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05-08-2025
- Business
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Is MRVL Stock a Buy, Sell or Hold at a P/E Multiple of 7.15X?
Marvell Technology MRVL is currently trading at a discounted valuation, with its forward 12-month price-to-earnings (P/E) ratio at 7.15X, which is lower than the Zacks Electronics - Semiconductors industry average of 8.63X. Given MRVL's discounted valuation, investors might be wondering: Is this an opportunity to buy, or are there deeper challenges that could keep the stock in check? MRVL Forward 12 Months (P/E) Valuation Chart Image Source: Zacks Investment Research Product Innovation Positions MRVL for Sustainable Growth What makes Marvell Technology's low P/E value more attractive is its robust business prospects. Due to the proliferation of AI and high performance computing among data centers and hyperscalers, MRVL is experiencing massive traction in custom Application Specific Integrated Circuits, Custom high bandwidth memory Compute Architecture, Co-Packaged Optics Platform and Multi-Die Packaging Platform products. As data centers perform a growing number of AI-related tasks, improvements in networking, interconnect, processing and storage capabilities, requiring high-performance semiconductor solutions become crucial. Marvell Technology is capitalizing on this opportunity with 800G PAM, 400ZR DCI, and 1.6T PAM digital signal processing products. This growth is evident in Marvell Technology's data center segment, which has taken the lead among all its segments with 76% year-over-year revenue growth in the first quarter of fiscal 2026. Marvell Technology also plans to expand its customer base among hyperscaler customers that seek to stand out, cut expenses and want to gain more control over their AI infrastructure. Marvell Technology has collaborated with NVIDIA and leveraged the latter's NVLink Fusion platform to build comprehensive rack-scale AI solutions to meet the needs of hyperscalers. Furthermore, the shift from copper to optical connectivity in AI infrastructure represents a massive growth opportunity for Marvell Technology's Co-Packaged Optics technology. Marvell Technology is also experiencing a recovery among its enterprise networking and carrier infrastructure segments on the back of the demand rebound. However, Marvell Technology is also facing some challenges. With all these factors at play, the Zacks Consensus Estimate for Marvell Technology's 2026 revenues is pegged at $8.2 billion, indicating year-over-year growth of 42.6%. The consensus mark for earnings is pegged at $2.79 per share, suggesting a whopping 77.7% year-over-year increase. Image Source: Zacks Investment Research Key Challenges Faced by Marvell Technology Marvell is experiencing traction in its AI-focused custom silicon semiconductor business, but the margin in this business is half the story, as the margin in this business is fundamentally lower, affecting MRVL's gross margin. MRVL's custom AI silicon, including XPUs, is lowering MRVL's gross margins due to higher costs associated with manufacturing these chips. The ongoing macroeconomic uncertainties, like the U.S. government's evolving stance toward China, from which MRVL gained about 43% of its fiscal 2025 total revenues, are also a concern for the company. Investors' skepticism has also been intensified by the fear of sanctions and persistent tariff threats to China, where Marvell Technology owns research and development facilities. Furthermore, softness in MRVL's consumer end market due to volatility in gaming demand and lumpy order patterns in the industrial business has added to investor concerns. Marvell Technology also faces intense competition from Broadcom AVGO and Advanced Micro Devices AMD in the AI accelerator space and Micron Technology MU in the HBM space. Advanced Micro Devices is a strong player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices' reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. Broadcom's advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Micron Technology is also riding a powerful wave of demand for high-bandwidth memory (HBM) and DRAM products, especially as AI workloads surge. Micron Technology has made significant strides in AI-optimized memory solutions, with its HBM3E products gaining attention for their superior power efficiency and bandwidth. These factors have weighed on MRVL stock's performance. Stock Price Performance of MRVL Marvell Technology has underperformed the Zacks Electronics - Semiconductors industry in the year-to-date period by losing 32.6%. Marvell Technology YTD Performance Chart Image Source: Zacks Investment Research Conclusion: Hold MRVL Stock for Now Marvell Technology is facing several headwinds, including geopolitical tension, shrunken margins and growing competition across its end markets. However, the company has strong long-term fundamentals supported by its strong foothold in the data center and high-speed networking market. Considering all these factors, we suggest that investors should retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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15-07-2025
- Business
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Can NVIDIA's End-to-End Stack Keep Driving Networking Revenues?
NVIDIA Corporation's NVDA networking business is gaining strong momentum, thanks to its full-stack approach. In the first quarter of fiscal 2026, networking revenues surged 64% sequentially to approximately $5 billion. The robust growth was driven by the rise in AI factory buildouts and the growing demand from hyperscalers and enterprises building large AI clusters. NVIDIA's networking business focuses on providing high-performance connectivity solutions, including chips, switches, interconnects and software for data centers, which help customers scale their AI workloads more efficiently. The company's NVLink interconnect offers 14 times the bandwidth of PCIe Gen 5 and supports massive data throughput in a single rack. New offerings like NVLink Fusion are attracting custom chipmakers and CPU vendors, adding more partners to the NVIDIA ecosystem. In the last reported quarter, NVLink shipments exceeded $1 billion, showing strong early adoption. NVIDIA's Ethernet networking platform, Spectrum-X, is also expanding quickly. It is now on pace to generate more than $8 billion in annualized revenues. Companies like Microsoft, Meta, Oracle and Google Cloud are already deploying it to handle AI network traffic with low latency and high utilization. As AI workloads grow more complex and interconnected, NVIDIA's end-to-end stack makes it easier and cheaper to scale. If this demand trend holds, networking could become a larger and more stable revenue driver over time. Per our model, the company's revenues from the networking business are estimated to grow 57.7% year over year to $20.5 billion in fiscal 2026. Broadcom AVGO and Marvell Technology MRVL are two major companies that are continuously expanding in the AI networking space. Broadcom offers custom networking chips and high-speed interconnects to major cloud providers. Its strong position in Ethernet switches and application-specific integrated circuits (ASICs) gives it a foothold in the AI infrastructure space. However, Broadcom doesn't offer a complete end-to-end solution like NVIDIA. The company relies more on partnerships with cloud customers rather than offering a unified platform. Marvell Technology is also focusing on data center connectivity and recently launched products tailored for AI and cloud workloads. The company works with major hyperscalers and has a growing presence in optical and Ethernet switching. But like Broadcom, Marvell lacks NVIDIA's software and system-level integration, which limits its ability to capture the full AI networking stack. Shares of NVIDIA have risen around 22.2% year to date against the Zacks Computer and Technology sector's gain of 7.4%. Image Source: Zacks Investment Research From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 33.81, higher than the sector's average of 27.39. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NVIDIA's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 41.8% and 31.9%, respectively. Estimates for fiscal 2026 have been revised downward over the past 30 days, while those for fiscal 2027 have been revised upward in the past 30 days. Image Source: Zacks Investment Research NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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23-06-2025
- Business
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Astera Labs' AI Infrastructure Demand Accelerates: More Upside Ahead?
Astera Labs ALAB has positioned itself in the field of next-generation AI and cloud infrastructure with a robust start to 2025. The company recently outlined a compelling roadmap powered by technological leadership across interconnect standards, a factor that now stands as its core growth engine. Let us delve deeper. Astera Labs has built a first-mover advantage with a full stack of PCIe Gen 6 solutions, including retimers, smart gearboxes, optical modules and fabric switches, designed to meet the stringent performance and signal integrity demands of modern AI racks. At the same time, its Leo CXL product family addresses the growing need for memory expansion and pooling as data center CPUs adopt CXL 2.0 and 3.0, enabling support for both AI and general-purpose compute workloads. Looking ahead, Astera Labs is poised to further expand its market through emerging standards like UALink and NVLink Fusion. With UALink 1.0 introduced in early 2025, Astera Labs plans to commercialize solutions by 2026, opening the door to a scalable, open interconnect for AI accelerators and unlocking a multibillion-dollar opportunity. In parallel, the company's deepening collaboration with NVIDIA NVDA integrates NVLink Fusion into its Intelligent Connectivity Platform, delivering low-latency, memory-coherent links for GPU clustering, essential for powering the next generation of LLMs and agentic AI models. Marvell Technology- Diversified Scale Meets AI Connectivity: Marvell Technology MRVL is a notable peer in data center interconnects, with strengths in custom ASICs, PAM4 DSPs and 800G optical solutions. While its broader focus spans 5G and enterprise storage, Marvell increasingly competes with Astera Labs in cloud-optimized Ethernet and silicon platforms. However, Astera Labs' tighter integration of hardware and software via the COSMOS suite gives it a unique edge in AI-specific system observability and fleet management, areas where Marvell remains less specialized. Broadcom-Scale Leader With Limited AI Rack Focus: Broadcom AVGO holds strong positions in PCIe switches, SerDes and networking silicon, serving all major hyperscalers. Yet, its offerings are typically component-level and less tailored for AI rack-scale deployments. Unlike Broadcom's broad-market strategy, Astera Labs focuses on delivering interoperable subsystems purpose-built for AI, giving it greater agility in addressing emerging infrastructure needs like UALink, CXL and NVLink-based clustering. Astera Labs has risen 26.2% in the past three months compared with the industry and the sector's 10.2% and 7.5% growth, respectively. The S&P 500 index has improved 3.6% during the said period. Image Source: Zacks Investment Research Astera Labs is presently trading at a forward 12-month price-to-sales of 19.19X, which is below its 1-year median of 19.86X. However, it remains overvalued compared with the industry. Image Source: Zacks Investment Research ALAB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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20-06-2025
- Business
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Marvell's AI Bet: Will NVLink and UALink Drive Custom Chip Wins?
Marvell Technology MRVL is enhancing its role in artificial intelligence (AI) infrastructure by expanding its custom chip capabilities. Marvell continues to integrate its custom compute platform with new components that improve performance, scalability, and integration across large-scale the first quarter of fiscal 2026, Marvell reported record Data Center revenues of $1.44 billion, up 76% year over year. The growth was driven by the rapid scaling of custom AI silicon. To support continued momentum, Marvell recently announced multiple strategic additions to its custom silicon May 2025, Marvell partnered with NVIDIA to offer NVIDIA's NVLink Fusion technology to customers deploying Marvell's custom cloud platform silicon. This enables custom XPUs to connect with NVIDIA's rack-scale hardware architecture. Marvell noted that its custom silicon with NVIDIA NVLink Fusion offers its customers greater flexibility and options in developing next-generation AI infrastructure. This announcement reflects that MRVL's custom chips are gaining credibility and traction, even among companies like the same month, Marvell introduced its new multi-die packaging solution, which is built on its proprietary interposer technology. The solution is already in production for a customer-specific XPU program. The platform enables more efficient die-to-die interconnect, lowers power consumption, enhances yield and lowers product this month, Marvell introduced a third addition to its custom platform — Ultra Accelerator Link (UALink) scale-up solution. The solution delivers an open-standards-based scale-up interconnect platform with high compute utilization and low latency. UALink is paired with Marvell custom silicon capabilities. This allows compute vendors to build solutions, including custom accelerators with UALink controllers and custom switches, enabling optimal performance for rack-scale these additions support Marvell's push to enable full rack-level custom infrastructure. Moreover, with new components entering production, Marvell is positioned to play a crucial role in powering the next generation of large-scale AI systems. Advanced Micro Devices AMD is advancing its rack-level AI solutions through its acquisition of ZT Systems. This acquisition enables Advanced Micro Devices to reduce deployment time for hyperscalers by combining AMD's CPUs, GPUs, and networking components. This move also enables Advanced Micro Devices to accelerate time to market for its OEM and ODM AVGO is aggressively scaling its AI networking portfolio. In the second quarter of fiscal 2025, AVGO's AI networking revenues jumped 170% year over year and now comprise 40% of its total AI semiconductor revenues. Broadcom also introduced the Tomahawk 6 switch with a 102.4 Terabits per second switch capacity. It is designed to enable AI clusters of over 100,000 AI accelerators to be deployed in 2 tiers. This move enables Broadcom to achieve better performance in training its next-generation frontier models through lower latency, higher bandwidth and lower power. Shares of Marvell Technology have plunged 31.9% year to date against the Electronics - Semiconductors industry's growth of 6.4%. Image Source: Zacks Investment Research From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.36X, lower than the industry's average of 8.15X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MRVL's fiscal 2026 and fiscal 2027 earnings implies year-over-year growth of 77.71% and 27.73%, respectively. The earnings estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past 30 days and seven days, respectively. Image Source: Zacks Investment Research MRVL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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11-06-2025
- Business
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ALAB Stock Shines as AI Infrastructure Ties With NVIDIA Deepen
Astera Labs ALAB is gaining market as a critical enabler of next-generation AI and cloud infrastructure, driven by its expanding portfolio of high-performance connectivity solutions. In the first quarter of 2025, revenues surged 144% year over year, banking on strong demand across its Aries, Taurus, Leo and Scorpio product lines. Historically known for its Aries PCIe retimers supporting NVIDIA AI servers, Astera Labs has rapidly expanded its portfolio to now encompass full-rack solutions, including Scorpio Fabric Switches, Aries 6 Retimers and Smart Gearboxes, Taurus Ethernet modules and Leo CXL controllers designed to address both scale-up (intra-server, accelerator cluster) and scale-out (inter-server, data center-wide) connectivity challenges. The company's COSMOS software suite further enhances this hardware synergy, enabling advanced diagnostics, fleet observability and performance optimization. Additionally, the company has expanded its strategic collaboration with NVIDIA NVDA to support the NVLink Fusion ecosystem for Blackwell-based MGX platforms and has stepped up as a promoter member and board participant in the UALink Consortium, helping to advance open, high-performance interconnect standards for accelerator-rich AI clusters. AMD and QCOM — Two Other Prominent Players Working in This Niche Advanced Micro Devices AMD: The company's expanding portfolio of EPYC CPUs and Instinct GPUs is aligned with the PCIe 6.0 standard, which is becoming foundational in next-generation AI infrastructure. As data center and AI rack architectures migrate toward PCIe 6.0 to meet rising bandwidth and latency demands, AMD's adoption of this standard is indirectly fueling demand for high-speed interconnect solutions like those offered by Astera Labs. Qualcomm QCOM: Qualcomm is making a bold move into the AI data center connectivity space with its recent $2.4 billion acquisition of Alphawave, a company specializing in high-speed connectivity IP. This strategic acquisition signals Qualcomm's intention to become a more prominent player in AI infrastructure, a domain where Astera Labs is already deeply entrenched. Additionally, Qualcomm is now partnering with NVIDIA in the NVLink Fusion initiative, placing it in direct competition with companies like Astera Labs that are focused on enabling high-bandwidth, low-latency interconnects for AI racks. ALAB's Price Performance and Valuation Astera Labs has rallied 32.9% in the past three months compared with the industry's 15.8% growth and the sector's 12.3% rise. The S&P 500 index, meanwhile, has improved 7.9% during the said period. Share Price Comparison: ALAB Image Source: Zacks Investment Research Astera Labs is presently trading at a forward 12-month price-to-sales of 19.02X, which is below its 1-year median of 19.95X. However, it remains overvalued compared to the industry. Image Source: Zacks Investment Research ALAB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
