Marvell Technology: Is the Chip Stock Now a Buy?

Last Updated: 13. Dezember 2023By

Marvell Technology is not as well-known as Intel, but just as successful. The US-based company offers semiconductors for broadband communication and storage solutions. The company offers a wide range of products that include solutions for switches, transceivers, gateways, communication controllers, and storage.

Revenues fall, net loss increases For the 3rd quarter, the company reported revenues of 1.42 billion US$, compared to 1.54 billion US$ in the previous year. The net loss amounted to 164.3 million US$, compared to a net income of 13.3 million US$ in the year prior. The loss per share amounted to 0.19 US$, compared to an earnings per share from continuing operations of 0.02 US$ a year ago.

Net loss also rises in the nine-month comparison In the first nine months, revenues amounted to 4.08 billion US$ compared to 4.50 billion US$ in the previous year. The net loss amounted to 540.7 million US$ compared to 148.1 million US$ in the year prior. The loss per share amounted to 0.63 US$ compared to 0.17 US$ in the previous year.

Forecast for 4th quarter The chip company expects revenues of 1.42 billion US$ for the 4th quarter with a possible deviation of plus or minus 5%. The loss per share is expected to be 0.03 US$ plus or minus 0.05 US$ per share.

Despite weak figures: Analysts see share price potential of 85% Conclusion: As you can see from the chart, the chip share price has been doing well since the beginning of the year. However, a downward trend has dominated since summer. However, analysts are positive. 28 of 31 analysts recommend buying and 3 want to hold. And: no sales recommendation. The average analyst target price is 67.50 US$, the highest is 100 US$. This is almost a doubling of the share price. But first, the chip company must return to profitability. This is expected for 2024. The P/E ratio of 34 is already quite high.