Has Marvell Technology Group Ltd. (MRVL) Become the Perfect Stock?

One big reason for Marvell Technology Group Ltd. (NASDAQ:MRVL)’s decline has been the general weakness of the PC industry. Marvell was somewhat slow to adapt to the growing mobile market, but unlike some of its larger rivals that remain mired in the dying PC world, Marvell has actually taken steps to make the transition toward more forward-looking businesses, including mobile chips and solid-state drives.

One area where Marvell is aiming is in emerging markets. Its new quad-core processor and integrated communications chip is well-suited for the low-cost smartphones and tablets that dominate the market there.

Marvell Technology Group Ltd. (NASDAQ:MRVL) faces plenty of competition. QUALCOMM, Inc. (NASDAQ:QCOM) won business away from Marvell by taking over its place as primary chip provider for Research In Motion Ltd (NASDAQ:BBRY), and NVIDIA Corporation (NASDAQ:NVDA) is fighting hard to push its Tegra line and other chips into mobile devices worldwide as well. Yet with hundreds of millions of smartphones in the $100 range expected to sell in the next year, Marvell just needs to get a reasonably sized slice of a big pie.

To improve, Marvell Technology Group Ltd. (NASDAQ:MRVL) needs to get past its recent patent setback, in which Carnegie Mellon University successfully sued the company to win a $1.17 billion judgment, and get its revenue moving back in the right direction. Instituting a new dividend last summer was good for shareholders, but to achieve perfection, Marvell Technology Group Ltd. (NASDAQ:MRVL) needs to produce the growth necessarily to keep rewarding investors for the long haul.

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The article Has Marvell Technology Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends NVIDIA. The Motley Fool owns shares of Qualcomm.

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