Marvell Technology (MRVL) stock rose 4.2% on Wednesday morning after the company announced a new plan to return capital to its shareholders. The semiconductor solutions provider has authorized a new $5 billion stock repurchase program and immediately initiated a $1 billion accelerated share repurchase (ASR) agreement.
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This new authorization bolsters MRVL’s capital return commitment, adding to the nearly $2 billion remaining under its previous program as of August 2, 2025. Marvell has already repurchased $300 million in common stock this quarter.
Marvell’s Buyback Plan Signals Confidence
The immediate $1 billion ASR program signals strong conviction in the company’s future. Marvell Chairman and CEO Matt Murphy stated, “This ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth.”
Also, Murphy noted that Marvell’s robust balance sheet provides the flexibility necessary to invest in long-term growth, particularly as it targets the “large and expanding opportunity in accelerated infrastructure for AI.”
The move is clearly designed to boost shareholder value while the company continues to focus on the high-growth AI market.
Importantly, buybacks are often seen as a sign of management’s confidence in future cash flows and profitability.
Is Marvell Technology a Buy, Sell, or Hold?
Turning to Wall Street, MRVL stock has a Strong Buy consensus rating based on 23 Buys and seven Holds assigned in the last three months. At $88.24, the average Marvell price target implies 14.75% upside potential.
