Marvell Technology, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +45

Marvell Soars 23%, Lumentum Up 23% in a Week. Jim Cramer Says It’s Not “a Broken Stock”

Acquisition Analyst downgrade AI-generated analysis

📈 Marvell Technology shares soared 23% in one week as the AI chip trade revived following CoreWeave's beat-and-raise earnings report.

💰 The company is proceeding with its agreement to acquire Lumentum, a deal that would increase Marvell's total share count by approximately 49%.

📊 Wall Street analysts have continued to raise their revenue and earnings estimates for Marvell right up until the acquisition announcement.

⚠️ Major financial institutions including TD Cowen and BofA downgraded Marvell following the news of the Lumentum acquisition deal.

📉 The stock fell 2.6% on November 12 after reports that Jensen Huang resigned as CEO of NVIDIA, a significant investor in Marvell.

🔮 Analyst consensus projects Marvell's fiscal 2029 EPS to reach $12.68, representing more than four times the fiscal 2026 level.

📉 Marvell currently trades at about 30x forward earnings, which is below its five-year average of 33x.

⏳ The Lumentum acquisition deal is not expected to close until the first half of 2028 pending regulatory reviews including those in China.

Bullish Signals
  • Marvell stock surged 23% in a week as the broader AI chip trade revived following CoreWeave's strong earnings and raised guidance.
  • Analysts have consistently raised their revenue and earnings estimates for Marvell leading up to the Lumentum deal announcement.
  • The proposed acquisition of Lumentum is expected to add significant scale to Marvell's business, increasing its share count by roughly 49%.
Risk Factors
  • Major banks including TD Cowen and BofA downgraded Marvell following the announcement of the Lumentum acquisition deal.
  • The stock dropped 2.6% on November 12 after reports that Jensen Huang resigned as CEO of NVIDIA, a company holding a $2 billion investment in Marvell.
  • The Lumentum deal faces regulatory uncertainty and is not expected to close until the first half of 2028.
Full Analysis
Marvell Technology (MRVL) stock surged 23% in a week, driven by a broader revival in the AI chip trade following CoreWeave's strong third-quarter earnings and raised guidance. This rally occurred despite Marvell trading significantly below its recent highs, with shares down 48% from their June peak, largely due to market concerns surrounding its proposed acquisition of Lumentum. The company is pursuing a major strategic move to acquire Lumentum, which would increase Marvell's share count by approximately 49%. While the deal adds significant scale, it faces regulatory hurdles including reviews in China and is not expected to close until the first half of 2028. Analysts have maintained or raised their earnings estimates for Marvell leading up to this announcement, with consensus EPS projected to reach $12.68 by fiscal 2029. Despite the positive momentum from the AI sector, Marvell faces notable headwinds including a downgrade from major banks like TD Cowen and BofA following the Lumentum deal news. Additionally, the stock experienced a sharp decline on November 12 after reports of Jensen Huang's resignation as NVIDIA CEO, a company where NVIDIA holds a $2 billion investment in Marvell.