Marvell Technology Group (MRVL) is a lesser-known stock that has been on my radar for some time; it is a semiconductor, 5G, and software idea, explains Carl Delfeld, growth stock specialist and editor of Cabot Explorer.
The best play on 5G may be smart devices — i.e., the “Internet of Things”. This is the name for all the web-enabled devices that collect, send and act on data using sensors, processors and other hardware to talk to each other.
5G is much more than just a faster internet. With data rates more than 100X that of 4G technology, it will have a major impact on many industries and services from robotics to artificial intelligence, self-driving cars and, of course, smartphones.
Marvell designs, develops and sells a wide variety of semiconductor products that are at the core of 5G-capable networks, processors and devices as they partner with and transition to 5G.
The company’s embedded processors and products are cutting-edge and already generating multibillion-dollar annual sales. The company’s reputation as a player in this 5G space was made as it revolutionized the digital storage industry by moving data at speeds way beyond expectations.
New markets are emerging in which Marvell has a first-mover advantage such as virtual reality, drones, data integration and consumer and industrial robotics. These are all huge markets, giving Marvell a long runway of growth.
With seven out of the top 10 automotive original equipment manufacturers (OEMs) purchasing Marvell chips, the company is set for a solid growth trajectory in this market.
