Marvell: Jensen Says $1 Trillion; I Disagree

James Foord Investing Group Leader Follow Summary Marvell Technology is positioned as a key player in data center connectivity and custom silicon, with recent Nvidia endorsement and strategic developments. MRVL's innovative memory architecture—spanning SSD controllers, pooled memory, and photonic modules—could disrupt traditional memory economics and drive future growth. Despite a recent 30% pullback, I rate MRVL a Buy ahead of earnings, citing strong sequential growth guidance and potential upside from new custom silicon customers. Valuation remains rich at 55x forward earnings, but MRVL's growth trajectory and architectural shifts justify a premium, though a $1T valuation is not imminent. Looking for more investing ideas like this one? Get them exclusively at The Pragmatic Investor. Learn More » PM Images/DigitalVision via Getty Images Thesis Summary On June 2nd at Computex, Jensen Huang told investors that Marvell ( MRVL ) could be “the next trillion-dollar company. ” The stock rallied 32.5% following this, the biggest one-day move in Marvell's history. Huang's argument was about connectivity, which could be This article was written by James Foord 29.44K Followers Follow James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of MRVL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.