This tech company just completed the acquisition of Inphi Corporation, and our contributor says this purchase will turn Marvell into a U.S. semiconductor powerhouse positioned for end-to-end technology leadership in data infrastructure.
Marvell Technology, Inc. (MRVL)
From Cabot Explorer
Marvell Technology Group shares were flat this week after the company announced last week the completion of its acquisition of Inphi Corporation. The combination creates a U.S. semiconductor powerhouse positioned for end-to-end technology leadership in data infrastructure. Marvell designs, develops, and sells a wide variety of semiconductor products that are at the core of 5G-capabable networks. The company’s processors and products are cutting-edge and already generate $3 billion in annual sales.
Marvell’s markets include drones, data integration and consumer and industrial robotics. These are all huge markets giving Marvell an opportunity to post double-digit growth in both sales and net profit in 2021. Despite these high-growth markets, the stock is trading at a reasonable 22 times earnings. I suggest we take advantage of the pullback in tech stocks to begin with a half position. BUY A HALF
Carl Delfeld, Cabot Explorer, cabotwealth.com, 978-745-5532, April 29, 2021