Marvell Has a Moaty Networking Chip Portfolio With Strong AI Exposure

We view Marvell Technology as a strong competitor in networking chips, resulting from a multiyear business pivot using acquisitions, divestitures, and organic development to focus on the cloud data center market. In our view, the new-look Marvell offers strong growth potential, impressive profitability, and a healthy competitive position. Between switching, processing, and optical chips, Marvell has one of the broadest networking silicon portfolios in the world, and we believe it is primed to expand faster than its underlying markets as future networking setups utilize greater content and we anticipate Marvell will continue to win share even in an expanding market. In particular, we believe Marvell will be a significant beneficiary of investment in generative artificial intelligence, or AI, with its strong position in optical chips and a burgeoning custom accelerator business.