Marvell Stock Rises In Premarket After 4% Drop; Retail Traders Speculate A SoftBank Takeover
Synopsis
The recent AI sell-off has not spared Marvell shares, making the valuation of the chipmaker even more attractive.
- Marvel stock has underperformed the broader tech sector and the semiconductor industry this year.
- SoftBank was reportedly interested in buying the chipmaker as part of its AI thrust.
- The next significant catalyst for Marvell is the company’s earnings scheduled for Dec. 2.
Marvell Technology, Inc. (MRVL) stock appears on track to rebound from Tuesday’s 4%+ pullback amid the negativity toward the broader tech sector, especially those exposed to artificial intelligence (AI).
In Wednesday’s early premarket trading, Marvell’s stock climbed 1.62%, potentially in sympathy move with AMD (AMD), which has seen a sharp move to the upside following the company’s Financial Analysts’ Day held on Tuesday.
Marvel’s Attractive Valuation
Marvell stock has lost about 19% this year, underperforming the Invesco QQQ Trust (QQQ) ETF (up 22%) and the iShares Semiconductor ETF (SOXX) (+38%).
The forward price-earnings (P/E) multiple of Marvel is 29 times, aligning with the valuation multiple of the QQQ ETF, which tracks an index comprising the 100 largest non-financial tech stocks. The average analysts’ price target for Marvel stock is $90.07, according to Koyfin, implying less than a percent upside from Tuesday’s closing price.
Last week, the stock received a boost from a Bloomberg report stating that Masayoshi Son-led SoftBank had considered acquiring the chipmaker multiple times in the past, based on the belief that the AI boom would benefit the company’s hardware.
What Retail’s Saying About Marvell Stock
On Stocktwits, retail sentiment toward Marvell stock stayed ‘bullish’ as of early Wednesday. The message volume on the stream also remained ‘high.
A bullish user shared a chart of Marvell that showed a bullish signal. “The recent high of $98.13 provides a resistance level, while the low of $61.44 establishes a solid support base,” they said.
A few watchers also hoped for a SoftBank takeover, now that Son’s company has exited Nvidia.
The next significant catalyst for Marvell is the company’s earnings scheduled for Dec. 2.
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