We're Adding Marvell Shares as Management Comes Out Swinging
Here's why we should see an upbeat presentation today at this investor conference.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
MRVL | Buy | 55 | 90.55 | 2,385 | 3.9 |
After you receive this Alert, we will buy 55 shares of Marvell Technology (MRVL) at or near $90.55. Following the trade, MRVL shares will account for roughly 3.9% of the Pro Portfolio.
Over the last few days, shares of Marvell have been under pressure despite the robust guidance the management team issued less than a week ago. As we discussed with you on Monday, the pressure stemmed from reports that Marvell’s custom AI silicon positioning with Amazon (AMZN) Web Services (AWS) and Microsoft (MSFT) suffered some setbacks. We discussed those reports yesterday, walking through Marvell’s recent guidance, the announced acquisition of Celestial AI, and related earnings call comments.
Marvell management went a step further, with CEO Matt Murphy giving an interview last night that pushed back hard on those reports. During the interview, Murphy reiterated Marvell’s bookings in hand-based guidance, including the custom AI silicon business growing at least 20% next year and doubling the following year. We continue to think that doubling in calendar 2027 is due in part to Meta’s (META) expected custom AI chip solution hitting the market.
Murphy also explained how the acquisition of Celestial AI expands Marvell’s relationship with AWS beyond networking and custom AI silicon chips to include silicon photonics. The kicker for us, however, was the comment that Marvell’s quarter-to-date bookings are already ahead of the record level achieved in the October quarter.
As we think about the pullback in MRVL shares and Murphy’s comments, let’s also remember that coming into the current quarter, Marvell had $5.7 billion remaining under its current share repurchase authorization. That combination and our $140 price target are leading us to put our money where our mouth is when it comes to our One rating on MRVL.
Based on Marvell’s earnings and guidance from last week, and Murphy’s interview last night, we should see a very upbeat presentation when the company presents at the Barclays 23rd Annual Global Technology Conference at 2 PM ET.
More Pro Portfolio:
- We're Locking in a Big Slice of Gains in This Holding
- Seasonally Picky Shoppers, Hypersonic Upgrades, More Investing News
- Weekly Roundup: Marvell and These 5 Holdings Propel Portfolio Higher
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long MRVL, AMZN, MSFT and META.
