From Nasdaq: 2025-06-01 23:26:00

Marvell Technology (NASDAQ:MRVL) exceeded Q1 fiscal 2026 expectations with earnings of $0.62 per share and sales of $1.9 billion. Despite this, the stock dropped 3% in after-hours trading, down 43% year-to-date. Investors seeking consistent returns could explore diversified options like the Trefis High Quality portfolio for impressive performance.

Marvell’s stock appears attractive at $62 per share, trading at 8.3x trailing revenues and 32x trailing adjusted earnings. Despite average revenue growth of 10% over three years, recent accelerated growth projections of 42% this year and 20% next year indicate potential for significant upside. Analysts target over 50% increase.

Marvell’s Q1 showcased robust growth, with sales up 63% year-over-year driven by a 76% increase in data center sales. The company anticipates Q2 sales around $2.0 billion, aligning with street estimates. The strategic entry into custom AI chips for hyperscaler data centers positions Marvell for further growth and partnerships with key AI players.

While Marvell’s valuation seems attractive, historical performance during economic downturns suggests susceptibility to adverse conditions. Concerns about Amazon’s Trainium chips ramp-up and external demand impact future revenue growth. Investors should weigh these risks before considering investing in Marvell stock. Diversifying with the Trefis High Quality portfolio can mitigate single-stock risk while offering strong upside potential.



Read more at Nasdaq: Buy MRVL Stock At $60?