Marvell Technology Stock Forecast 2023

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    Marvell Technology is a semiconductor manufacturer, known for its networking, storage, and connectivity solutions. It was founded in 1995, with a focus on designing and developing integrated circuits for applications such as networking switches, data storage controllers, wireless chips, and custom ASICs. Marvell’s products are used in consumer electronics, enterprise storage systems, and data centers. And more specifically, the company offers Ethernet switches, routers, NICs, and wireless solutions for smartphones, tablets, and IoT devices.

    Currently, the company has a market capitalization of $56.28 billion. So, here we have a well-established and large company with a business in a fast-growing industry. Its stock might be worth taking a look at.

    Shares of Marvell started trading under the ticker symbol “MRVL” on NASDAQ as early as 2000. Since its IPO, it has grown by almost 360%, with many ups and downs along the way. Will this growth continue?

    In this post, we aim to present you with Wall Street forecasts, some recent financial results, and potential developments regarding Marvell’s business. Forecasts are going to help you assess the sentiment of analysts, while the financial picture coupled with qualitative aspects of future developments may allow you to understand how reasonable such projections are.

    Let’s get into it…

    key points

    • Wall Street forecasts currently suggest a slightly bearish outlook for Marvell.
    • When it comes to EPS and sales projections, the company seems to be guiding more or less in line with the last quarter’s results.
    • The company’s strong financial performance indicators suggest effective cost management, successful sales strategies, and the ability to generate cash from its business operations.

    Stock Forecast for 2023

    According to the 27 analysts who have provided 12-month price forecasts for Marvell, the median target price is $65. The highest estimate is $100, while the lowest estimate is $50. Now, the median target suggests a decrease of 1.11% from the company’s last recorded price of $65.73.

    marvel technology
    How To Buy Marvell Technology Stock
    Marvel Technology Group Inc is a well-established global semiconductor industry leader, known for its innovative and comprehensive portfolio of advanced technologies. The company was founded in 1995 and is based in Wilmington, Delaware. Marvel specializes in designing, developing, and manufacturing a diverse range of integrated circuits. These semiconductors are primarily employed within the sectors of […]

    When it comes to earnings per share (EPS), the estimated EPS for the next quarter is expected to be $0.32, with a range of $0.32 to $0.35. This suggests a slight improvement compared to the previous quarter’s EPS of $0.31. Additionally, over the past 12 months, MRVL has exceeded its EPS estimate 50% of the time, while the overall industry had a beat rate of 61.63%.

    Turning to revenue, the sales forecast for MRVL in the next quarter is expected to be around $1.33 billion, within a range of $1.32 billion to $1.33 billion. This demonstrates a consistent performance when compared to the previous quarter’s sales of $1.32 billion. However, during the past 12 months, the company has beaten its sales estimates 50% of the time, while the overall industry has had a 61.56% beat rate.

    As you can see, forecasts reflect a slightly bearish outlook for the company. The consensus in regard to the stock price performance seems to suggest no upside and the conservative guidance may justify it. But for a complete picture, let us also dive into some key financial metrics for the company.

    Starting with the gross profit margin (TTM), Marvell had a healthy one of 49.41%, slightly surpassing the sector median of 49.24%. This indicates effective cost management and efficient production processes.

    Moving on to net income margin (TTM), Marvell’s margin stands at -2.88%, which is below the sector median of 2.36%. This suggests that Marvell has faced challenges in generating net income, potentially due to higher expenses or other factors affecting profitability.

    Examining revenue growth (YoY), Marvell has shown strong growth at 14.13%, outpacing the sector median of 11.75%. This could be the result of successful sales strategies and market positioning.

    Now, when it comes to its operating cash flow growth (YoY), Marvell has achieved impressive growth of 26.71%, which is higher than the sector median of 5.33%. This is a promising sign as cash flow is crucial for sustaining and expanding the business.

    Before we talk about growth prospects, let us first take a look at Marvell’s financial health by examining some important ratios.

    Starting with some liquidity metrics, the interest coverage ratio (TTM) which is at 1.2 times suggests that Marvell is able to cover its interest obligations. Additionally, the current ratio (TTM) is 1.04 times, so the company also seems to have enough current assets to cover its current liabilities, albeit with a relatively small margin of safety.

    Moving on to the debt-to-equity ratio (TTM), Marvell has one of 0.2 times. This indicates that the company is conservatively financed and relies more on equity than debt to finance its operations.

    While the company seems to be financially healthy, its stock appears to be overvalued, overall. It currently has a relatively high P/E Non-GAAP (FWD) ratio of 42.77, which is much higher than the sector median of 21.43. More so, the Price/Sales (FWD) ratio stands at 10.20, significantly exceeding the sector median of 2.69. That said, the Price/Book (FWD) ratio of 3.64 is slightly lower than the sector median of 3.86, hinting at a potential undervaluation of the stock relative to its book value. But it’s not that much lower to change the overall picture.

    Now, what about those growth prospects? Recently, following projections of a significant revenue surge resulting from the AI boom, Marvell experienced a remarkable 23% increase in its stock price on May 26, 2023. This surge in investor confidence might be a reflection of anticipated financial gains from the growing AI industry for the company.

    Additionally, Marvell’s management has emphasized that AI represents a substantial opportunity for the company, with its significance and potential growing rapidly. Such a statement indicates that AI is not merely a short-lived trend but is likely a sustainable and impactful industry for leading chip companies. The company’s networking solutions are anticipated to play a crucial role in supporting the growth of AI, particularly as data centers reshape the demands for advanced AI capabilities.


    Overall, while the stock price performance suggests no upside and the conservative guidance justifies it, the positive response to Marvell’s anticipated financial gains from the growing AI industry indicates significant opportunities for the company. Marvell’s management has emphasized the importance of AI as a sustainable and impactful industry, where the company’s networking solutions are expected to play a crucial role in supporting AI growth.

    Regardless, interested investors should be cautious as the valuation currently seems to be high for MRVL. It is possible that when it comes to the prospect of generating significant revenue from AI, it is priced in.


    What is the future of MRVL stock?

    Based on the forecasts and analyst assessments, the outlook for MRVL stock suggests a slightly bearish sentiment, indicating potential challenges or limited growth opportunities in the near future.

    Is Marvell Technology overvalued?

    Based on its relatively high valuation metrics, such as the P/E Non-GAAP (FWD) ratio and Price/Sales (FWD) ratio, Marvell Technology may be considered overvalued compared to the sector median, indicating elevated investor expectations for the company’s future earnings growth.

    Should I invest in Marvell?

    The decision to invest in Marvell should be based on a thorough analysis of your investment goals, risk tolerance, and consideration of factors such as the company’s financial health, industry outlook, and market conditions.

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