Stocks & indices

Marvell stock jumps on strong guidance and diversified customer base

Chipmaker Marvell's shares popped after the company not only delivered on its financial guidance but also showcased a more diversified mix of customers and products.

Investors took the report as a sign that the company is less dependent on a narrow set of customers.

For beginners Diversifying revenue across customers and products lowers a company's risk: if it doesn't depend on one large buyer, earnings become more predictable, which tends to boost investor confidence.