Marvell Technology, Inc Analysis
Chart done on daily timeframe. Marvell Technology investors are up on their investment year to date, but uncertainty is beginning to grow around the company’s ability to deliver on growth expectations. Despite having a prime position in the artificial intelligence boom, the company’s revenue has fallen short of expectations, largely because of falling demand in their enterprise network business and consumer segment. Soft industry demand hit the company hard, impacting core business segments severely year over year; however the company gave an optimistic outlook for the second half of 2025. What has saved them this year is their data center business, which accounts for 70% of their revenues. The boom in artificial intelligence infrastructure balanced out the declining revenues from other parts of their business, and forecasts show the segment is expected to grow by as much as 300% by 2028. As of now, Marvell controls about 10% of the total data center market share, but that number is expected to double in the coming years.
Of course company leaders are going to paint an optimistic picture for investors; however it’s important to look at the current numbers to really gauge this company. When analyzing their revenues, The company has continuously disappointed on revenue expectations, with 2023 revenues declining 7%. This comes as a red flag because the company is positioned in a booming industry yet their revenues don’t reflect that growth. As mentioned above, we have to account for their falling revenues in other parts of the business, but Wall Street may be unforgiving if Marvell doesn’t begin posting substantial growth in the coming quarters. Comparing it to its peers, Marvell is one of the few names in the industry that hasn’t posted significant growth, and in a world filled with competitors, “if you’re not growing, you’re dying.”
This doesn’t mean Marvell is a throwaway company, but with revenues at only 5B per year, and with net income nearing $1B in losses, it’s hard to justify the company’s current 62B valuation.
So what can save them?
Their future ability to deliver on earnings. The company’s current ability to maintain its market cap is purely based on the optimism around artificial intelligence and also based upon their leaders’ remarks about the potential they have. Although the stock is up 23% YTD, it hasn’t been able to get out of the range for about six months while the rest of the market and technology sector has rallied significantly, which could be a result of lack of interest from investors due to plateaued growth.
All in all, this is a company to consider as a “buy and forget” stock; this is rather a high risk investment that should be eased into if taken and continuously watched quarter over quarter for new numbers and developments.
Technical analysis:
If we forget about the numbers and performance to purely focus on the chart, we see that Marvell is currently holding a bullish range and trend line following their earnings report. Buyers need to defend the 61.40 level going forward to avoid a sell-off. Breakout point in place is 85.80 for a move to 94.00-96.00.