Marvell (MRVL) AI Stock Analysis

• Market Cap: $80.08B
• Dividend Yield: 0.26%
• Average Volume (3M): 15.83M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 2.51
• 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: 862,100,000
• 10 Day Avg. Volume: 15,665,313
• 30 Day Avg. Volume: 15,832,093
• 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: 1.03
• Enterprise Value/Revenue: 10.61
• Enterprise Value/Gross Profit: 20.94
• Enterprise Value/Ebitda: 26.82
• 1Y Price Target: $120.04
• Price Target Upside: 29.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $103.00 ▲(10.88% Upside)

Marvell's overall stock score reflects strong financial performance and positive earnings call sentiment, highlighting record revenue growth and strategic acquisitions. Technical analysis supports bullish momentum, although valuation concerns due to a negative P/E ratio and low dividend yield weigh on the score. The company's focus on AI and data center growth positions it well for future success, but profitability improvements are needed to enhance valuation metrics.

Positive Factors

Revenue Growth

Marvell's robust revenue growth, particularly in the data center and AI sectors, indicates strong market demand and effective strategic positioning, supporting long-term business expansion.

Operating Margin Improvement

Significant improvement in operating margins reflects enhanced operational efficiency and cost management, contributing to sustained profitability and competitive advantage.

Strategic Divestiture

The divestiture provides financial flexibility to invest in core growth areas and enhance shareholder value through stock repurchases and technology advancements.

Negative Factors

Negative ROE

Negative return on equity suggests inefficiencies in generating shareholder returns, which could impact investor confidence and long-term financial health.

Custom Business Volatility

Volatility in the custom business segment can lead to unpredictable revenue streams, affecting financial stability and strategic planning.

Automotive Revenue Decline

The decline in automotive revenue post-divestiture may reduce market diversification and expose the company to sector-specific risks.

Marvell Business Overview & Revenue Model

Company Description

Marvell Technology, Inc. (MRVL) is a leading semiconductor company that specializes in storage, networking, and connectivity solutions. The company designs and develops a wide range of products that enable data infrastructure for cloud, enterprise, automotive, and consumer applications. Marvell's core offerings include data center solutions, such as Ethernet switches and storage controllers, as well as solutions for 5G infrastructure, Wi-Fi, and other connectivity technologies. With a strong focus on innovation and performance, Marvell serves a diverse customer base that includes major technology firms and telecom operators.

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's financial performance is strong with a high gross profit margin and significant net profit margin improvement. Revenue growth is positive, but operational efficiency needs improvement as indicated by the low EBIT margin. The balance sheet is stable with moderate leverage, though negative ROE suggests profitability challenges. Cash flow generation is improving, but free cash flow conversion could be enhanced.

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: Positive
• Last Price: 92.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVL, the sentiment is Positive. The current price of 92.89 is above the 20-day moving average (MA) of 86.83, above the 50-day MA of 86.47, and above the 200-day MA of 73.97, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 95.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRVL.

Marvell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVGO	76 Outperform	$1.82T	98.64	27.08%	0.62%	28.01%	235.66%
MRVL	71 Outperform	$80.08B	32.54	-0.75%	0.26%	44.95%	―
ON	68 Neutral	$20.71B	67.18	3.87%	―	-16.13%	-81.06%
NXPI	65 Neutral	$50.21B	24.50	21.19%	2.20%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$20.95B	42.35	3.00%	1.44%	-17.33%	-76.71%
MCHP	54 Neutral	$28.88B	―	-2.85%	3.21%	-23.36%	-131.15%

Marvell Corporate Events

Marvell Technology’s Earnings Call Highlights Robust Growth

Marvell Technology Group’s recent earnings call painted a picture of robust performance, marked by significant revenue growth and strategic achievements. The sentiment was overwhelmingly positive, driven by impressive gains in the data center and AI sectors, alongside successful strategic initiatives such as the automotive Ethernet divestiture. Despite facing challenges in certain sectors, the company remains on a positive trajectory, backed by strong market opportunities and strategic planning.

Marvell Technology Reports Record Revenue Growth

Marvell Technology, Inc. is a prominent player in the semiconductor industry, specializing in data infrastructure solutions that power data centers, enterprise networks, and carrier infrastructures. The company is known for its innovative semiconductor products that cater to the evolving needs of its diverse clientele.