2024-07-17 09:00:00 ET
Summary
- MRVL's well-diversified offerings across different end markets have triggered robust growth prospects, previously in automotive and now in data centers.
- The management has offered promising commentaries of its sales through FY2026 (CY2025), underscoring why the generative AI boom remains a tailwind.
- Readers must not forget its consumer/automotive opportunities moving forward, with Q2'24 and H2'24 to bring forth improved numbers, thanks to the bottoming inventory and growing design wins, respectively.
- Despite trading at a premium, MRVL offers a compelling long-term investment thesis, warranting our reiterated Buy rating.
- Even so, based on the recent market rotation, interested investors may want to add after a moderate pullback to its YTD support levels for an improved margin of safety.
We previously covered Marvell Technology, Inc. ( MRVL ) in September 2022, discussing the drastic decline in its stock prices as the company struggled to deliver during the EV boom, attributed to the global supply chain issues.
Even so, we believed that the headwinds were likely to be temporary, since the company's well-diversified offerings across different end markets were likely to drive its eventual recovery in both financial and stock performances, resulting in our Buy rating then....
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Marvell's AI Chip Story Has More Upside Ahead