Marvell (MRVL) AI Stock Analysis

• Market Cap: $68.87B
• Dividend Yield: 0.28%
• Average Volume (3M): 15.88M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 2.46
• Revenue Growth: 44.95%
• EPS Growth: N/A
• Country: US
• Employees: 7,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.76
• Shares Outstanding: 848,100,000
• 10 Day Avg. Volume: 12,856,583
• 30 Day Avg. Volume: 15,882,304
• PEG Ratio: 19.87
• Price to Book (P/B): 7.27
• Price to Sales (P/S): 16.94
• P/FCF Ratio: 70.29
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 10.69
• Enterprise Value/Gross Profit: 21.08
• Enterprise Value/Ebitda: 19.05
• 1Y Price Target: $119.56
• Price Target Upside: 48.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 31
• EPS Forecast (FY): 2.84
• Revenue Forecast (FY): $8.18B

• Rating: 76 Outperform
• Price Target: $91.00 ▲(13.21% Upside)

Marvell's overall stock score is driven by strong earnings call results and technical analysis, indicating robust growth and market momentum. Financial performance shows solid revenue growth but highlights areas for improvement in profitability and cash flow conversion. The high P/E ratio suggests potential overvaluation, but the strategic focus on AI and data center growth supports a positive outlook.

Positive Factors

Revenue Growth

Marvell's strong revenue growth indicates robust demand for its products, particularly in data centers, supporting long-term business expansion.

Strategic Acquisition

The acquisition of Celestial AI enhances Marvell's competitive edge in data centers, positioning it well for future growth in AI-driven infrastructure.

Data Center Segment Growth

Continued growth in the data center segment, fueled by AI demand, underscores Marvell's strong market position and potential for sustained revenue increases.

Negative Factors

Profitability Challenges

A negative return on equity suggests difficulties in generating shareholder returns, potentially impacting long-term financial health and investor confidence.

Low EBIT Margin

A low EBIT margin indicates room for operational efficiency improvements, which are crucial for enhancing profitability and sustaining competitive advantage.

Seasonal Declines in Consumer Business

Seasonal declines in the consumer segment could affect overall revenue stability, necessitating diversification or strategic adjustments to mitigate impacts.

Marvell Business Overview & Revenue Model

Company Description

Marvell Technology, Inc., together with its subsidiaries, designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; ASIC; and printer System-on-a-Chip products and application processors. The company also provides a range of storage products comprising storage controllers for hard disk drives (HDD) and solid-state drives that support various host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics; and fiber channel products, including host bus adapters, and controllers for server and storage system connectivity. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.

How the Company Makes Money

Marvell generates revenue primarily through the sale of semiconductor products across its various business segments, including data center, networking, and storage solutions. The company earns money from the sale of its integrated circuits and chipsets, which are used in data centers, enterprise networks, and consumer electronics. Key revenue streams include licensing agreements, where Marvell licenses its technology to other companies for use in their products, and direct sales to original equipment manufacturers (OEMs) and other customers. Additionally, Marvell benefits from long-term partnerships and collaborations with major technology companies, which help to secure steady demand for its products. The growing demand for cloud computing, 5G technology, and advanced automotive applications also contributes significantly to Marvell's earnings, positioning the company to capitalize on the increasing need for high-performance semiconductor solutions.

Marvell Financial Statement Overview

Summary

Marvell demonstrates strong revenue growth and profitability improvements, with a gross profit margin over 50% and a net profit margin over 31%. However, the EBIT margin is relatively low at 10.3%, and the negative return on equity indicates profitability challenges. Cash flow generation is improving, but there is room for enhancing free cash flow conversion.

Income Statement

Marvell's income statement shows a strong gross profit margin of over 50% in the TTM, indicating efficient cost management. The net profit margin has improved significantly to over 31% in the TTM, reflecting enhanced profitability. Revenue growth is positive at 7.7% in the TTM, suggesting a healthy upward trajectory. However, EBIT margin remains relatively low at 10.3%, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.32, suggesting a balanced approach to leveraging. However, the return on equity is negative, indicating challenges in generating returns for shareholders. The equity ratio is stable, reflecting a solid capital structure, but the negative ROE highlights profitability issues that need addressing.

Cash Flow

Marvell's cash flow statement shows a positive free cash flow growth rate of 3.1% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio is slightly below optimal, indicating potential constraints in cash available for reinvestment or debt reduction.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.77B	5.51B	5.92B	4.46B	2.97B
Gross Profit	2.38B	2.29B	2.99B	2.06B	1.49B
EBITDA	651.60M	850.70M	1.65B	901.10M	388.60M
Net Income	-885.00M	-933.40M	-163.50M	-421.00M	-277.30M
Balance Sheet
Total Assets	20.20B	21.23B	22.52B	22.11B	10.76B
Cash, Cash Equivalents and Short-Term Investments	948.30M	950.80M	911.00M	613.50M	748.47M
Total Debt	4.34B	4.40B	4.74B	4.73B	1.33B
Total Liabilities	6.78B	6.40B	6.88B	6.41B	2.33B
Stockholders Equity	13.43B	14.83B	15.64B	15.70B	8.44B
Cash Flow
Free Cash Flow	1.39B	1.02B	1.07B	632.40M	697.80M
Operating Cash Flow	1.68B	1.37B	1.29B	819.30M	817.30M
Investing Cash Flow	-300.70M	-350.50M	-328.40M	-3.75B	-119.60M
Financing Cash Flow	-1.38B	-980.20M	-662.90M	2.79B	-596.80M

Marvell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVL, the sentiment is Negative. The current price of 80.38 is below the 20-day moving average (MA) of 84.94, below the 50-day MA of 86.93, and above the 200-day MA of 75.04, indicating a neutral trend. The MACD of -1.44 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 9.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRVL.

Marvell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRVL	76 Outperform	$68.87B	28.44	18.04%	0.28%	44.95%	―
AVGO	73 Outperform	$1.61T	71.33	31.05%	0.69%	23.87%	285.84%
ON	73 Outperform	$24.38B	78.66	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$60.61B	29.57	21.19%	1.79%	-6.81%	-23.16%
MCHP	62 Neutral	$40.36B	-164.86	-2.85%	2.79%	-23.36%	-131.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60 Neutral	$25.00B	49.02	3.00%	1.28%	-17.33%	-76.71%