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Marvell Technology Inc MRVL

Morningstar Rating
$73.27 +0.40 (0.55%)
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Company Report

Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75

We raise our fair value estimate for narrow-moat Marvell Technology to $75 per share, from $65, as we raise our medium-term revenue forecast to account for significant growth in generative artificial intelligence sales. We believe Marvell will be a significant beneficiary of investment into generative AI with diverse exposure across custom accelerators, optical chips, and merchant switch chips. Management now sees upside to the targets provided at its AI investor day in April, which we see as positive and aligned with our bullish long-term growth thesis. Marvell’s non-AI end markets remained weak in the first fiscal quarter, but we believe AI strength will more than offset weakness elsewhere through fiscal 2025, and that softer demand is a short-term dynamic. We see Marvell as fairly valued. Investors eager to play into generative AI may see a good opportunity currently, given overvaluations of other AI beneficiaries under our coverage.

Price vs Fair Value

MRVL is trading at a 273% premium.
Price
$73.27
Fair Value
$98.00
Uncertainty
High
1-Star Price
$262.92
5-Star Price
$13.00
Economic Moat
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Capital Allocation
Ypcmhjzvb

Bulls Say, Bears Say

Bulls

Marvell’s strong position in optical chips and its burgeoning custom chip business offer a strong foothold into generative AI infrastructure, which should fuel high growth.

Bears

Marvell remains a distant second to Broadcom in networking chip market share and will face an uphill battle overcoming its customer relationships.

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News

Trading Information

Previous Close Price
$72.87
Day Range
$71.6573.48
52-Week Range
$46.0785.76
Bid/Ask
$72.15 / $73.24
Market Cap
$63.42 Bil
Volume/Avg
6.0 Mil / 12.1 Mil

Key Statistics

Price/Earnings (Normalized)
50.89
Price/Sales
11.83
Dividend Yield (Trailing)
0.33%
Dividend Yield (Forward)
0.33%
Total Yield
0.80%

Company Profile

Marvell Technology is a fabless chip designer focused on wired networking, where it has the second-highest market share. Marvell serves the data center, carrier, enterprise, automotive, and consumer end markets with processors, optical and copper transceivers, switches, and storage controllers.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Growth
Total Number of Employees
6,577

Competitors

Valuation

Metric
MRVL
AVGO
NVDA
Price/Earnings (Normalized)
50.8939.8473.27
Price/Book Value
4.3811.4966.01
Price/Sales
11.8318.3041.23
Price/Cash Flow
46.3536.5474.21
Price/Earnings
MRVL
AVGO
NVDA

Financial Strength

Metric
MRVL
AVGO
NVDA
Quick Ratio
1.180.762.88
Current Ratio
1.801.253.53
Interest Coverage
−2.534.72188.51
Quick Ratio
MRVL
AVGO
NVDA

Profitability

Metric
MRVL
AVGO
NVDA
Return on Assets (Normalized)
5.83%17.62%77.05%
Return on Equity (Normalized)
8.30%48.13%126.37%
Return on Invested Capital (Normalized)
7.20%23.28%94.38%
Return on Assets
MRVL
AVGO
NVDA
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