In downturns semiconductor investors often seek out and reward margins,
while growth is more desirable when the cycle turns. I’m speaking in
broad generalities of course, but I think that may be a useful way to
look at Marvell (MRVL),
as the shares of this networking and storage chip company seem pricey
on the basis of margins and cash flows, but do seem poised to deliver
well above average revenue growth over the next three to five years.
Although I’d don’t really like Marvell at this price on a “core holding”
basis, I can understand the appeal for growth/momentum investors who
are less sensitive to valuation concerns.
Please continue here:
Marvell Has The Growth Story, But Valuation Seems Advanced
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