Jim Cramer on Marvell: "I Think the Stock's a Buy Going Into the Quarter"

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the stocks in focus this week under Jim Cramer’s game plan. Cramer was bullish on the stock ahead of the company’s earnings, as he remarked:

Marvell Tech reports on Thursday, and people are expecting big things because of its partnerships with several hyperscalers, most notably Amazon Web Services, which is selling out of its chips. The demand is so big here that it was mentioned by name in today’s, when everyone was talking about it. Marvell CEO Matt Murphy does a remarkable job. I think the stock’s a buy going into the quarter. That’s right. I’m actually recommending buying Marvell ahead of the earnings.

Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions for data infrastructure, including system-on-a-chip designs, processors, and networking and storage products. A caller sought Cramer’s advice about the stock during the February 2 episode, and he responded:

They’re an excellent company, but they’re a derivative company. They make stuff that actually competes, the main part of the business that is a little like NVIDIA, frankly, and they’re also partnered with NVIDIA. They make special chips. They make some of the best special chips in the world, as does Broadcom, by the way. All these are on the negative side.

The long side are things like Western Digital, Sandisk, because these are not in shortage, okay? They just have enough chips. They’re not like that. So what people are doing is buying the shortage stocks and selling the ones, NVIDIA, Broadcom, and Marvell, that don’t have a shortage. It’s a really stupid way to invest, but that’s what the market’s doing right now. And I’m sorry, I wish I could reverse it myself, but I can’t because Matt Murphy is a fabulous CEO at Marvell.

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