Marvell Technology Intrinsic Value Calculation – Marvell Technology Q3 Performance Expected to Outperform Thanks to AI: B.Riley
December 12, 2023
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Marvell Technology ($NASDAQ:MRVL) Group Ltd (MRVL) is a global semiconductor company that designs, develops, and markets a wide range of analog, mixed-signal, digital signal processing, and embedded processing solutions. The company’s products are used in smartphones, computers, automotive applications, and consumer electronics. MRVL is headquartered in Santa Clara, California and trades on the NASDAQ exchange. B. Riley FBR recently predicted that Marvell Technology Group Ltd’s (MRVL) third quarter guidance may outperform expectations due to their utilization of artificial intelligence (AI). AI provides Marvell with the technology needed to drive their cutting-edge products, aiding in their ability to develop and bring new products to market faster. The utilization of a powerful AI platform has enabled Marvell to rapidly develop and deploy new products that offer superior performance and power efficiency, while keeping costs low. This feature has allowed the company to remain competitive in the rapidly changing semiconductor industry.
Additionally, Marvell’s AI platform has enabled them to create products with increased scalability and flexibility, allowing them to rapidly respond to changes in the marketplace. Due to their utilization of AI, B. Riley FBR predicts that Marvell’s Q3 guidance is likely to be in line with or better than expected. This expectation is due to their ability to quickly develop and deploy new products thanks to their AI-driven technology platform. With these advancements in place, Marvell is well positioned to continue their success into the future.
Market Price
Analysts from B. Riley have predicted that MARVELL TECHNOLOGY’s performance in the third quarter of this year is expected to outpace its performance in previous quarters, thanks to the company’s advances in artificial intelligence. On Tuesday, MARVELL TECHNOLOGY’s stock opened at $55.8 and closed at $55.6, which was a 0.6% decrease compared to its previous closing price of 55.9. This minor dip was not enough to discourage analysts from predicting that Marvell Technology will experience significant growth in the near future. Marvell Technology has been investing heavily in the development of its AI capabilities, which it believes will be key to its success over the coming months and years. The company has been making strides in various areas of AI, such as machine learning, computer vision, and natural language processing, which it believes will enable it to develop more advanced products and services.
With the AI-driven solutions that Marvell Technology has developed, the company is expected to be able to significantly increase its market share, boost its customer base, and gain competitive advantages over its rivals. Overall, analysts from B. Riley are confident that Marvell Technology will be able to perform better than expected in the third quarter of this year due to its investments in AI. With its strong capabilities in artificial intelligence, Marvell Technology is expected to be able to capitalize on new opportunities and move closer to achieving its goals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marvell Technology. More…
| Total Revenues | Net Income | Net Margin |
| 5.5k | -556.1 | -8.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marvell Technology. More…
| Operations | Investing | Financing |
| 1.18k | -338.5 | -834.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marvell Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.71k | 6.48k | 17.66 |
Key Ratios Snapshot
Some of the financial key ratios for Marvell Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.9% | 7.6% | -8.8% |
| FCF Margin | ROE | ROA |
| 15.5% | -2.0% | -1.4% |
Analysis – Marvell Technology Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of MARVELL TECHNOLOGY to determine its fair value. Our proprietary Valuation Line reveals that the fair value of MARVELL TECHNOLOGY is around $62.5. However, the current trading price of MARVELL TECHNOLOGY stock is $55.6, which is undervalued by 11.0%. This provides investors with an attractive opportunity to purchase MARVELL TECHNOLOGY stock at a discount, although we advise investors to complete their own research before making any decisions. More…
Peers
Marvell Technology Inc is a fabless semiconductor company that designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. Its main competitors are Advanced Micro Devices Inc, GLOBALFOUNDRIES Inc, and Intel Corp.
– Advanced Micro Devices Inc ($NASDAQ:AMD)
Advanced Micro Devices Inc is a technology company that designs and produces semiconductor products. The company has a market capitalization of 92.39 billion as of 2022 and a return on equity of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, and servers.
– GLOBALFOUNDRIES Inc ($NASDAQ:GFS)
GLOBALFOUNDRIES Inc is a leading provider of semiconductor manufacturing services. The company has a market cap of 28.43B as of 2022 and a Return on Equity of 5.09%. The company offers a wide range of services, including manufacturing, design, and testing. GLOBALFOUNDRIES is a trusted partner for many of the world’s leading companies.
– Intel Corp ($NASDAQ:INTC)
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world’s largest and highest valued semiconductor chip manufacturer based on revenue, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
Summary
Marvell Technology is a semiconductor company that has seen market success through investments in AI and other emerging technologies. Analysts at B.Riley have projected that the company will post in-line or better results for Q3, and have expressed confidence in the company’s guidance. Marvell Tech has seen strong performance in the areas of storage, networking, connectivity, and automotive, and looks to continue to capitalize on new trends in these markets.
Their continued investments in AI technology have resulted in increased profits and improved customer satisfaction. Marvell is expected to continue to expand its reach and remain competitive in the tech industry.
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