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How Is Marvell Looking to Fuel Its Growth Going Forward?

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Dec. 4 2020, Updated 10:52 a.m. ET

Marvell prepares to report past earnings

In the previous part of this series, we saw that Starboard Value acquired a 6.7% stake in Marvell Technology (MRVL), renewing optimism among investors and making the chipmaker a possible acquisition target.

Marvell hasn’t reported earnings for the past three quarters due to the internal audit of its earnings. As the issue has now been resolved, the company is working on releasing its pending earnings for fiscals 2Q16, 3Q16, and 4Q16 as soon as possible.

This delay has built pressure on MRVL to increase its revenue. Over the past two months, the company has launched new products to boost its sales.

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New microcontrollers for data center and IoT

  • Marvell announced the 88RC13xx family of high-performance RAID (redundant array of independent discs) storage controllers designed for cloud infrastructure, enterprise storage arrays, and entry- to mid-range servers.
  • It announced the ARM CortexA7-based Armada 7000 and Armada 8000 SoCs (system-on-chip) for networking developers.
  • It also announced the IAP220 SoC for a range of IoT (Internet of Things) applications such as home automation, industrials, and wearables. This SoC is powered by an ARM CortexA7 dual core processor that enables the SOC to adjust its power and computing performance depending on the IoT product.

With these new products, Marvell joins Qualcomm (QCOM), Advanced Micro Devices (AMD), Cavium, and others who supply ARM-based processors for data centers. ARM Holdings (ARMH) licenses its chip designs to semiconductor companies in return for a fee.

New wireless connectivity devices

  • Marvell announced advanced Avastar wireless connectivity devices 88W8887, 88W8997, and 88W8977, which can now enable its DMHR (dynamic multi-hop relay) technology. This will ensure uninterrupted multimedia and cloud services both in infrastructure and peer-to-peer configurations.
  • It announced the Prestera 98DX325x 2.5 GbE (gigabit Ethernet) campus programmable switch and the 98DX83xx 10 GbE campus aggregation switch for storage aggregation and server connectivity in the private cloud.
  • It announced the Alaska 88E2010/40, the industry’s first commercially available Ethernet transceivers, for 2.5 Gbps (gigabytes per second) and 5 Gbps data rates.

Marvell is currently sampling the above products with customers worldwide. Its new product portfolio is expected to increase its revenue in fiscal 2017. As we come to the end of this series, let’s look at the performance of Marvell’s stock over the past 52 weeks and what factors could drive its price going forward.

The PowerShares QQQ Trust, Series 1 ETF (QQQ) has holdings in technology stocks, including 8.7% holdings in semiconductor stocks. It has 1.5% exposure to QCOM.

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