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

We came across a bullish thesis on Marvell Technology, Inc. on CopyCat Invest’s Substack. In this article, we will summarize the bulls’ thesis on MRVL. Marvell Technology, Inc.’s share was trading at $83.62 as of January 28th. MRVL’s trailing and forward P/E were 29.20 and 23.09, respectively according to Yahoo Finance.

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. MRVL has come under renewed pressure following a sharp selloff driven by what management and long-term investors view as persistent misinformation, creating an attractive opportunity at current levels. Despite the stock trading below its pre–third-quarter earnings price, the company delivered solid 3Q results, issued constructive 4Q guidance, and provided strong commentary on its outlook for the coming year.

Management expects earnings growth to remain robust, with next year’s EPS estimates at approximately 3.55, representing roughly 25% growth over the current year estimate of 2.84, even as the current fiscal year concludes in less than two months. At around 25x forward earnings, MRVL now trades at a materially lower valuation than in prior periods, when it commanded nearly 60x trailing EPS at similar share prices, signaling a rapid shift from a premium to a discount valuation profile.

The stock’s volatility has been exacerbated by its popularity among short-term volatility traders and recurring speculation around potential custom ASIC socket losses at large customers such as Amazon and Microsoft. Marvell has consistently refuted these claims, characterizing them as baseless and reaffirming confidence in its long-term customer roadmaps. Importantly, the custom ASIC business, while strategically important, represents only about 25% of the company’s broader data center exposure, limiting the potential impact of any isolated customer changes. Meanwhile, Marvell’s networking segment continues to deliver strong results and remains a critical growth engine within the data center market.

Given management’s tone and operational momentum, expectations are that earnings estimates could trend higher over time as confidence rebuilds. While the path forward may remain uneven, Marvell Technology’s combination of solid fundamentals, improving growth visibility, and a significantly compressed valuation presents a compelling risk-reward setup for patient 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-led growth, expanding custom ASIC opportunity, and improving earnings outlook. MRVL’s stock price has depreciated by approximately 27.41% since our coverage due to a sharp selloff driven by volatility trading and misinformation around customer socket losses. CopyCat Invest shares a similar view but emphasizes valuation compression and near-term sentiment dislocation as the key opportunity.

Marvell Technology, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held MRVL at the end of the third quarter which was 76 in the previous quarter. While we acknowledge the risk and potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRVL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.