Marvell Technology Group (MRVL 2.21%) has been having a tough time on the stock market so far this year. Thanks to the sell-off in tech stocks that has sent the broader market into a tailspin, the chipmaker has failed to carry over its impressive 2020 momentum into 2021 even though its business has stepped on the gas.

MRVL Chart

MRVL data by YCharts

But investors looking to buy a 5G and cloud computing play on the cheap shouldn't miss this opportunity as Marvell has a lot going for it, and the company's latest earnings report sparked optimism. Let's take a look.

Person holding a 5G smartphone

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Marvell Technology Group is about to get better this year

Marvell had a solid fiscal 2021, which ended in late January, with its revenue growing 10% over the prior year to $2.97 billion. Adjusted net income jumped a whopping 41% to $627.4 million. Marvell's results exceeded its own expectations for the fiscal fourth quarter, with the company's revenue of $798 million landing $13 million ahead of the midpoint of its guidance thanks to a strong showing in the networking business.

Marvell management pointed out on the latest earnings conference call that the company's "growth initiatives in 5G, cloud, and automotive drove results in these key end markets, which, collectively, more than doubled in revenue from the prior year to represent more than 25% of fiscal-year 2021 revenue."

These markets are about to drive stronger growth for Marvell, as evident from the chipmaker's guidance for the current quarter. Marvell expects $800 million in revenue this quarter at the midpoint of its guidance, which would translate into a 15% year-over-year increase. What's more, Marvell expects its non-GAAP gross margin to increase 700 basis points to 63.5% this quarter.

The improved margin profile and higher revenue will push Marvell's adjusted earnings to $0.27 per share at the midpoint of its guidance, up from the year-ago period's adjusted net income of $0.18 per share. For comparison, Marvell delivered 11% year-over-year revenue growth last quarter.

This acceleration in Marvell's growth isn't surprising as the markets it operates in are expected to get better in 2021. Marvell's 5G revenue, for instance, has grown sequentially for six quarters in a row, and the momentum looks all set to continue thanks to new deployments and customer ramps.

Fujitsu, for instance, will be deploying Marvell's baseband processors in 5G base stations. Samsung and Nokia are the other key companies playing a crucial role in driving Marvell's 5G business higher. For instance, the chipmaker says that it has won "additional content" at Nokia that will add to the existing production ramp at that customer.

These 5G base station wins are great news for Marvell Technology and the demand for these chips can keep growing at a tremendous pace in the long run as the global base station market is expected to clock a compound annual growth rate of 32% through 2028.

Meanwhile, Marvell's automotive business is also stepping on the gas thanks to the growing usage of Ethernet connectivity in vehicles. The segment's revenue "crossed into the double-digit million run rate" last quarter, according to management, and things are expected to get much better this year on the back of new design wins and content expansion at existing OEMs (original equipment manufacturers). In fact, the chipmaker expects fiscal 2022 to be a "breakout year for this business."

Don't miss this buying opportunity

Marvell Technology's networking business is on a roll. The segment accounted for 55% of the company's business last quarter and its revenue increased 24% year over year, after accounting for the divestment of the Wi-Fi business that was sold in December 2019. This business could keep getting better this fiscal year as Marvell's existing catalysts become stronger and new ones -- such as the automotive ramp -- join the fray.

Not surprisingly, analysts expect Marvell's revenue to grow a high-teen percentage this year. That would be a big improvement over last year's growth, and also give the company's bottom line a nice boost. In fact, the chipmaker's earnings are expected to clock impressive growth over the next couple of years.

MRVL EPS Estimates for Current Fiscal Year Chart

MRVL EPS Estimates for Current Fiscal Year data by YCharts

All of this makes Marvell Technology worth buying right now, especially considering that it looks like a value pick that is trading at just over 20 times trailing earnings.