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Posted by
Two Blokes Jun 5 -
Filed in
Stock
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2 views
Marvell Technology, Inc. is relatively cheap, but not worth buying at current levels; we maintain Sell rating on the stock. Street expectations for Marvell's AI revenue growth are unrealistically high for 40% Y/Y growth and scaling its custom AI ASIC business will come at cost of margins. Gross margins are under pressure due to the expansion of the lower-margin ASIC business, and its other two recovering segments are not strong enough to offset this contraction.
