Is Marvell Stock a Buy on the Dip as AI Revenue Soars?
Marvell shares fell despite strong fiscal Q2 results.
Overview
Shares of Marvell Technology (NASDAQ: MRVL) declined despite the company once again reporting strong data center and artificial intelligence (AI) revenue growth when it released its fiscal second-quarter earnings on Aug. 27. However, the stock is still up more than 150% year to date as of this writing.
Let's dive into the semiconductor company's latest results and prospects to see if this dip is a buying opportunity.
Details
Marvell has been a big beneficiary of the AI infrastructure build-out with both its connectivity and custom chip businesses. The company is a leader in optical DSP (digital signal processing) chips, which convert electrical data into optical signals for faster data transmission within data centers. This business is growing quickly as AI data centers move away from copper wiring to optical networks. It also has strong positions in broadband analog components and scale-out switching. It sees each of these businesses moving toward a $1 billion annual revenue run rate.
Source
Originally published at www.fool.com.