Marvell (MRVL) AI Stock Analysis

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Marvell

(NASDAQ:MRVL)

Rating:73Outperform

Price Target:

$77.00

▲(14.60%Upside)

Marvell's strong revenue growth and strategic focus on AI and data centers, highlighted in the earnings call, are major positives. However, challenges in profitability and valuation constraints temper the overall score. Technical indicators add to the positive outlook, but caution is advised due to potential overvaluation.

Positive Factors

New Product Demand

AI networking demand remains strong, with the demand for Marvell's new products beginning to ramp up significantly.

Partnerships and Collaborations

Marvell is engaged with its lead XPU customer, Amazon, on the follow-on generation (Trainium3), indicating continued collaboration and future projects.

Production Capacity

Marvell has secured 3nm wafer and advanced packaging capacity and expects to start production in CY26, alleviating investor concerns about losing the socket to Alchip.

Negative Factors

Earnings Guidance

The in-line guide may be viewed as somewhat disappointing for some, despite strong hyperscale demand and positive results from other companies.

Market Sentiment

Investors are not particularly thrilled by the firm’s relatively modest upside results and guidance, especially in comparison to Nvidia’s standout performance.

Marvell (MRVL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$60.04B

Dividend Yield0.34%

Average Volume (3M)19.56M

Price to Earnings (P/E)―

Beta (1Y)2.41

Revenue Growth21.60%

EPS Growth50.00%

CountryUS

Employees7,042

SectorTechnology

Sector Strength79

IndustrySemiconductors

Share Statistics

EPS (TTM)0.62

Shares Outstanding862,200,000

10 Day Avg. Volume21,938,640

30 Day Avg. Volume19,562,283

Financial Highlights & Ratios

PEG Ratio-0.01

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio58.39

Enterprise Value/Market Cap0.27

Enterprise Value/Revenue0.70

Enterprise Value/Gross Profit5.69

Enterprise Value/Ebitda5.17

Forecast

1Y Price Target

$89.86

Price Target Upside33.74% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering31

Marvell Business Overview & Revenue Model

Company DescriptionMarvell Technology, Inc. (MRVL) is a global leader in the semiconductor industry, focusing on the development and production of data infrastructure technology. The company designs and manufactures a wide range of products including data processing units, storage accelerators, and networking solutions. Marvell serves various sectors such as automotive, data centers, enterprise networks, and consumer electronics, providing essential components that enable high-performance data processing and connectivity.

How the Company Makes MoneyMarvell Technology generates revenue primarily through the sale of semiconductor products and solutions. The company's revenue streams are categorized into product sales, licensing, and services. A significant portion of its income is derived from selling integrated circuits and related technology to original equipment manufacturers (OEMs) and other technology companies. Marvell has established key partnerships with leading tech firms to integrate its products into a wide range of applications, from cloud data centers to automotive systems. The company also earns revenue through licensing its technology and intellectual property, as well as providing support and maintenance services to its customers. Strategic acquisitions and collaborations further bolster its market position and revenue generation capabilities.

Marvell Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Breaks down revenue by different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments. This insight helps assess diversification and dependency on specific segments.

Chart InsightsMarvell's data center segment is experiencing remarkable growth, driven by custom AI silicon programs, with revenue surging 78% year-over-year. This aligns with the earnings call highlighting record-breaking revenue and robust AI performance, significantly exceeding targets. However, the consumer and industrial segments face challenges, with consumer revenue expected to decline further. Despite these hurdles, Marvell's strategic focus on AI and custom silicon is paying off, positioning the company for continued strong growth in fiscal 2026.

Data provided by:

Main Street Data

Marvell Earnings Call Summary

Earnings Call Date:May 30, 2025

(Q1-2026)

% Change Since: 11.63%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance with record revenue and significant growth driven by the data center and AI segments. Despite challenges in the consumer and automotive sectors, the company's strategic initiatives, such as the sale of the automotive Ethernet business and expansion in AI technology, position it well for continued growth.

Q1-2026 Updates

Positive Updates

Record Revenue and Growth

Marvell delivered record revenue of $1.895 billion, a 4% sequential increase and 63% year-over-year growth. Second-quarter revenue is expected to be $2 billion, representing 57% year-over-year growth.

Strong Data Center Performance

Data center revenue grew by 5% sequentially and 76% year-over-year to $1.44 billion, driven by AI demand and custom AI silicon programs.

Significant Stock Repurchases

Marvell repurchased $340 million in stock, a substantial increase from $200 million in the prior quarter.

Sale of Automotive Ethernet Business

Marvell announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, which will enhance capital allocation flexibility.

Expansion in Custom Silicon and AI

Continued strong interest and progress in custom AI silicon programs with major hyperscale customers, including a partnership with NVIDIA for NVLink fusion technology.

Negative Updates

Consumer Revenue Decline

Consumer revenue was $63 million, a 29% sequential decline, though a 50% sequential growth is expected in the second quarter.

Decline in Automotive and Industrial Revenue

First-quarter revenue in the automotive and industrial end market was $76 million, a 12% sequential decline, with flat revenue expected in the second quarter.

Company Guidance

During Marvell Technology's first quarter fiscal year 2026 earnings call, the company announced a record revenue of $1.895 billion, which reflected a 4% sequential increase and a strong 63% year-over-year growth. Non-GAAP earnings per share exceeded the midpoint of guidance, driven by robust AI demand. Marvell significantly increased stock repurchases, buying back $340 million in the first quarter compared to $200 million in the prior quarter. The company is forecasting second-quarter revenue of $2 billion at the midpoint of guidance, representing 57% year-over-year growth. Data center revenue in the first quarter was $1.44 billion, showing a 5% sequential growth and 76% year-over-year increase. Looking forward, Marvell expects data center revenue to continue growing in the mid-single-digit range sequentially while maintaining strong year-over-year growth. The company also highlighted the rapid scaling of custom AI silicon programs and the significant interest from customers in their advanced technology solutions. Additionally, Marvell announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, which is expected to close in calendar 2025, providing additional flexibility in their capital allocation strategy.

Marvell Financial Statement Overview

Summary

Marvell demonstrates strong revenue growth and stable cash flow generation, which are positive indicators. However, sustained losses and pressure on operating margins highlight profitability challenges. The balance sheet remains robust, but leverage risks should be monitored.

Income Statement

Positive

Marvell's revenue has shown a positive growth trend with a notable increase in the TTM period. However, the company is currently experiencing negative net profitability, as evidenced by the negative Net Income and a negative Net Profit Margin. The Gross Profit Margin remains healthy, but the EBIT and EBITDA margins are under pressure, indicating challenges in controlling operational costs.

Balance Sheet

Positive

The balance sheet reveals a solid equity position, with a significant portion of the company's assets funded by stockholders' equity. However, the Debt-to-Equity ratio is moderate, suggesting some leverage that could pose risks if not managed carefully. The company maintains a stable Equity Ratio, contributing to financial stability.

Cash Flow

Positive

Marvell demonstrates strong cash flow generation, with positive Free Cash Flow and Operating Cash Flow. The Free Cash Flow to Net Income ratio is strong due to negative net income, reflecting efficient cash management despite profitability challenges. The Free Cash Flow growth rate is notable, indicating effective capital expenditure control.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
6.50B	5.77B	5.51B	5.92B	4.46B	2.97B
	Gross Profit
2.81B	2.38B	2.29B	2.99B	2.06B	1.49B
	EBIT
40.10M	-366.40M	-436.60M	377.30M	-311.81M	-46.15M
	EBITDA
1.06B	651.60M	850.70M	1.65B	901.16M	388.62M
	Net Income Common Stockholders
-491.50M	-885.00M	-933.40M	-163.50M	-421.03M	-277.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	948.30M	950.80M	911.00M	613.50M	748.47M
	Total Assets
20.02B	20.20B	21.23B	22.52B	22.11B	10.76B
	Total Debt
4.51B	4.34B	4.40B	4.49B	4.55B	1.19B
	Net Debt
3.63B	3.39B	3.45B	3.58B	3.93B	444.34M
	Total Liabilities
6.71B	6.78B	6.40B	6.88B	6.41B	2.33B
	Stockholders Equity
13.31B	13.43B	14.83B	15.64B	15.70B	8.44B
Cash Flow		Free Cash Flow
1.37B	1.40B	1.02B	1.07B	632.25M	697.78M
	Operating Cash Flow
1.69B	1.68B	1.37B	1.29B	819.37M	817.29M
	Investing Cash Flow
-292.90M	-300.70M	-350.50M	-328.40M	-3.75B	-119.64M
	Financing Cash Flow
-1.36B	-1.38B	-980.20M	-662.90M	2.79B	-596.78M

Marvell Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price67.19

Price Trends

50DMA

59.97

Positive

100DMA

75.28

Negative

200DMA

82.94

Negative

Market Momentum

MACD

1.91

Negative

RSI

55.98

Neutral

STOCH

74.18

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVL, the sentiment is Neutral. The current price of 67.19 is above the 20-day moving average (MA) of 64.47, above the 50-day MA of 59.97, and below the 200-day MA of 82.94, indicating a neutral trend. The MACD of 1.91 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MRVL.

Marvell Risk Analysis

Marvell disclosed 29 risk factors in its most recent earnings report. Marvell reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Marvell Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADI	77 Outperform	$115.19B	61.26	5.21%	1.76%	-6.17%	-14.16%
NXPI	77 Outperform	$54.92B	22.74	26.02%	1.92%	-7.21%	-15.29%
MRVL	73 Outperform	$60.04B	―	-3.54%	0.34%	21.60%	50.00%
STM	71 Outperform	$26.78B	24.87	6.33%	1.20%	-25.35%	-70.00%
ON	65 Neutral	$21.32B	35.39	7.85%	―	-18.28%	-70.98%
MCHP	64 Neutral	$36.64B	84.25	>-0.01%	2.77%	-42.35%	-100.12%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%

* Technology Sector Average

Performance Comparison

MRVL

Marvell

67.19

-4.39

-6.13%

ADI

Analog Devices

225.03

-3.43

-1.50%

MCHP

Microchip

65.73

-22.82

-25.77%

NXPI

NXP Semiconductors

210.90

-56.63

-21.17%

ON Semiconductor

51.02

-19.71

-27.87%

STM

STMicroelectronics

29.18

-13.46

-31.57%

Marvell Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy

Marvell and AWS Expand Strategic Partnership for Cloud

Positive

Dec 2, 2024

Marvell Technology and Amazon Web Services (AWS) have expanded their strategic partnership in a multi-generational agreement to enhance cloud infrastructure with advanced data center semiconductors. This collaboration aims to boost efficiency and innovation by leveraging Marvell’s semiconductor solutions, including custom AI products and networking hardware, integrated with AWS’s scalable cloud capabilities. This partnership is expected to accelerate Marvell’s silicon design process and empower AWS to deliver robust AI and cloud services.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.