Marvell (MRVL) is a semiconductor company who currently makes chips and has alternative reach in automotive vehicles, custom ASIC chips, ARM processors, Ethernet adapters and controllers, fibre channels, PHYs transceivers, server processors, storage systems and more.
At the beginning of this year, Marvell announced an extended partnership with Samsung for global 5G deployment. With Samsung’s extension Marvell’s groundbreaking 5G ready technology also caught Microsoft with the deployment of ThunderX2 for Azure development which will allow Microsoft to enable ARM based servers for internal workloads.
Now, analysts are very bullish on this stock with J.P. Morgan raising the targeted price point to $31 and Rosenblatt gaining confidence with a price target of $32.
Marvell (MRVL) Future 5G Breakthrough
While analysts and investors seem bullish, the stock is still fairly undervalued right now with the predicted rise of 5G demand in 2020 through out 2022. Samsung’s currently claims to 5G market domination of 74% and rising with expected 5G phone sales of 1.6 million for the Galaxy Note Plus 5G.
The current average selling price of a 5G device is $994 however this is still three times higher than the average cost of a smartphone. However this will come down over time as manufacturers look to expand their share and component makers target other segments.
The launch of 5G in China, the world’s biggest mobile market, will accelerate this shift.
In total, 13.5 million 5G handsets are expected to have been sold by the end of 2019, increasing to 253 million next year.
While it’s hard finding sleeping giants like this, there’s an opportunity open right now that you can not afford to miss, watch the presentation and get started now.
