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Marvell Technology (MRVL)

Marvell Technology (MRVL)

Semiconductor company Marvell Technology should be on your radar if you’re looking to invest in the ongoing rollout of 5G networks globally. Marvell Technology is a fabless semiconductor company that is a global provider of silicon solutions for data storage, communications, and consumer markets.

Suppose you aren’t familiar with fabless semi companies. In that case, they outsource most of their semiconductor fabrication to third-party foundries, saving them a ton of money because they don’t have to own and maintain a fab. This allows Marvell to invest more money into developing new products instead of spending big on manufacturing.

 Marvell saw significant gains over much of 2020, returning an incredible 79 percent for the year like much of the tech sector. And 2021 has also started for MRVL similarly to many tech names, showing early strength in January and February and then dropping off over the ensuing months. Marvell is now down four percent year-to-date.

Marvell posted its fiscal fourth quarter and full-year 2021 financials in March, showing net revenue for the Q4 of $798 million compared to $750 million a year earlier and net income of $16.5 million compared to a loss of $22.9 million for the fourth quarter 2020.

Marvell’s 2020 calendar year had kinks in it due to the pandemic’s effect on its business. However, the company still managed to increase revenue, topping out at $2.969 billion for its fiscal 2021, up from $2.699 billion in fiscal 2020. Net income was a loss of $277 million versus $1.584 billion a year earlier.

There’s a lot to like about Marvell’s growth prospects at this time, given the rise of 5G networks, data center spending, and the company’s recently completed acquisition of Inphi Corporation. The investment will help to expand Marvell’s reach in data centers and 5G network infrastructure, which are areas that are quite attractive to long-term investors. This stock offers a 0.54% dividend yield and recently reclaimed the 200-day moving average, a sign that institutional money could be starting to flow back in.

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