California · Local Post
Shares of chipmaker Marvell Technology (MRVL +7.05%) have surged over 160% this year, with its market cap now at $200 billion. The company’s growth is driven by strong demand for its AI-related chips, providing an alternative to Nvidia and Broadcom. Jensen Huang, CEO of Nvidia, has previously stated that Marvell could become the next trillion-dollar company. While this has boosted the stock, it remains far from achieving that status.
Marvell’s upcoming Investor Day on October 6 could further propel its stock price, as it may reveal additional positive developments for investors. The company reported earnings last month, raising its guidance and highlighting exceptional demand for its products. In the second quarter of fiscal 2027 (ended August 1), net revenue rose by 37% to $2.7 billion, with operating income increasing by 35% year over year. The company emphasized broad-based strength in its data center portfolio, particularly in connectivity and custom business growth.
Despite its potential, Marvell’s stock is not cheap—trading at around 70 times trailing profits and 50 times expected future earnings. Investors should weigh the risks of high valuation against the need for alternative AI chip options. While Marvell may be worth buying for long-term investors, caution is advised due to its elevated valuation.
Source: The Motley Fool
