Company Overview - Marvell Technology (MRVL) shares increased by 21.9% to close at $60.96, following a broader market rally after US President Donald Trump's announcement to pause reciprocal tariffs for 90 days, although a baseline tariff of 10% on imports remains in effect [1] - The stock had previously experienced a 25.5% loss over the past four weeks [1] Earnings Expectations - Marvell is expected to report quarterly earnings of $0.61 per share, reflecting a year-over-year increase of 154.2% [2] - Revenue projections stand at $1.88 billion, which is a 61.6% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Marvell has been revised slightly higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting favorable market sentiment [3] Industry Context - Marvell is part of the Zacks Electronics - Semiconductors industry, which includes other companies like indie Semiconductor, Inc. (INDI) [3] - INDI shares rose by 20.2% to close at $2, but have seen a decline of 35.7% over the past month [3] - For indie Semiconductor, the consensus EPS estimate remains unchanged at -$0.08, representing a 20% improvement from the previous year [4]

Core Insights - U.S. stock markets have experienced extreme volatility due to the imposition of "Liberation Day" tariffs, with AI infrastructure stocks showing significant valuation potential [1][3][4] Group 1: Market Volatility - The Dow fell over 4,500 points and the Nasdaq Composite dropped 13% from April 3-8, entering bear market territory [3] - The S&P 500 declined more than 12% and approached a bear market, closing below 5,000 for the first time since April 2024 [4] - Following a tariff rate restriction to 10% for most trading partners, the S&P 500 surged 9.5%, marking its third-largest single-day rally since World War II [5] Group 2: AI Infrastructure Stocks - Five AI infrastructure stocks with favorable Zacks Rank include NVIDIA Corp. (NVDA), Broadcom Inc. (AVGO), Marvell Technology Inc. (MRVL), Jabil Inc. (JBL), and Super Micro Computer Inc. (SMCI) [2][7] - These stocks have strong short-term and long-term revenue and earnings growth potential, with positive earnings estimate revisions in the last 30 days [7] Group 3: NVIDIA Corp. (NVDA) - NVIDIA is the leader in generative AI-powered GPUs, with over 1.3 million Hopper GPUs and 3.6 million Blackwell GPUs sold [8] - Upcoming products include Blackwell Ultra in 2025 and Vera Rubin in 2026, with a shift towards reasoning AI models expected to enhance revenue generation [9][10] - Expected revenue and earnings growth rates for the current year are 52.1% and 47.5%, respectively, with a Zacks Consensus Estimate improvement of 0.5% [11] Group 4: Broadcom Inc. (AVGO) - Broadcom's AI revenues surged 220% to $12.2 billion in fiscal 2024, representing 41% of semiconductor revenues [13] - The company is set to ship next-generation XPUs in 3 nanometers to hyperscale customers by the second half of fiscal 2025 [14] - Expected revenue and earnings growth rates for the current year are 21% and 35.5%, respectively, with a Zacks Consensus Estimate improvement of 0.6% [16] Group 5: Marvell Technology Inc. (MRVL) - Marvell's data center revenues increased 98% year-over-year, driven by AI demand for PAM products and ZR electro-optics [20] - Expected revenue and earnings growth rates for the current year are 43.8% and 75.8%, respectively, with a Zacks Consensus Estimate improvement of 0.4% [22] Group 6: Jabil Inc. (JBL) - Jabil benefits from momentum in AI-powered data center infrastructure and has a focus on product diversification [25] - Expected revenue and earnings growth rates for the current year are -3.4% and 5.5%, respectively, with a Zacks Consensus Estimate improvement of 2.1% [27] Group 7: Super Micro Computer Inc. (SMCI) - Super Micro provides IT solutions for AI/ML and cloud technologies, with a focus on NVDA's high-performance GPUs [31] - Expected revenue and earnings growth rates for the current year are 59.2% and 15.4%, respectively, with a Zacks Consensus Estimate remaining unchanged [34]

Core Viewpoint - The article emphasizes the rising importance of Digital Signal Processors (DSPs) in reshaping the future of optical communication, particularly in the context of AI-driven data centers and the transition from 100G to higher bandwidths like 1.6T [1][3]. Group 1: Importance of DSPs - DSPs are critical components in modern optical networks, converting analog signals to digital and encoding data for high-speed transmission using advanced modulation techniques [3]. - The demand for PAM4 DSPs is significantly increasing due to the construction of AI infrastructure, with projections indicating that the market for PAM4 and coherent DSPs will exceed $4 billion, maintaining a strong CAGR [3][19]. Group 2: Market Leaders - Marvell is a dual champion in the PAM4 and coherent DSP fields, benefiting from its strategic acquisition of Inphi, which expanded its product offerings in high-speed connectivity [5][7]. - Broadcom holds a strong market position in PAM4 DSPs, known for its low power consumption and high performance, particularly in AI clusters and large-scale data centers [11][12]. - Credo, established in 2008, is recognized for its low-power, high-cost-performance PAM4 DSPs, covering a range from 50G to 1.6T [12][13]. Group 3: Emerging Players - Alphawave Semi has transitioned from being known for high-speed SerDes IP to becoming a silicon product supplier, targeting high-speed PAM4 and coherent DSP markets with its 3nm technology [14]. - Retym, founded in 2021, focuses on programmable coherent DSP solutions for cloud and AI infrastructure, aiming to disrupt traditional suppliers with its innovative designs [17][18]. Group 4: Trends and Observations - The article notes that the connection bottleneck is becoming a core constraint in AI systems, highlighting the increasing significance of DSPs [19]. - There is a trend towards energy optimization in DSPs, with advanced process nodes like 3nm showing significant power advantages in 800G/1.6T modules [19]. - The future of DSP products is expected to integrate various functionalities, moving away from traditional discrete solutions [19]. - The competitive landscape is shifting, with traditional players facing complex relationships with customers, while new entrants like Retym and Alphawave promote open collaboration [19].

Group 1: Apple and Nvidia Developments - Apple has transported five cargo planes filled with iPhones from India to the U.S. between March 27 and 29 to avoid tariffs, with a potential loss of $8 million per day for delays [2] - Apple currently holds over $15 billion worth of iPhone inventory in the U.S., which is three times the sales volume in the last quarter of the previous year [2] - Nvidia has acquired Lepton AI, founded by a former Alibaba executive, for several hundred million dollars, enhancing its AI infrastructure capabilities [2] Group 2: AI and Automotive Innovations - A report from Stanford University indicates that the performance gap between U.S. and Chinese AI models has nearly closed, with significant advancements in AI systems and benchmarks [3] - Amazon's Zoox is set to test autonomous vehicles in Los Angeles, expanding its testing operations beyond several U.S. cities [3] - Leapmotor and Hesai Technology have entered a strategic partnership, with plans to procure approximately 200,000 units of Hesai's ATX LiDAR for future vehicle models [5] Group 3: Semiconductor and Robotics Developments - Silan Microelectronics is accelerating its SiC chip technology development, achieving a monthly production capacity of 9,000 6-inch SiC MOS chips [7] - Zhongwei Company has signed a project for a micro-processing equipment R&D center in Nanchang, focusing on third-generation semiconductor devices [8] - Infineon Technologies announced the acquisition of Marvell's automotive Ethernet business for $2.5 billion to enhance its software-defined vehicle capabilities [8] Group 4: Corporate Restructuring and Acquisitions - Deep Kangjia A is planning a professional integration with another state-owned enterprise, which may lead to a change in its controlling shareholder [9] - Chenghe Technology is planning to acquire at least 51% of Yingri Technology, with an estimated valuation of 1.8 billion RMB for the entire company [9]

| SYMBOL # | NAME $ | PRICE + | CHANGE # | 9 | | --- | --- | --- | --- | --- | | MRVL | Marvell Technology Inc | 54.81 | +3.81 | | | PLTR | Palantir Technologies Inc | 83.62 | +5.78 | | | AVGO | Broadcom Inc | 165.43 | +11.29 | | | CRWD | CrowdStrike Holdings Inc | 343.57 | +19.2 | | | MELI | MercadoLibre Inc | 1,897.37 | +102.63 | | | APP | Applovin Corp | 244.96 | +12.74 | | | ARM | Arm Holdings PLC | 93.43 | +4.8 | | | NVDA | NVIDIA Corp | 102.84 | +5.19 | | | KLAC | KLA Corp | 635.5 | +30.88 | | | AMAT ...

Core Viewpoint - Marvell Technology Inc is experiencing a significant stock price increase of 8.4% to $55.27 following the announcement of selling its automotive ethernet business to Infineon Technologies for $2.5 billion in cash [1] Group 1: Stock Performance - The stock is on track for its largest single-day percentage gain since December, despite a year-to-date deficit of 50.7% [1] - The stock price is recovering from a 52-week low of $47.09, facing long-term overhead pressure from the 20-day moving average [1] Group 2: Options Activity - The 10-day put/call volume ratio for the stock is in the 92nd percentile of annual readings, indicating a higher level of bearish sentiment among options traders [2] - Today's options activity shows that 25,000 puts have been traded, which is five times the typical volume for this time [3] - The most popular options contract is the weekly 5/2 55-strike put, with new positions being opened at the September 45 put [3]

Marvell Technology Inc MRVL is making a clean break from its automotive ambitions, and JPMorgan's Harlan Sur thinks that's exactly the kind of focus investors should be betting on.Following the company's $2.5 billion sale of its Automotive Ethernet business to Infineon Technologies AG, Sur reiterated an Overweight rating and placed a $130 price target by December 2025, implying a 155% upside from Friday's close at $51.AI Gets The Green LightWhile growing fast, the automotive Ethernet business isn't expected ...

Core Viewpoint - Infineon Technologies AG is acquiring Marvell Technology's Automotive Ethernet business for US$2.5 billion to enhance its capabilities in software-defined vehicles and expand its market-leading microcontroller business [1][7]. Group 1: Acquisition Details - The acquisition price is set at US$2.5 billion in cash, and the transaction is subject to regulatory approvals [1][5]. - Marvell's Automotive Ethernet business is expected to generate revenue of US$225 – US$250 million in the 2025 calendar year with a gross margin of around 60% [3][7]. - The acquisition will be financed through existing liquidity and additional debt, with financing secured from banks [5][7]. Group 2: Strategic Fit and Market Position - The acquisition is described as a strategic fit for Infineon, enhancing its position as the global leader in semiconductor solutions for the automotive industry [2][7]. - Infineon aims to leverage Marvell's Ethernet technology to provide comprehensive solutions for software-defined vehicles, including advanced driver-assistance systems and autonomous driving [2][4]. - The deal is expected to create additional growth opportunities in adjacent fields such as humanoid robots and IoT applications [2][7]. Group 3: Customer Base and Future Growth - Marvell's Automotive Ethernet business has established relationships with over 50 automotive manufacturers, including eight of the ten leading OEMs, supported by a design-win pipeline of around US$4 billion until 2030 [3][7]. - The combination of Marvell's technology with Infineon's AURIX™ microcontroller family is anticipated to enhance product offerings in communications and real-time control [4][7]. - The acquisition is expected to yield additional cost synergies through combined R&D efforts and leveraging Infineon's production capabilities [3][7].

Core Viewpoint - Marvell Technology, Inc. has agreed to sell its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion, which is expected to generate revenue of $225-250 million in fiscal 2026, marking a strategic move to enhance shareholder value [1][2]. Group 1: Acquisition Details - The acquisition of Marvell's Automotive Ethernet business is valued at $2.5 billion and includes the Brightlane® Automotive Ethernet portfolio and related assets [1]. - The transaction has been approved by Marvell's Board of Directors and is anticipated to close within the calendar year 2025, pending customary closing conditions and regulatory approvals [1]. Group 2: Financial Performance - Marvell's data center end market accounted for 75% of consolidated revenue in the fiscal fourth quarter of 2025, highlighting the company's strong position in data infrastructure solutions [2]. - The Automotive Ethernet business is projected to generate revenue between $225 million and $250 million in fiscal 2026, indicating its growth potential [1]. Group 3: Strategic Positioning - Marvell's CEO expressed confidence that the transaction provides the strongest financial return for shareholders, emphasizing the compelling valuation of the Automotive Ethernet business [2]. - The acquisition is expected to position the Automotive Ethernet business for continued growth and success under Infineon's optimized platform for automotive applications [2].

Core Viewpoint - Micron Technology and Marvell Technology are both positioned to benefit from the AI infrastructure boom, but they operate in different segments of the semiconductor market, with Micron focusing on memory technologies and Marvell on custom silicon and data center connectivity [1][2]. Group 1: Micron Technology - Micron is experiencing strong demand for high-bandwidth memory (HBM) and DRAM products due to the surge in AI workloads, with its HBM3E products noted for their power efficiency and bandwidth [3]. - In January 2025, NVIDIA announced Micron as a key supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing Micron's role in the HBM market [4]. - Micron's second quarter of fiscal 2025 saw a decline in non-GAAP gross margin to 37.9%, down from 39.5% in the previous quarter, attributed to weaker NAND flash pricing and startup costs at a new DRAM facility [5]. - For the third quarter, Micron guided a gross margin of 36.5%, indicating ongoing margin pressures despite record sales in its HBM segment [6]. - The Zacks Consensus Estimate for Micron's 2025 sales and EPS suggests year-over-year growth of 41.9% and 426.9%, respectively, but EPS estimates have been volatile over the past 60 days [16]. Group 2: Marvell Technology - Marvell is capitalizing on the increasing demand for custom silicon from hyperscalers, exceeding its fiscal 2025 AI revenue target of $1.5 billion and expecting to surpass $2.5 billion in fiscal 2026 [7]. - The company reported a 27% year-over-year increase in total revenues and a 30% rise in non-GAAP EPS for the fourth quarter of fiscal 2025 [8]. - Marvell's non-GAAP gross margin has remained above 60% for several years, with a forecast of 60% for the first quarter of fiscal 2026, indicating strong operational efficiency [11]. - The Zacks Consensus Estimate for Marvell's 2026 sales and EPS implies a year-over-year increase of 43.8% and 75.8%, respectively, with consistent upward revisions over the past 60 days [20]. Group 3: Stock Performance and Valuation - Over the past year, Micron shares have decreased by 47.4%, compared to a 31.3% decline in Marvell shares [13]. - Micron is trading at a forward earnings multiple of 1.71X, significantly below its three-year median of 3.22X, while Marvell's forward sales multiple is at 4.99X, lower than its median of 8.20X [14]. - Marvell's premium valuation reflects high growth expectations and robust profitability, while Micron's declining profitability raises concerns about its ability to leverage the AI market [15].