Yahoo Finance If You Invested $1000 in Marvell Technology a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Marvell Technology (MRVL) ten years ago? It may not have been easy to hold on to MRVL for all that time, but if you did, how much would your investment be worth today?
Marvell Technology's Business In-Depth
With that in mind, let's take a look at Marvell Technology's main business drivers.
California-based Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits. The company operates in Bermuda, China, Germany, Japan, Korea, Taiwan, the United Kingdom, and the United States.
The acquisition of Cavium in July 2018 helped Marvell enhance its product portfolio and access to newer markets. Before the Cavium acquisition, Marvell was mainly known as the leading suppliers of chips for hard disk drives (HDD) used in PCs. Cavium was specialized in offering software compatible processors that enable functionality in data center applications and network connectivity for server and switches.
Therefore, the acquisition helped Marvell expanding its capabilities in the networking market and capture significant market share in the fast-growing data-center space. The strategy also helped Marvell in countering declining chips demand in HDDs due to a weaker PC market. Additionally, the move might put Marvell in a stronger competitive position in the coming years.
Marvell specializes in highly integrated System-on-a-Chip (SoC) and System-in-a-Package (SiP) devices based primarily on ARM designs and sells to both enterprise and consumer customers. It has a significant number of patents in design, software and reference platforms to its credit.
The company’s product line includes application processors, controllers, switches, communications and networking processors and technologies, as well as other SoCs for printers and smart home products. These serve two broad end markets — data center and enterprise networking.
From second-quarter fiscal 2022, Marvell changed its reporting segments from product basis to end market basis. The new reportable end-market business segments are: data center, carrier infrastructure, enterprise networking, consumer and industrial. Data center, carrier infrastructure, enterprise networking, consumer and industrial end markets contributed 41%, 18%, 23%, 12% and 6%, respectively, to the fiscal 2023 total revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Marvell Technology ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $5,342.81, or a 434.28% gain, as of July 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 170.22% and the price of gold went up 41.77% over the same time frame.
Analysts are anticipating more upside for MRVL.
Marvell is benefiting from increasing demand across networking and carrier infrastructure end markets. Strong adoption of 5G has favored Marvell's wireless end-market performance, boosting its overall carrier end-market revenues in the first quarter. Nonetheless, weakening consumer spending amid the rising concern over global recession is also likely to continue hurting the company’s sales across the Consumer segment. Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues, which is likely to hurt Marvell’s overall financial performance in the near-term. Also, Marvell near-term prospect might be impacted by order rescheduling by consumers to manage excess chip inventories. Our estimates suggest that Marvell revenues will decline 8% in fiscal 2024.
Over the past four weeks, shares have rallied 5.46%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
