Marvell Technology (MRVL) $74
Networking infrastructure – It had a down year, with cyclicality in China and slower data center growth. China is about 50% of revenues.
That said, the forecast for the next three years is good, with 24% revenue growth and 35 to 40% adjusted earnings growth.
A lot of this is riding on growth from Nvidia and other AI investments in data centers.
Like most companies in the sector Marvell has also appreciated 73% in the past year so valuations are a bit expensive, 11x sales, with cyclicality and China exposure, it’s definitely on the higher side. It has also financed its acquisitions with debt, carrying a lot of interest burden.
I would prefer to buy 10% lower in the mid sixties for a better return – there is an AI event on April 11th, which may have more specifics/catalysts. Will keep a look out for that.