Nvidia falls short of the top 10 semiconductor stocks per SA quant metrics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2024
0mins
Should l Buy MRVL?
Source: SeekingAlpha
AI Boom and Semiconductor Focus: The AI boom in 2023 has been significantly influenced by the semiconductor industry, particularly by Nvidia, a member of the Magnificent 7 group.
Nvidia's Performance: Despite its pivotal role in the AI sector, Nvidia has reportedly experienced a decline according to Seeking Alpha’s quant metrics.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 78.230
Low
85.00
Averages
120.12
High
156.00
Current: 78.230
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc., together with its subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. The Company is engaged in the design, development, and sale of integrated circuits. Its product solutions serve various end markets: data center, enterprise networking, carrier infrastructure, consumer, and industrial. Its product offerings include CXL, Data Processing Units, Security Solutions, Coherent DSPs, Coherent-lite DSPs, Data Center Switches, DCI Optical Modules, Enterprise Switches, Ethernet Controllers, Ethernet PHYs, PCIe Retimers, Linear Drivers, PAM DSPs, Transimpedance Amplifiers, Fiber Channel, HDD, Storage Accelerators, and SSD Controllers. The Company develops semiconductor solutions tailored to individual customer specifications that deliver system-level differentiation for artificial intelligence, data center, compute, networking, carrier, storage, aerospace, and defense applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Marvell Technology Stock Pullback
- Market Volatility Expected: The ongoing rotation among investors suggests that market volatility will persist, and while Marvell Technology's recent pullback may seem excessive, its growth potential in the AI sector remains promising.
- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
See More
Investment Opportunities Amid Market Volatility
- Market Volatility Analysis: All five stocks discussed have experienced varying degrees of pullback, and this volatility is expected to continue in the foreseeable future as investors rotate their assets.
- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
- Video Content Recommendation: The video will delve deeper into the performance of these stocks, encouraging viewers to subscribe to the channel and check out the special offer in the link below for more investment insights.
See More
US Stocks Edge Up, Led by Chipmakers' Gains
- Chipmaker Rebound: Applied Materials (AMAT) reported Q1 adjusted EPS of $2.38, surpassing the consensus of $2.21, leading to a 10% stock price increase that helped lift the broader market, indicating strong recovery potential in tech stocks.
- Inflation Data Impact: The US January CPI rose 2.4% year-over-year, below the expected 2.5%, which may prompt the Fed to continue cutting rates, with the 10-year T-note yield falling to 4.05%, providing support for the market.
- Earnings Performance: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, demonstrating corporate resilience and restoring market confidence.
- Market Sentiment Fluctuations: Despite the overall market rise, concerns over AI persist, putting pressure on certain stocks, particularly in tech and logistics, reflecting investor caution regarding future economic prospects.
See More
Direxion Launches Four New Leveraged ETFs
- New Product Launch: Direxion is launching four new single-stock leveraged ETFs on Wednesday, aimed at providing traders with amplified exposure to the semiconductor, e-commerce, and digital finance sectors, with an expected performance of twice the underlying stock's daily returns.
- Short-Term Trading Tools: These ETFs are designed for short-term tactical trading rather than long-term investing, reflecting Direxion's keen insight into market volatility and helping investors seize rapidly changing market opportunities.
- Digital Economy Leaders: The selected companies, including ASML, Marvell, Alibaba, and SoFi, are at the core of the digital economy, allowing investors to leverage these ETFs for precise trading of short-term bullish views related to semiconductor technology, e-commerce, and fintech.
- Product Line Expansion: This launch increases Direxion's total number of single-stock leveraged ETFs to 55, spanning multiple sectors such as technology, energy, aerospace, automotive, online commerce, and cryptocurrency, showcasing its ongoing innovation in packaging high-conviction trades.
See More
Marvell Completes Acquisition of XConn Technologies
- Acquisition Completed: Marvell Technology, Inc. has announced the completion of its acquisition of XConn Technologies, which will enhance its capabilities in PCIe and CXL switching products, thereby strengthening its competitive position in AI and cloud data center architectures.
- Expected Financial Impact: XConn is anticipated to begin contributing revenue in Q3 of fiscal 2027, with an expected annualized run rate of $50 million by Q4 of fiscal 2027, and a projected contribution of $100 million in fiscal 2028, indicating significant long-term revenue potential from the acquisition.
- Increased Operating Costs: The acquisition is expected to add approximately $25 million in annual non-GAAP operating expenses to Marvell's current run rate, which may exert short-term pressure on profits but is expected to enhance overall business capabilities in the long run.
- Cash Flow Impact: The completion of the acquisition reduced Marvell's cash balance by $325 million, which is expected to decrease other income by approximately $12 million annually in future fiscal periods, potentially affecting the company's financial flexibility.
See More
Marvell Completes Acquisition of XConn Technologies
- Acquisition Completed: Marvell Technology, Inc. has announced the completion of its acquisition of XConn Technologies, which will enhance its capabilities in PCIe and CXL switching products, thereby strengthening its competitive position in next-generation AI and cloud data center architectures.
- Expected Financial Impact: Marvell anticipates that XConn will begin contributing revenue in the third quarter of fiscal 2027, with an expected annualized run rate of $50 million by the fourth quarter, and a projected contribution of $100 million in fiscal 2028, indicating significant long-term revenue potential from the acquisition.
- Increased Operating Costs: The acquisition is expected to add approximately $25 million in annual non-GAAP operating expenses to Marvell's current run rate, which may impact short-term profits but is expected to drive revenue growth through an enhanced product portfolio in the long run.
- Cash Flow Impact: The completion of the acquisition has reduced Marvell's cash balance by $325 million, leading to an anticipated decrease of approximately $12 million in other income in future fiscal periods, which may exert some pressure on the company's financial condition.
See More
Analysis of Marvell Technology Stock Pullback
- Market Volatility Expected: The ongoing rotation among investors suggests that market volatility will persist, and while Marvell Technology's recent pullback may seem excessive, its growth potential in the AI sector remains promising.
- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
See More
Investment Opportunities Amid Market Volatility
- Market Volatility Analysis: All five stocks discussed have experienced varying degrees of pullback, and this volatility is expected to continue in the foreseeable future as investors rotate their assets.
- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
- Video Content Recommendation: The video will delve deeper into the performance of these stocks, encouraging viewers to subscribe to the channel and check out the special offer in the link below for more investment insights.
See More
US Stocks Edge Up, Led by Chipmakers' Gains
- Chipmaker Rebound: Applied Materials (AMAT) reported Q1 adjusted EPS of $2.38, surpassing the consensus of $2.21, leading to a 10% stock price increase that helped lift the broader market, indicating strong recovery potential in tech stocks.
- Inflation Data Impact: The US January CPI rose 2.4% year-over-year, below the expected 2.5%, which may prompt the Fed to continue cutting rates, with the 10-year T-note yield falling to 4.05%, providing support for the market.
- Earnings Performance: Over two-thirds of S&P 500 companies have reported earnings, with 76% exceeding expectations, and Q4 earnings growth is projected at 8.4%, demonstrating corporate resilience and restoring market confidence.
- Market Sentiment Fluctuations: Despite the overall market rise, concerns over AI persist, putting pressure on certain stocks, particularly in tech and logistics, reflecting investor caution regarding future economic prospects.
See More
Direxion Launches Four New Leveraged ETFs
- New Product Launch: Direxion is launching four new single-stock leveraged ETFs on Wednesday, aimed at providing traders with amplified exposure to the semiconductor, e-commerce, and digital finance sectors, with an expected performance of twice the underlying stock's daily returns.
- Short-Term Trading Tools: These ETFs are designed for short-term tactical trading rather than long-term investing, reflecting Direxion's keen insight into market volatility and helping investors seize rapidly changing market opportunities.
- Digital Economy Leaders: The selected companies, including ASML, Marvell, Alibaba, and SoFi, are at the core of the digital economy, allowing investors to leverage these ETFs for precise trading of short-term bullish views related to semiconductor technology, e-commerce, and fintech.
- Product Line Expansion: This launch increases Direxion's total number of single-stock leveraged ETFs to 55, spanning multiple sectors such as technology, energy, aerospace, automotive, online commerce, and cryptocurrency, showcasing its ongoing innovation in packaging high-conviction trades.
See More
Marvell Completes Acquisition of XConn Technologies
- Acquisition Completed: Marvell Technology, Inc. has announced the completion of its acquisition of XConn Technologies, which will enhance its capabilities in PCIe and CXL switching products, thereby strengthening its competitive position in AI and cloud data center architectures.
- Expected Financial Impact: XConn is anticipated to begin contributing revenue in Q3 of fiscal 2027, with an expected annualized run rate of $50 million by Q4 of fiscal 2027, and a projected contribution of $100 million in fiscal 2028, indicating significant long-term revenue potential from the acquisition.
- Increased Operating Costs: The acquisition is expected to add approximately $25 million in annual non-GAAP operating expenses to Marvell's current run rate, which may exert short-term pressure on profits but is expected to enhance overall business capabilities in the long run.
- Cash Flow Impact: The completion of the acquisition reduced Marvell's cash balance by $325 million, which is expected to decrease other income by approximately $12 million annually in future fiscal periods, potentially affecting the company's financial flexibility.
See More
Marvell Completes Acquisition of XConn Technologies
- Acquisition Completed: Marvell Technology, Inc. has announced the completion of its acquisition of XConn Technologies, which will enhance its capabilities in PCIe and CXL switching products, thereby strengthening its competitive position in next-generation AI and cloud data center architectures.
- Expected Financial Impact: Marvell anticipates that XConn will begin contributing revenue in the third quarter of fiscal 2027, with an expected annualized run rate of $50 million by the fourth quarter, and a projected contribution of $100 million in fiscal 2028, indicating significant long-term revenue potential from the acquisition.
- Increased Operating Costs: The acquisition is expected to add approximately $25 million in annual non-GAAP operating expenses to Marvell's current run rate, which may impact short-term profits but is expected to drive revenue growth through an enhanced product portfolio in the long run.
- Cash Flow Impact: The completion of the acquisition has reduced Marvell's cash balance by $325 million, leading to an anticipated decrease of approximately $12 million in other income in future fiscal periods, which may exert some pressure on the company's financial condition.
See More
