- Price
- $224.69
- Fair value
- $300.00
- Discount
- 25.1%
- Uncertainty
- High
- LSEG rating
- 1.89
- Moat
- Narrow
- Next earnings
- 2026-11-26
- Next earnings is estimate
- No
- Company name
- Marvell Technology
- Sector
- Semiconductors
- About
- Marvell designs chips that move and switch data inside AI data centers. Its main products are custom AI chips built for specific large customers, and networking chips that connect thousands of AI chips together at high speed. Marvell does not run its own factories. It pays other companies, like TSMC, to manufacture the chips it designs.
- Thesis
- Marvell's custom chip business serves a small number of large cloud companies that design their own AI chips instead of buying from Nvidia. Growth in this business has been lumpy, since revenue depends on a small number of big customer programs starting and ramping up. Management has raised its revenue outlook twice in a row, and expanded a deal with a major cloud customer to include more custom chip programs. If these programs ramp up as planned, Marvell's growth can catch up to what its higher-growth peers already show, and the discount can close.
- Risks
- Marvell's custom chip revenue depends on a small number of large customers. If one of them moves its next chip generation in-house or to a competitor, Marvell's growth outlook can fall quickly.
Marvell competes with Broadcom, which has a larger and more established custom chip business. Marvell must keep winning new programs to grow at the pace management has guided.
Marvell does not own the factories that make its chips. A capacity shortage at its manufacturing partners can delay Marvell's own product ramps.
- Recent events
- 2026-08-27: Marvell reported Q2 fiscal 2027 results. Revenue reached a company record of $2.74 billion. Management raised the fiscal 2027 revenue outlook to about $12 billion, and the fiscal 2028 outlook to about $18 billion.
2026-08-27: Marvell expanded its custom chip agreement with a major cloud customer to include more programs, with revenue expected from fiscal 2029 onward.