Marvell Technology (MRVL) is a fabless semiconductor company based in Bermuda. It is a global provider of silicon solutions for data storage, communications, and consumer markets, explains Sam Stovall, chief investment strategist at CFRA Research.

Our Strong Buy reflects our outlook for improving trends in the coming quarters and AI opportunities (+20% long-term EPS growth rate). We see AI-related sales rising to an annual run rate of +$800M by FY 24 end ($200M in FY 23), with significant upside thereafter, led by demand for its network connectivity and custom ASIC offerings as adoption for generative AI/LLMs grows.

Although we are disappointed by protracted weakness in the storage arena, we think orders rebound by mid-CY 24 and remain bullish on MRVL’s pipeline through FY 25. We view MRVL as the least exposed semi company to the consumer after smart acquisitions/asset sales, positioning it to benefit from secular prospects tied to key infrastructure plays. 

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