Marvell Technology, Inc. (MRVL): A Bull Case Theory

We came across a bullish thesis on Marvell Technology, Inc. on Value investing subreddit by Himothy8. In this article, we will summarize the bulls’ thesis on MRVL. Marvell Technology, Inc.'s share was trading at $84.26 as of October 21st. MRVL’s trailing and forward P/E were 22.15 and 25.64 respectively according to Yahoo Finance.

Marvell Technology (MRVL) presents a compelling investment opportunity, trading significantly below its calculated intrinsic value of $94.80 per share. Applying a 5% margin of safety yields a recommended buy price of $90.29, offering potential upside contingent on the successful execution of its strategic pivot toward AI and data center markets. The market’s recent overreaction to Marvell’s cyclical, “lumpy” revenue patterns has created a rare entry point for long-term investors.

Marvell is a leading fabless semiconductor company focused on B2B solutions across data infrastructure, including computing, networking, security, and storage, with core growth driven by Custom ASICs for AI workloads and hyperscale cloud providers, alongside electro-optics and networking solutions essential for managing data traffic.

Its recent divestiture of the non-core Automotive Ethernet business to Infineon Technologies for $2.5 billion demonstrates disciplined capital allocation, with proceeds directed toward share buybacks and strategic R&D in high-growth segments. Financially, Marvell delivered record Q2 FY26 revenue of $2.006 billion, up 58% year-over-year, driven by data center revenue of $1.44 billion, with non-GAAP operating margins expanding 870 basis points to 34.8%, reflecting scalable operational leverage. The company’s strong cash flow and balance sheet flexibility support continued shareholder returns and strategic investments.

While GAAP profitability remains negative due to non-cash charges, non-GAAP results highlight robust underlying performance. The temporary lull in hyperscale orders has been misinterpreted by the market, creating a mispricing opportunity. With a simplified, AI-focused business model, strong operational execution, and substantial upside potential, Marvell offers a highly attractive risk/reward profile for patient, long-term investors.

Previously we covered a bullish thesis on Marvell Technology, Inc. (MRVL) by Simple Investing in January 2025, which highlighted the company’s data center-driven growth, expansion of custom ASICs, and strong electro-optics solutions. The company's stock price has depreciated approximately by 26.9% since our coverage. The thesis still stands as Marvell’s strategic pivot toward AI remains intact. Himothy8 shares a similar perspective but emphasizes the Automotive Ethernet divestiture and operational leverage as catalysts.

Marvell Technology, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held MRVL at the end of the second quarter which was 73 in the previous quarter. While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.