4-Star Stocks Poised to Pop: Marvell Technology

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chipmaker Marvell Technology (Nasdaq: MRVL  ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Marvell Technology's business, and see what CAPS investors are saying about the stock right now.

Marvell facts

   

Headquarters (Founded)

Hamilton, Bermuda (1995)

Market Cap

$8.85 billion

Industry

Semiconductors

TTM Revenue

$3.06 billion

Management

Co-Founder/CEO Dr. Sehat Sutardja

Co-Founder/COO Dr. Pantas Sutardja

Compound annual revenue growth (over last three years)

32.4%

Major Competitors

Texas Instruments (NYSE: TXN  )

LSI (NYSE: LSI  )

CAPS members bullish on MRVL also bullish on

Cisco Systems (Nasdaq: CSCO  )

Intel (Nasdaq: INTC  )

CAPS members bearish on MRVL also bearish on

General Motors (NYSE: GM  )

Broadcom (Nasdaq: BRCM  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,014 of 1,074 of the members who have rated Marvell -- some 94% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include jjodoin and doveld.

In March 2007, jjodoin noted that, "Strong demand for consumer devices such as cameras, cell phones, and anything Apple (iPhone, iTV both have [Marvell] chips inside), should fuel above-average growth for Marvell for several years."

A more recent pitch from doveld in May of this year followed that bullish line of thinking, elaborating on Marvell's rather marvelous growth rates:

Marvell chips are used in hard-disk drives, Wi-Fi functional electronics, Internet networking gear and mobile phones, including iPhone and CrackBerry. 1st qtr profits on higher margins rising to 51.6% from 48.4%, improved cost-cutting initiatives and strong product demand. Revenue increased to $804.1 million from $635.1 million.

What do you think about Marvell, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Intel is a Motley Fool Inside Value recommendation. Apple is a Stock Advisor selection. Try any of our Foolish newsletter services, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 28, 2008, at 6:30 PM, eVader7 wrote:

    Marvell makes several "chips" from processors in WiFi APs, GSM communications chipsets found in BlackBerrys and other smartphones and application processors (Intel's XScale StrongARM from acquisition and new Marvell XScale) which are also in many smartphones and PDAs however the iPhone only has a 802.11g wifi chip.

    Apple generally doesn't disclose specifications (Apple fanboys don't care what is under the hood unlike Linux\Windows users) but several tech sites dissected the iPhone and iPhone 3G to discover the app processor is a Apple branded Samsung unit.

    The Apple iTV does however have an Intel processor as well as MacBooks.

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