Marvell Chips In

On Wednesday, we initiated a new position in Marvell Technologies (MRVL) on behalf of clients in our Offshore strategy. 

Marvell is an AI beneficiary, yet has somewhat lagged other semiconductor peers given the weakness in other networking end markets. We believe Marvell has been unfairly punished and took the opportunity to initiate a 4% position in the stock.

Let’s dive in.

Marvell is a leading fabless semiconductor company that provides data infrastructure solutions with a focus on the data center and network edge. 

Reminder: A fabless semiconductor provider is responsible for the design and sale of hardware solutions and semiconductor devices while outsourcing their fabrication to a specialized manufacturer (a “foundry” or “fab”). This allows the company to operate an asset-light business model and focus on its core competency: designing chips. 

You can see exactly where Marvell sits in the ‘value chain’ below:

Marvell is an AI beneficiary, yet has somewhat lagged other semiconductor peers given the weakness in its other end markets. The market is still worried about i) weakness in the enterprise networking and communications infrastructure segments and ii) lack of visibility into its Custom Silicon business / potentially losing a large customer contract (think: Big Tech).

We believe fears appear overblown and that expectations for data center revenue in calendar 2024 are far too low. The current setup provides a very favorable entry point as we expect data center and AI revenue will continue to grow alongside its other segments that should be bottoming and inflecting back to growth.

The results of the trades increased our net exposure, as we used our strategic cash reserve as the source of funds. 

As always, let us know if you have any questions about the recent trades; we’re happy to assist.

– Your Titan Team

Disclosures:

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Please refer to Titan's Program Brochure for important additional information. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. Contact Titan at support@titan.com.

Trade communications are meant for informational purposes only. Statements made in these communications represent opinions and conjecture, and should not be construed as a guarantee of future results. Communications may contain forward-looking statements, which reflect our current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. 

References to specific stock performances are provided for historical context and are not indicative of future results. Please note that any mention of gains or losses in our trade communications reflects those at the strategy level. Actual gains or losses realized in individual client accounts may vary based on factors such as the timing of individual trades, new or recurring deposits, and the specific cost basis for each holding in a client's account. As such, the figures presented may not represent the actual gains or losses experienced by any individual client. Valuation assessments in our communications are based on internal analysis and are for informational purposes only. They should not be the sole basis for investment decisions and may differ from others' views or assessments. No warranty is made regarding their accuracy or completeness.

All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. There is always the potential of losing money. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. The rate of return on investments can vary widely over time, especially for long term investments. Past performance is no guarantee of future results. 

There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. This is not an offer, solicitation of an offer, or advice to buy or sell securities, or any other product offered by Titan or any third party.

The content provided in this email is for informational purposes only and is not investment or financial advice, tax or legal advice, an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Please visit www.titan.com/legal for important disclosures.