MRVL - Marvell: Even A Tiny Piece Of The AI Pie Means A Lot

2024-06-07 15:16:31 ET

Summary

• Marvell Technology's stock price has experienced significant fluctuations in recent years, driven by factors such as Fed policy and AI hype.
• The company is positioning itself in the data center AI chip market, with both compute and networking solutions.
• Despite facing competition, Marvell has the potential to capture a significant portion of the AI chip market, which could greatly impact its income.
• It faces cyclicality risks but its data center strength should benefit more than expected based on industry-level research by Gartner.

Marvell Technology, Inc.'s ( MRVL ) stock price has been on a roller coaster ride for the past three years with shares sliding from above $90 to about $35 in 2022 mostly as a result of the Fed aggressively tightening monetary policy. Then, May 2023 marked a recovery despite declining sales, driven mostly by the AI hype....

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