Latest news with #MarvellTechnology
Yahoo
3 days ago
- Business
- Yahoo
Here are the Reasons to Add Marvell Technology (MRVL) to Your Portfolio
ClearBridge Investments, an investment management company, released its 'ClearBridge Large Cap Growth Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the growth stocks rebounded from tariff uncertainty, with technology and communication services sectors leading in the return to a risk-on environment. The S&P 500 Index returned 10.9% in the quarter, while the technology-heavy NASDAQ Composite soared 17.7%. The benchmark, the Russell 1000 Growth Index, rose 17.8% in the quarter, outperforming the Russell 1000 Value Index. Against this backdrop, the strategy underperformed its benchmark in the second quarter. IT and communication services sectors contributed to the performance while the health care sector detracted. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure. The one-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was 15.38%, and its shares gained 4.13% of their value over the last 52 weeks. On July 3, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $75.18 per share, with a market capitalization of $64.82 billion. ClearBridge Large Cap Growth Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its second quarter of 2025 investor letter: "We also added a starter position in Marvell Technology, Inc. (NASDAQ:MRVL) in June. Marvell is a company we have been tracking through our ownership of Nvidia and work on the AI semiconductor complex over the last several years. Similar to Broadcom, Marvell designs chips and networking equipment that power technologies like AI, cloud computing and 5G infrastructure and has a particularly strong interconnect business. While Marvell has a high-quality asset portfolio to compete in the custom application-specific integrated circuits (ASICs) chip business, the stock has lagged AI accelerator peers like Nvidia and Broadcom as its ramp in AI revenue has been slower than others in the ecosystem. We believe this dynamic can reverse in coming years as more of Marvell's customer wins ramp up. Marvell's valuation has compressed significantly over the past six to nine months and the stock now trades at a healthy growth-adjusted discount to AI semi peers, providing an attractive entry point." An assembly line in a semiconductor factory, with workers at their stations. Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the first quarter, which was 105 in the previous quarter. Marvell Technology, Inc. (NASDAQ:MRVL) reported a record revenue of $1.895 billion in the first quarter of fiscal 2026, marking a 4% sequential increase and strong 63% year-over-year growth. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Marvell Technology, Inc. (NASDAQ:MRVL) and shared the list of buzzing AI stocks on Wall Street. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
MRVL's Margin Pressure Mounts as AI Revenues Rise: Is it Sustainable?
Marvell Technology 's MRVL top line is growing on the back of custom AI silicon chips that are experiencing massive traction among hyperscalers. However, Marvell Technology's gross margin has been moving inconsistently for the past several quarters, with a long-term declining trend. MRVL's robust top-line growth is coming from the massive traction in its custom AI XPUs, electro-optics solutions and custom high bandwidth memory chips, which enable longer reach scale-up fabric connections for custom AI servers and improve bandwidth. The Co-Packaged Optics improves performance by increasing XPU density. However, Marvell Technology's custom AI silicon, including XPUs, which are driving its revenue growth, comes with higher costs associated with manufacturing these chips. The margin in the AI-focused custom silicon semiconductor business is fundamentally lower, further affecting MRVL's total gross margin. Marvell's non-GAAP gross margin has declined 260 basis points from the year-ago quarter and 30 basis points sequentially to 59.8% in the first quarter of fiscal 2026. For the second quarter of fiscal 2026, MRVL has projected a non-GAAP gross margin range of 59% to 60%, which is lower than the second quarter of fiscal 2025's gross margin of 61.9%. Nevertheless, as MRVL's other business segments are on the path of recovery so this margin pressure might ease out in the long run. How Competitors Fare Against MRVL The contraction in gross margin is not the only challenge faced by MRVL stock at present. The company also faces massive competitive pressure from Broadcom AVGO and Advanced Micro Devices AMD in the custom silicon solutions space. Broadcom's advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs. Broadcom's Semiconductor segment, which accounts for its custom silicon solutions, grew 11% year over year in the first quarter of fiscal 2025. Advanced Micro Devices' custom silicon solutions and AI accelerators, like Instinct Accelerators, power numerous data centers. Advanced Micro Devices' reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. MRVL's Price Performance, Valuation and Estimates Shares of Marvell have lost 32.2% year to date against the Electronics - Semiconductors industry's growth of 13.3%. From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.23X, lower than the industry's average of 8.63X. The Zacks Consensus Estimate for Marvell Technology's fiscal 2026 and 2027 earnings implies year-over-year growth of 77.7% and 27.73%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days. Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Marvell Technology, Inc. (MRVL) is Attracting Investor Attention: Here is What You Should Know
Marvell Technology (MRVL) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this chipmaker have returned +12%, compared to the Zacks S&P 500 composite's +5% change. During this period, the Zacks Electronics - Semiconductors industry, which Marvell falls in, has gained 12%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Marvell is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of +123.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%. The consensus earnings estimate of $2.79 for the current fiscal year indicates a year-over-year change of +77.7%. This estimate has changed +0.7% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $3.57 indicates a change of +27.7% from what Marvell is expected to report a year ago. Over the past month, the estimate has changed +0.2%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Marvell is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Marvell, the consensus sales estimate for the current quarter of $2.01 billion indicates a year-over-year change of +57.9%. For the current and next fiscal years, $8.22 billion and $9.76 billion estimates indicate +42.6% and +18.6% changes, respectively. Marvell reported revenues of $1.9 billion in the last reported quarter, representing a year-over-year change of +63.3%. EPS of $0.62 for the same period compares with $0.24 a year ago. Compared to the Zacks Consensus Estimate of $1.88 billion, the reported revenues represent a surprise of +1.04%. The EPS surprise was +1.64%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Marvell is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Marvell. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Bloomberg
4 days ago
- Business
- Bloomberg
Bloomberg Businessweek Daily: S&P 500 Hits Record
Watch Bloomberg Businessweek Daily LIVE every day on YouTube: A rally in several big techs fueled gains in stocks, with the market extending its advance as President Donald Trump said he reached a trade deal with Vietnam. Treasuries fell as a selloff in UK bonds underscored deficit worries. The dollar was steady. Following earlier losses driven by weak jobs data, the S&P 500 rose to fresh all-time highs. Nike Inc. climbed alongside other apparel and footwear companies amid hopes the latest US trade deal will avert a potential supply-chain catastrophe. Tech megacaps led gains, with Tesla Inc. jumping 5% as a drop in sales was seen as better than feared. Marvell Technology Inc. slid about 2.5% on a report that Microsoft Corp. is scaling back its ambitions for AI chips to overcome delays. Longer-dated Treasuries underperformed, following moves in the UK, where concerns about Chancellor of the Exchequer Rachel Reeves' future reignited questions over the nation's fiscal position. Investors have raised similar concerns in the US, where the Senate passed Trump's sweeping tax and spending bill. In the run-up to the jobs report, economists forecast employers added 110,000 jobs in June — the fewest in four months — amid a slight rise in the unemployment rate to 4.3%. The Bureau of Labor Statistics report is due Thursday, a day earlier than usual because of the Independence Day holiday. Data Wednesday showed employment at US companies fell for the first time in over two years. Despite signs of a downshift, Federal Reserve Chair Jerome Powell has repeated the labor market remains solid. Policymakers have refrained from lowering interest rates this year as they wait to see the impact of tariffs on inflation. Today's show features: Brent Meyer, Assistant Vice President and Economist in the Economic Survey Research Center at the Federal Reserve Bank of Atlanta and Bloomberg TV and Radio International Economics & Policy Correspondent Mike McKee on a new report from the Atlanta Fed: 'The Evolving Impact of Tariffs on CFOs' Outlook' Bloomberg Businessweek writer Deena Shanker on her story about SNAP cuts in the Federal tax and spending bill potentially hurting people in red and blue states alike Bloomberg Businessweek Editor and Writer Laura Bliss on her Bloomberg Big Take about landfills around the US reaching scorching temperatures and getting nearby residents sick Fred Thiel, Chairman and CEO of MARA on the regulatory outlook for Bitcoin and the company's energy consumption and deployment strategy in terms of Bitcoin mining
Yahoo
5 days ago
- Business
- Yahoo
Piper Sandler Backs Marvell's (MRVL) XPU Strategy With Bullish Call
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the On July 1, Piper Sandler analyst Harsh Kumar reiterated an 'Overweight' rating on the stock with an $85.00 price target, citing the company's XPU growth strategy. The firm is confident that Marvell's XPU strategy is on track and will ramp up significantly in the near to mid-term timeframe. It considers Marvell to be one of the two companies that possess intellectual property to service the leading-edge XPU market for hyperscaler customers. 'Growth to be Driven by XPU Proliferation; Last week, we had the opportunity to host management meetings with MRVL. We came away reaffirmed that the growth strategy for the company related to their XPU strategy is on track and is set to ramp significantly in the near to mid-term time frame." Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None. Sign in to access your portfolio
