Citi upgrades Marvell, adds Nvidia to shopping list

|About: Marvell Technology Group, Ltd. (MRVL)|By:, SA News Editor

Citi analyst Atif Malik upgrades Marvell (NASDAQ:MRVL) from Hold to Buy and names Nvidia (NASDAQ:NVDA) to the "Citi Semis Christmas Shopping List."

Malik says Marvell's risk-reward looks attractive for the next 12 to 18 months after falling nearly 29% YTD. The analyst sees diversification and gross margin expansion related to Cavium's networking business expanding P/E multiples.

On Nvidia, Malik thinks gaming expectations have been de-risked for the January quarter while data center sales estimates look reasonable. Malik expects mid-range Pascal card prices normalizing to come in at or below MSRP.

Source: Bloomberg First Word.

Marvell shares are up 2% premarket to $15.66.

Nvidia shares are up 1.3% to $150.80.

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