Marvell: Don't Get Shaken Out Of The Sharp Sell-Off (Archive, Full Access)
MRVL's data center growth, custom chip ramp, and pricing power justify holding through correction.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.
Elevator Pitch
- Marvell benefits from exponential AI data center growth and leadership in 1.6T optical networking chips.
- Custom chip programs, including Microsoft Maia 300 and CXL memory expansion, are driving new revenue streams.
- Severe optical device supply tightness is supporting a 10-20% pricing hike through CY27, but the risk is that the impact on gross margins is probably priced in.
- Valuation multiple contraction has reduced the implied growth ask, although MRVL stock is still at a 13% to peers on 1-yr fwd PEs.
- Despite a sharp correction, MRVL's technical uptrend is still intact. Don't get shaken out of normal volatility in this high-beta stock.
Read the full article here.
