesday, Marvell (NASDAQ:MRVL) Technology, Inc. (NASDAQ:MRVL) announced it will host a special event titled "Accelerated Infrastructure for the AI Era" in New York City on April 11, 2024, from 10 AM to 12 PM ET. This event, which has not been paralleled by the company since October 2021, will feature presentations from Chairman and CEO Matt Murphy and other senior leaders. The previous investor event in 2021 saw Marvell's shares close with a 7.3% increase on the day, outperforming the S&P 500.
The upcoming analyst event is anticipated to be a significant catalyst for Marvell, especially as the company focuses on cloud AI Infrastructure momentum and demand. The event aims to provide investors with a clearer picture of Marvell's future growth expectations, particularly in the data center AI segment, which currently represents about 30% of this market.
Marvell's stock recently experienced a downturn, dropping 15% over two days following the Q4 2024 earnings report on March 7. The report included a first-quarter revenue guide that fell short of consensus expectations, with weaknesses in consumer, carrier, and enterprise segments not being sufficiently compensated by AI Infrastructure growth.
Despite the recent earnings setback, Roth MKM Derivative Strategy suggests that the AI event could offer a positive turnaround for the company's shares. The firm proposes an options strategy involving the sale of March 22nd $70 calls and the purchase of April 12th $70 calls, capitalizing on what is viewed as inexpensive volatility for the April expiry options.
Options market analysis indicates that the April 12th expiry options are not factoring in significant excess volatility for the event, with implied volatility modestly higher than for options expiring on April 5th, which do not include the event. The implied move for the day of the event is estimated at about 3.5%. This assessment suggests that the market may not be fully pricing in the potential impact of the AI-focused analyst event on Marvell's stock.
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