This 4-Star Semiconductor Stock Trades at a 24% Discount
Morningstar boosted the chipmaker’s fair value estimate by 20% after it laid out ambitious growth targets at its investor day.
On the Oct. 12, 2026, episode of The Morning Filter podcast, guest host Sarah Hansen and Morningstar Chief US Market Strategist Dave Sekera discuss why Morningstar raised its
Why Morningstar Raised Its Fair Value Estimate on Marvell Stock
Hansen: Shares of chip designer Marvell MRVL also jumped last week after its investor day. What did we learn there, and what are your takeaways on Marvell stock?
Sekera: Yeah, I mean, it was a really strong investor day, and I think once we updated our model and included all the new information that came about really was the genesis for increasing our fair value up to $360 a share from $300. A pretty big bump in that fair value for a company that we’ve been quite constructive on for quite a long period of time. Now, specifically, our analysts noted that management’s guidance now is essentially looking for 58% annualized revenue growth through calendar 2030. I mean, that’s just a crazy amount of growth annually for the next several years yet to come.
Just to put that into perspective, they’d be looking for $80 billion of revenue and $30 billion of earnings based on the midpoints of their guidance. In calendar 2025, which was fiscal 2026, they only did $8.2 billion in revenue and $2.84 in earnings; just giant amounts of growth that the company is going out to the marketplace. Like most management companies, I suspect that they’re probably keeping a little bit back. I mean, most companies like to underpromise, overdeliver, but yet they’re still telling the market it’s going to be essentially a factor of 10 times the size of the company from 2025 through 2030. Once we adjusted our model upward to capture that, that led to our fair value increase. Stock looks attractive to us here at a 24% discount. That’s enough to put it in 4-star territory.
Subscribe to The Morning Filter on Apple Podcasts, or wherever you get your podcasts, and keep up with the latest research from hosts Susan Dziubinski and David Sekera on Morningstar.com.
3 Stocks to Sell and 3 Stocks to Buy for October 2026
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
United States