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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