Marvell Technology breakdown

Its time to breakdown the first of the 5G stocks on my list. $MRVL or Marvell technologies in on deck.


Current Price: $33.98

52/Wk High: $36.915

52/Wk Low: $16.45


Read below for the breakdown!


Marvell is an excellent semiconductor and has shifted the majority of the business into the focus of 5G. The companies goal is to build out the 5G network that will support all of the new devices and systems that will soon use 5G.


In order to do this Marvell has made some major deals to strengthen the company and expand its reach.


First Marvell made a deal to buy out Cavium for $6 billion. Cavium is a chipmaker as well, and by acquiring the competitor Marvell will expand its wireless connectivity business far quicker than the competition.


Secondly, Marvell has also acquired a company called Aquantia. This acquisition will strengthen Marvell’s ethernet segments in the multi-gig world of 5G and more. Furthermore, it makes the company more versatile against the competition. The gains from this deal will also strengthen their power to benefit from future high-speed networking that will be used in cars for autonomous drive solutions.


$MRVL also made a third acquisition of a company names Avera. The company is a semiconductor and it should further strengthen Marvell’s foothold on the 5G rollout and future.


$MRVL reported excellent first-quarter earnings with a $0.18 EPS beat versus the $0.04 EPS consensus. The company also delivered on revenue after reporting $694 million in net revenue.


Analysts are also bullish on the name. While the average price target is only $34.39/share the high is $42.00/share and I believe the price targets are in need of updating given the recent earnings beats and acceleration of the 5G rollout due to COVID.


Marvell is also quite protected given its large cash position of $668 million which is up roughly 16% when last reported on April 30, 2020.


The big money is also extremely bullish with net institutional ownership of 92.85%. Many big names like FMR LLC, Vanguard Group, and Blackrock all have holdings in the name well over a $1 billion.


In short, I am extremely bullish on $MRVL and will be looking to open a position in the name soon. While it is close to its high I think it has more room to run in the near term and plenty of gains on the horizon.


Disclaimer: This is not financial advice, simply opinion based on independent research.