Marvell: Upgrading To Buy; Negatives Priced In

Summary

  • We’re upgrading Marvell Technology Inc to a buy as we now see a more favorable risk-reward profile for stock.
  • 3QFY24 results and the soft 4QFY24 outlook have clearly reflected our negative thesis on the stock.
  • MRVL stock price has declined 12% in the past two quarters, underperforming the market by 20%.
  • We think the current demand headwinds in its cloud storage and carrier/enterprise networking businesses are now priced into the stock.
  • We now believe MRVL can outperform through 1HFY25 driven by continued growth in its data center AI connectivity coupled with demand recovery in its cloud storage.
  • Tech Contrarians members get exclusive access to our real-world portfolio. See all our investments here »

The lush green trees rise up into the air

Ignatiev

We're upgrading Marvell Technology, Inc. (NASDAQ:MRVL) to a buy. 3Q24 results and outlook confirmed that our negative thesis of A.I. growth not being sufficient to support financial outperformance is playing out. Management guided lower than consensus this quarter for

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This article was written by

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Tech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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