What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) jumped 3.2% in the morning session after the company's Board of Directors authorized a new $5 billion stock repurchase program.
This new authorization built on the company's ongoing commitment to return capital to stockholders. Marvell also entered into an agreement to repurchase $1 billion of its common stock through an accelerated share repurchase plan. Such buybacks can indicate that management believes the company's stock is a good investment and shows confidence in future growth. The company's CEO stated that a strong balance sheet provided the flexibility to keep investing in long-term growth, especially in the expanding market for AI infrastructure.
After the initial pop the shares cooled down to $75.99, up 1.8% from previous close.
Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 2.9% on the news that a series of analyst ratings and broader positive sentiment in the semiconductor sector. Over the past month, five analysts have weighed in on the company. Four firms—JP Morgan, Needham, Barclays, and Wells Fargo—maintained their positive "Overweight" or "Buy" ratings. However, B of A Securities bucked the trend by downgrading its rating to "Neutral." The upward movement also appears linked to broader strength in the chip industry. Optimism is being fueled by continued demand for artificial intelligence applications and positive results from competitor Broadcom, which helped ease recent concerns about the AI trade. This comes as investors look ahead to the SEMICON Taiwan 2025 conference, a major industry event set to begin this week.
Marvell Technology is down 33.1% since the beginning of the year, and at $75.99 per share, it is trading 39.7% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $2,004.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
