Latest news with #MarvellTechnologyInc
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Marvell Technology's Unusual Put Option Activity Shows Investors Like MRVL Stock
Today, large, unusual activity in Marvell Technology Inc (MRVL) put options traded at an out-of-the-money (OTM) strike price. This implies that investors are bullish on MRVL stock. Moreover, its strong free cash flow (FCF) implies that MRVL stock could be worth 32% more at $75 per share. MRVL is at $57.00 in morning trading on Wednesday, April 30. That is well off its 6-month high of $126.06 on Jan. 23, but up from a low of $49.43 on April 4. Marvel stock could be worth considerably more, as will be seen in this article, based on its strong free cash flow (FCF). This might become apparent when the company releases its FY Q1 2026 results on May 29. Barchart Unusual Options Report Moreover, as seen by today's options activity, some institutional investors are betting that its lows have already been reached. This can be seen in the Barchart Unusual Stock Options Activity Report today. It shows that a large tranche of out-of-the-money puts traded at the $48.00 strike price for expiry in just over 2 weeks (May 16). The strike price is well below today's trading price of $57.00 (i.e., out-of-the-money or OTM). The table above shows that 4,500 put contracts traded with a midpoint premium of 70 cents. That implies that an investor who sold these puts short (i.e., entered an order to 'Sell to Open') would have made an immediate yield of 1.46% (i.e., $0.70/$48.00 = 0.01458). In other words, the investor is getting paid for the potential assignment risk of having to buy shares at $48.00, which is 15.7% below today's price. There is very little risk of this happening as evidenced by the low 14.1% delta ratio (based on historical volatility patterns). Nevertheless, the investors are still paid this 1.46% for this short-put play. Moreover, the breakeven price, even if MRVL falls to $48.00 in the next two weeks, is low at just $47.30 (i.e., $48.00-$0.70 income received). That is 17% below today's trading price. Strong Free Cash Flow (FCF) and Higher Target Prices On top of this, Marvell stock looks very cheap even at today's price. This is based on its strong free cash flow (FCF) results. For example, last quarter ending Feb. 1, 2025 (from its March 5 earnings release), Marvell Technology, which designs and produces system-on-a-chip semiconductors increasingly used in data center servers for AI applications, generated $514 million in operating cash flow. After spending $70.7 million in capex and technology licenses, its 'free' cash flow (FCF) (i.e., free to be spent on dividends, buybacks, etc.) was $443.3 million. That represented 24.4 % of its revenue, indicating a very high FCF margin. Moreover, for the fiscal year ending Feb. 1, its $1.34 billion FCF represented a FCF margin of 24.1% of its $5.767 billion in revenue for the year. As a result, investors can be reasonably confident it will produce at least a 24.1% FCF margin over the next year. For example, analysts now project revenue of $8.21 billion this year ending Jan. 31, 2026. That represents an increase of 42%. Using a 24.1% FCF margin estimate, the company's projected free cash flow is almost $2 billion: 0.241 x $8.21b = $1.98 billion est. FCF As a result, using a 3.0% FCF yield metric (typical for this stock and other tech stocks and the same as a 33x FCF multiple), the value of MRVL stock is: $1.98b / 0.030 = $66.0 billion That is $16 billion higher (+32%) than Marvell Technology's present market cap of $50 billion. In other words, the MRVL target price is 32% higher at $75.24 per share. Analysts Agree MRVL Stock is Cheap Analysts also agree MRVL stock looks undervalued here. For example, 39 analysts surveyed by Yahoo! Finance have an average price target of $103.36 per share. Similarly, Barchart's mean is $111.79 per share. Moreover, which tracks analysts who have written recently on MRVL stock, shows an average price target of $73.82 from 30 analysts. That is close to my FCF-based price target of $75.24. The bottom line is that MRVL stock looks deeply undervalued here. No wonder, then, some institutional investors are shorting these deep out-of-the-money put options. The 1.46% short-put yield, 17% lower breakeven price, and high price targets make this a worthwhile bet for these bullish investors.
Yahoo
27-04-2025
- Business
- Yahoo
Is Marvell Technology Inc. (NASDAQ:MRVL) the Most Promising Stock According to Analysts?
We recently published a list of the 11 Most Promising Stocks According to Analysts. In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other promising stocks. On April 23, Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, joined 'Squawk Box' on CNBC to express that investors should have a normal level of risk in their portfolios right now. Parker explained that while he is fully in support of remaining invested in the market, he does recommend clients to stay focused on sectors that may be more resilient in a downturn to help protect against losses while staying long. His baseline guidance is for clients to maintain a normal level of risk in their portfolios. Those holding too much cash should get invested, and those overexposed to US markets and the dollar should consider adding non-US exposure. He advised that this is a period where investors must be comfortable with discomfort, as policy uncertainty broadens the range of possible outcomes. Parker acknowledged that while downside risks are top of mind for many investors, there is also upside potential, especially if there are positive policy surprises, such as clarity on tariffs, which could drive markets back to their highs sooner than expected. His outlook for the S&P 500 index is a wide range, with the high end being flat for the year and a possible range of 5,700-6,200. This reflects heightened policy uncertainty and difficulty in pinpointing a single target. Parker pointed out that even if it takes two years for markets to return to all-time highs, an 8% annual return would still be compelling for equities. Reflecting on the start of the year, he noted that market multiples were considered rich following 2 consecutive years of 20%+ gains. There was optimism around deregulation and changes to corporate taxes, but few expected the S&P 500 to remain flat for 2 years from a level of 6,200. Parker further explained that even without pro-business policy changes, the market may have faced challenges after such strong recent gains. The pullback in high-performing segments of the US market has brought valuations closer to what he considers normal levels, which also sets the stage for potential upside. Our Methodology We sifted through the Finviz stock screener to compile a list of the top stocks that had high analysts' upside potential (at least 35%). The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An assembly line in a semiconductor factory, with workers at their stations. Number of Hedge Fund Holders: 105 Average Upside Potential as of April 23: 83.08% Marvell Technology Inc. (NASDAQ:MRVL) delivers semiconductor solutions for data infrastructure. It enables the core-to-edge connectivity of data centers and networks. It specializes in complex SoC architectures and offers a portfolio of Ethernet, electro-optical, storage, and processor technologies. Marvell's data center segment made a record $1.37 billion in revenue in FQ4 2025, which was an increase of 78% year-over-year. It was driven by AI demand and custom silicon programs. Full-year data center revenue also grew by 88%. Marvell Technology Inc. (NASDAQ:MRVL) exceeded its $1.5 billion AI revenue target and anticipates surpassing $2.5 billion in FY26. While investments in advanced technologies, such as 1.6T PAM DSPs and 2-nanometer silicon IP, solidify Marvell's market position, Stifel lowered the price target on the stock to $80 from $115 on April 17 while keeping a Buy rating on the shares. Stifel anticipates that the Analog, Connectivity, and Processors group to have generally in-line March quarter results due to tariff impacts, with even softer June quarter results. ClearBridge Mid Cap Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2025 investor letter: 'Marvell Technology, Inc. (NASDAQ:MRVL), a networking and storage semiconductor company with a strong presence in data centers, pulled back after a strong run alongside other AI beneficiaries following the DeepSeek announcement. However, we believe that regardless of the impact of less capital and energy intensive AI models like DeepSeek, large AI hyperscalers will continue to build new and more data centers, providing Marvell with a long-term opportunity to capitalize on its position as a preferred partner in their construction.' Overall, MRVL ranks 1st on our list of the most promising stocks according to analysts. While we acknowledge the growth potential of MRVL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-04-2025
- Business
- Yahoo
Is Marvell Technology Inc. (NASDAQ:MRVL) the Best Stock Under $100 to Buy According to Hedge Funds?
We recently published a list of the 12 Best Stocks Under $100 to Buy According to Hedge Funds. In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other stocks under $100 to buy according to hedge funds. On April 21, Chris Davis of Davis Advisors appeared on 'The Exchange' on CNBC to talk about selectivity in today's market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued. Davis acknowledged that while he cannot predict the market's short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times. Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations. We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An assembly line in a semiconductor factory, with workers at their stations. Share Price as of April 22: $49.38 Number of Hedge Fund Holders: 105 Marvell Technology Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions that span the data center core to the network edge. It develops and scales system-on-a-chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions and custom application-specific integrated circuits. Marvell's data center segment improved by 88% year-over-year to exceed its $1.5 billion AI revenue target in FY2025. In FQ4 alone, this revenue surged by 78%, with the company exceeding its $1.5 billion. Marvell Technology Inc. (NASDAQ:MRVL) now aims to make over $2.5 billion in FY2026. The company is investing in technologies like 1.6T PAM DSPs and 2-nanometer silicon IP, which are needed by next-gen data center interconnects for AI and cloud computing. Marvell is also collaborating with AWS to provide AWS with ASICs for next-gen XPUs that are crucial for cloud computing, which will further support the company's growth. However, on April 17, Stifel lowered the stock's price target to $80 from $115 while keeping a Buy rating. Stifel anticipates the Analog, Connectivity, and Processors group to have generally in-line March quarter results due to tariff impacts. It stated that June quarter outlooks appear even softer. Overall, MRVL ranks 6th on our list of the best stocks under $100 to buy according to hedge funds. While we acknowledge the growth potential of MRVL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-04-2025
- Business
- Yahoo
Is Marvell Technology Inc. (NASDAQ:MRVL) the Best NASDAQ Stock to Buy So Far in 2025?
We recently published a list of 13 Best NASDAQ Stocks to Buy So Far in 2025. In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other NASDAQ stocks to buy in 2025. On April 4, Wedbush analyst Dan Ives appeared on CNBC to discuss the potential impact of current tariffs and compared the situation to an economic armageddon. If the current tariffs remain in place, Ives thinks it would lead to a 15% to 20% demand reduction across the board. He thinks that investor anxiety is much higher considering how things were in the March 2020 COVID-19 crash earlier. The analyst thinks that investors should now focus on the likelihood of tariff adjustments from comments about negotiations, the impact on consumer-focused companies, and the potential for demand destruction. He even thinks that companies may refuse to provide guidance in the first-quarter earnings calls due to the persistent tariff uncertainty. Ives thinks that a lot of tech companies will not be able to absorb high tariff increases and rather this cost will be passed on to the consumers which will lead to significant margin erosion and even potential sales declines. He indicated that tech stocks are currently pricing in a 10% to 15% cut to numbers. He suggests that investors should now look at companies with strong long-term potential as he believes earnings may normalize in 2025 and 2026. The analyst also addressed the defensive performance of defense contractors. While acknowledging the relative stability here, Ives cautioned that even these even such sectors are not immune to tariffs. He noted the significant foreign component, specifically 40% to 50% in some instances, in hardware and other sectors. Our Methodology We sifted through the financial media reports to compile a list of the top NASDAQ stocks to buy for 2025. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An assembly line in a semiconductor factory, with workers at their stations. Number of Hedge Fund Holders: 105 Marvell Technology Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions, that range from the data center core to the network edge. It develops and scales SoC architectures, and integrates analog, mixed-signal, and digital signal processing functionality. Its portfolio includes products like ethernet solutions, single or multiple-core processors, and custom application-specific integrated circuits. On March 17, Harlan Sur from JP Morgan reaffirmed a Buy rating on the company with a $130 price target due to its strong AI/cloud segment performance. The company's collaboration with AWS further strengthened this market position. This will provide AWS with customized, high-performance chips (ASICs) for next-gen XPUs that are crucial for cloud computing. The company is actively investing in technologies like 1.6T PAM DSPs and 2-nanometer silicon IP, which are needed by next-gen data center interconnects for AI and cloud computing. The company's data center segment improved by 78% year-over-year in FQ4 2025. For the full fiscal year 2025, this revenue surged by 88%, with the company exceeding its $1.5 billion AI revenue target. Marvell Technology Inc. (NASDAQ:MRVL) now aims to make over $2.5 billion in the full fiscal year 2026. Overall, MRVL ranks 11th on our list of the best NASDAQ stocks to buy so far in 2025. While we acknowledge the growth potential of MRVL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Why Marvell Technology Inc. (MRVL) Went Down On Thursday?
We recently published a list of . In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other stocks that traders heavily sold down on Thursday. The stock market wiped away earlier gains, ending Thursday's trading in another bloodbath session, as investors sold off positions amid President Donald Trump's announcement that he had actually raised tariffs on Chinese goods to 145 percent. The Nasdaq was battered the most among all major indices, losing 4.31 percent. The S&P 500 followed with a 3.46-percent drop while the Dow Jones came in last, down 2.50 percent. Meanwhile, 10 companies were heavily sold down on Thursday, recording double-digit losses as investors parked funds to minimize risks from the ongoing uncertainties. In this article, we have listed Thursday's 10 worst performers and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume. An assembly line in a semiconductor factory, with workers at their stations. Marvell Technology saw its share prices nosedive by 13.27 percent on Thursday to end at $52.87 each as investor sentiment was dampened by the ongoing trade war's potential impact on its business. With MRVL's business of manufacturing and distributing semiconductor products globally, including China, the escalating trade war between two of the world's largest economies could largely impact supply chain operations and result in lower demand for its products. In other news, MRVL entered into a definitive agreement with Infineon Technologies AG for the sale of its automotive ethernet business Brightlane for $2.5 billion. According to MRVL, the sale is expected to generate revenues between $225 million and $250 million for fiscal year 2026. 'Marvell has transformed itself into a leading data infrastructure solutions provider, with the data center end market driving 75 [percent] of consolidated revenue in the fiscal fourth quarter of 2025,' said MRVL Chairman and CEO Matt Murphy. 'We believe this transaction delivers the strongest financial return for Marvell shareholders, given its compelling valuation.' Overall, MRVL ranks 7th on our list of stocks that traders heavily sold down on Thursday. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
