– MAILBAG –Member: What is Alex’s “take” on the Marvell Technology (MRVL) earnings report? Is stock still a Buy? It’s a 10 Baggers of Tomorrow position. – Ken W.
Chief Investment Strategist Alexander Green: Quarterly results – and near-term outlook – were a disappointment, but this is a long-term buy. Any time we change a recommendation on a stock, it will show up on our website (and in a Safety Switch Alert) immediately.
MRLV----It's still recommended on my trading service as a "ten bagger"
- My Membership
- The Oxford Communiqué
- All Updates
Jump on the Pullback in Marvell TechnologyBy Alexander Green | July 22, 2025
Several stocks in our Ten-Baggers of Tomorrow Portfolio have performed well for us.
One of the leaders is Marvell Technology (Nasdaq: MRVL). Our shares are up 189%.
However, the stock has pulled back substantially from its 52-week high in late January.
I would use this as a buying opportunity. Here’s why…
Marvell isn’t a household name like Nvidia or AMD. But it should be on every serious investor’s radar.
Quietly and efficiently, Marvell has carved out a critical role in the semiconductor space – especially in areas primed for explosive growth: AI infrastructure, data centers, 5G, and automotive connectivity.
Investors everywhere are focused on Nvidia’s chips.
But here’s what most of them miss: Behind every AI system is a web of connectivity, storage, and custom silicon optimized for moving data faster and more efficiently.
That’s where Marvell shines…
Unlike traditional chipmakers focused on general-purpose semiconductors, Marvell specializes in custom ASICs (application-specific integrated circuits).
These chips are designed for specific tasks – like handling AI workloads inside hyperscale data centers. And demand is soaring.
In its latest earnings call, Marvell projected that AI-related revenue would exceed $400 million this quarter, doubling from the previous quarter.
For the full fiscal year, AI revenue is expected to hit $2.5 billion – a more than 4X increase year over year.
Marvell isn’t just riding the AI wave. It’s one of the companies making that wave possible.
Beyond AI, Marvell’s chips are embedded in some of the most important technologies driving global connectivity.
Its data center products power high-speed networking switches used by Amazon Web Services, Microsoft Azure, and Google Cloud.
In the 5G space, Marvell supplies system-on-chip solutions to Nokia, Samsung, and Ericsson.
While 5G rollouts have been slower than expected, the long-term upgrade cycle is inevitable – especially as the world pushes into the Industrial Internet of Things and edge computing.
Then there’s the automotive market.
Modern vehicles are data centers on wheels, and Marvell is enabling Ethernet-based architectures that handle everything from driver assistance to infotainment.
The growing complexity of automotive systems, especially in electric and autonomous vehicles, creates new opportunities for semiconductor manufacturers.
It’s still a small piece of their revenue pie – but growing fast.
As businesses and consumers increasingly rely on cloud services, 5G networks, and artificial intelligence, Marvell’s products are becoming more and more essential.
The company has a diversified portfolio that spans multiple high-growth markets, decreasing its dependency on any single sector.
It maintains its technological edge by investing in cutting-edge research and development.
It has a long history of successful acquisitions that have expanded its product line and market reach.
And it has established strong partnerships with major technology firms and original equipment manufacturers, ensuring a stable customer base.
For example, collaborations with Samsung and Taiwan Semiconductor have enabled it to leverage advanced manufacturing technologies and bring innovative products to market more quickly.
The numbers here are excellent.
Revenue at Marvell is growing at a 63% annual rate. The firm has a major stock repurchase plan. And I expect earnings per share to accelerate from $2.80 this year to nearly $4 in 2026.
CEO Matt Murphy says the company is accelerating the introduction of its next-generation products “to meet AI’s insatiable need for the highest bandwidth at the lowest power.”
He adds that “the Marvell team is firing on all cylinders, and we see a very favorable setup to significantly scale up the company… We are well positioned to deliver outstanding financial returns to our stockholders.”
The firm faces numerous opportunities across compute, interconnect, switching, and storage.
It has a world-class management team with deep technical expertise, vast industry experience, and a proven track record.
The company’s profit margins are protected by more than 12,000 global patents.
In short, Marvell will transform the cloud, industrial, and AI markets for years to come.
As the demand for advanced semiconductors keeps growing, expect this stock to move substantially higher.
Good investing,
Alex |
