Nvidia’s $2 Billion Investment in This Holding Should Be a Wall Street Wake Up Call
More details to come, but this underscores our multi-pronged thesis on the holding.
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The Portfolio’s position in Marvell (MRVL) is catching an updraft on Tuesday courtesy of Nvidia (NVDA) , which announced a $2 billion investment in the company.
In addition, Marvell will join the Nvidia AI ecosystem and will team with Nvidia on silicon photonics technology. The comment from Marvell CEO about the partnership reflected the “growing importance of high-speed connectivity” and meshes with our view that, as AI adoption rises and usage grows, network capacity will become constrained, ushering in incremental network capital spending.
We view Nvidia’s capital commitment as a big validation of Marvell’s positioning and our multi-pronged rationale for owning the shares.
We expect to learn more about the partnership and its benefits to both companies in the coming months. In the near-term, however, we expect this will serve as a fresh wake-up call to Wall Street and investors about Marvell and its shares. That explains the pop we are seeing in MRVL shares on Tuesday morning, and yes, we are enjoying that.
Whether the follow through results in MRVL shares once again becoming an outsized position for the Portfolio is to be determined, but if it does and some prudent Portfolio management is called for, that wouldn’t be a horrible thing.
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At the time of publication, TheStreet Pro Portfolio was long MRVL and NVDA.
