The last few months have been kind to many chip stocks, with Maxim (MXIM), Marvell (MRVL), and Nvidia (NVDA)
all logging double-digit returns. Marvell's run actually goes quite a
bit further back, as the shares have more than doubled from their late
2012 lows. As Marvell has grown share in the hard drive controller space
and announced LTE wins in China, investors have returned to the shares
despite worries about a looming patent infringement award and the
prospects of competing with Qualcomm (QCOM).
The
sell-side seems to be getting more cautious about suppliers to the
high-end smartphone market, but that's not really Marvell's core market.
Although I own and prefer Broadcom (BRCM),
Marvell may be undervalued enough to be worth a closer look even after
this long run. Most chip stocks are bought to be sold, though, so
investors shouldn't assume that this is a buy-and-forget opportunity.
Follow this link for more:
Marvell Shares May Not Be Done Yet
No comments:
Post a Comment