Since March 2025, Marvell Technology has been in a holding pattern, posting a small loss of 4.6% while floating around $67.16. The stock also fell short of the S&P 500’s 15.9% gain during that period.
Is now the time to buy MRVL? Find out in our full research report, it’s free.
Why Is Marvell Technology a Good Business?
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
1. Skyrocketing Revenue Shows Strong Momentum
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Marvell Technology grew its sales at an incredible 20.9% compounded annual growth rate. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy).
2. Projected Revenue Growth Is Remarkable
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.
Over the next 12 months, sell-side analysts expect Marvell Technology’s revenue to rise by 19.7%, an improvement versus its 20.9% annualized growth for the past five years. This projection is admirable and implies its newer products and services will catalyze better top-line performance.
3. Operating Margin Rising, Profits Up
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Marvell Technology’s operating margin rose by 11.7 percentage points over the last five years, as its sales growth gave it operating leverage. Its operating margin for the trailing 12 months was 1.3%.
Final Judgment
These are just a few reasons Marvell Technology is a rock-solid business worth owning. With its shares lagging the market recently, the stock trades at 21.4× forward P/E (or $67.16 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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