ResearchMarvell Chips In

Marvell Chips In

Feb 21, 2024

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


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