MRVL — All updates

Next one, plan B, is MRVL. Now this chart isn't too dissimilar to the last one I told you as far as setup is concerned, but right, but you have an additional factor with you.

So, there is this beautiful obviously down sloping trend line, which I've already highlighted on the chart for you. But, the secondary pattern, which you know, I'd argue could be even more powerful, is an inverse head and shoulders pattern.

Left shoulder, head, right shoulder, right? This spells a breakout for me.

Now, for me in Plan B , I'm taking a look here at Marvel, MRVL. So, the same thing. I want you to take a look at the chart and try to identify the gaps, and where Luton might be looking to enter this deal; I'll give you a moment to pause the video and take a look.

Okay, for me right away, remember that we are looking at the bottom of the red zone, 241.45, there will be a clear resistance level there. Why is this gap important ? Why is it meaningful?

Uh we made a call on our alpha report as well this morning that today uh could be a buying opportunity on AMD and Marll and both of these are up uh from the bell.

Nvidia, uh, Marll's moving. AMD is moving. Q's are moving.

and uh Marll, AMD, Nvidia, all pretty green.

Marll's up five.

Marvell and Qualcomm are preparing to capitalize on the growing demand for AI data centers . Marvell assists companies with integrated circuits designed for specific applications, and in connecting these components.

Based on all of the above, which of the two stocks is better to buy now: Qualcomm or Marvell? Looking at the revenue profile, Qualcomm is a much larger company compared to Marvel , with revenues more than four times those of Marvel, at $44 billion versus $ 9.45 billion for Marvel.

Um, honestly, "Credo," "Marvel," you know those, those people. While Avgo and Nvidia are probably the cheapest, even AMD, although more expensive, I'd say a little, let me see the expectations now.

So, if you go to, let me get it quick, if you go to Marvel, I'm at Marvel, and AMD is at 1.58. Marvell has a Profitability Growth Factor (PEG) of 1. Yes. So this is a coefficient of 1.

1.58 is the coefficient for "AMD" . Let's see. "Credo" is approximately 1. "Nvidia" is 0.75. 0.75. This is 1. Then if you go to "Broadcom". " Avgo", "Broadcom", " Broadcom" at 0.93.

Oh, we just did the math . Let me make sure it's still there . We literally just turned it on. 0.9. Yes. correct. So here. So, 0.9 . And now suddenly these men have started to become really cheap.

Like Salesforce, which went from nothing ridiculous, look, Salesforce is still at a coefficient of 0.91, 0.91 as an example. Bath at 0.92, ServiceNow at 153.92. Aya 1.53, I have an intention at.

0.9 , Axon 2.1. 2.19. What did you say about Intuit? I had already forgotten. I don't want to write it incorrectly and then get reprimanded. 0.9. You know, Snow is the anomaly here, isn't he ?

So, Snow is the anomaly in this insane assessment. But it's strange because these companies are making really good money , and they're being punished either because of fear, lack of margins, or because people think the bubble is over.

The only thing I can guess is. You know, when we look at this graph we have here. There is a fear that this shift in programming may not last. So, you know, I think if I look at this, I still like my opinion, and my conclusion is that I still like software right now.

But at some point, devices will become ridiculously cheap , to the point that they will once again become the new opportunity. Hmm, not yet. Perhaps we need an " anthropic retreat".

Good. I mean , Dell is doing well, but you also have the risk of splitting, right? Also, with regard to devices, this is where the risks of division come from. We've talked before about the risk of splitting here, where AI and frontier inference growth slows, while low-margin institutional inference explodes.

This may be what the markets are trying to explore, I don't know. if . My opinion remains that the software is really interesting. Snowflakes are really expensive. At some point, hardware becomes more desirable, but software is great.

I still believe that reaching the bottom in the third and fourth quarters is still possible. And depressions like Balantir are exploitable. In my opinion.

And finally, MRVL. Um, MRVL decent volume, about half of the average volume, which is good compared to the S&P and the Q's, right? Um, but on this stock did have earnings uh last week on Thursday and ended up selling, right?

Sold on Friday, continuing that kind of earnings sell.

and really important that it's coming down into a potential level of support right here. Let me go ahead and delete this. I'll give you two levels of support here on MRVL. First off, there is key uh sideways consolidation in previous support at the psychological level of 200 bucks.

Should it come down there, um I think it does get a bounce at least intraday.

The next company I actually want to take a closer look at is Marvell. Now, Marvell just recently reported earnings, and I thought earnings were great. The stock is down roughly 10%.

Market cap of 190 billion. Year-to-date, the stock is up 142% but from its 52-week high, the stock is down nearly 30%.

Marvell just delivered what I thought to be an excellent quarterly result. The results were so good in fact that the company revised upwards its outlook for the rest of this year and for 2028.

In fact, for the full fiscal year 2027, Marvell now expects revenue to grow approximately 45% to 12 billion. That was up from the previous $11.5 billion estimate. Furthermore, they increased their 2028 revenue outlook to approximately 18 billion and that was up from 16.5 billion just a few months ago.

All right. So, Marvel. Uh next up on Marvel's chart, they did report earnings after the bell, and you can see they did decline pretty nicely, down 9.72% today.

But, if you notice, price has really come into a pause right in this range of consolidation that took place all on top of this yellow trend line that you see here on the chart.

You can see this dated all the way back here to March of 2024. All I did was connect this other previous high pivot in December of 2024, and then I drew that trend line amongst and and all out on my chart.

You have Marll in a draw down. Both of those companies have just been reporting some of the greatest news and contracts and earnings any of us will ever see, but that was already priced in six months prior.

Marll is coming on very strong. Broadcom is coming on very strong. He's comp Let's take Marll. Marll is building custom AS6 for customer. Amazon's their biggest customer. So Amazon's building tranium chips which are application specific integrated circuits.

They do not have as broad of a use as a GPU. They're not as powerful. They're not clustered the same way. you know, you take a take a take a cluster of 10,000 chips and and put them in.

It's not the way that's being done. But Amazon its tranium line of chips, Alphabet's making chips, Microsoft is making chips, Meta, Apple is making its own chips. They're they're utilizing application specific integrated circuits.

And that custom chip making for the hyperscalers is coming out of Marll. This doesn't mean Amazon's not buying GPUs. doesn't mean uh Gemini is running without GPUs, but it is new competition for the buildout of compute.

Why would they want to use AS6? Well, if they build them themselves, they can customize them for exactly the uses within their data centers that they see as being important. Okay, so that's what Marll is doing.

Marvell is also reporting tomorrow, expecting a very juicy return.

another one that's earning on Thursday is Marvel. But speaking of the choke points and bottlenecks, memory is a big one and Marvel VP is pushing for DDR4 type of memory for recycling for use in their CXL memory because they are experiencing the worst DRAM shortage ever.

And they're focusing on all sorts of creative ways to fix that bottleneck as well.

But these ASIC producers, so think Marll and think Broadcom. Uh Broadcom has better margins than Marll, but uh Marll has a better balance sheet than Broadcom. Marll is also a $200 11 billion company.

It's up about 5.6%. I've got exposure to Marll. I don't have exposure to Broadcom, but I really like Broad. Like I'm really tempted by it right now. $1.7 trillion company.