MRVL Stock Recent News

Marvell Technology's AI networking and custom compute chips are well-positioned to bolster its AI growth inflection prospects. It faces tough competition against Broadcom while attempting to gain more share against customers adopting merchant silicon. However, increasingly expensive AI training requirements could compel tier-one hyperscalers to turn to Marvell's custom AI compute and networking portfolio.

Recently, Zacks.com users have been paying close attention to Marvell (MRVL). This makes it worthwhile to examine what the stock has in store.

Marvell's diverse end markets provide diversification, but until this last quarter, the strong data center growth has been more than offset by weakness in other end markets. With management confidently stating that enterprise networking and carrier markets have bottomed and sequential growth anticipated, most of Marvell's business is now moving in the same positive direction. I see strong upside for the second half due to better-than-expected custom silicon ramps and optics business.

Shares of Marvell Technology Inc (MRVL, Financial) surged 3.26% in mid-day trading on Oct 2. The stock reached an intraday high of $72.87, before settling at $72.60, up from its previous close of $70.31.

Marvell Technology's stock has not made a great deal of progress since we last covered it and is effectively down by 9%. We are now revising our rating from a HOLD to a BUY. The AI-related momentum is proving to be better than expected, whilst the non-data center related segments have stabilized and are looking to grow from a low base.

Arm's chips are everywhere, and its high-margin business model could translate to phenomenal returns. Marvell stands to benefit from the AI infrastructure buildout as well as a recovery in its non-AI businesses.

I reiterate a buy rating for Marvell Technology (MRVL) due to expected growth acceleration and EBITDA margin expansion. The Data Center segment's revenue grew 7.9% sequentially, and with no signs of slowdown in data center investments, I expect to continue leading MRVL's growth. Margin expansion is supported by strong operating leverage, which should result in increased cash generation, enabling more capital returns to shareholders.

Marvell (MRVL) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.

Delivering Breakthrough Technologies Designed to Meet the Rising Demand for Bandwidth Across AI-Driven Data Centers and Networks SANTA CLARA, Calif. , Sept. 20, 2024 /PRNewswire/ --  ECOC 2024  – Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, will showcase its industry-leading optical technology designed to meet the rising performance demands of AI cloud data centers at the European Conference on Optical Communication (ECOC) 2024, September 22–26 at the Congress Center Messe Frankfurt, Germany.

Marvell (MRVL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.