Back to top

Image: Bigstock

Here's How Much a $1000 Investment in Marvell Technology Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Marvell Technology (MRVL - Free Report) ten years ago? It may not have been easy to hold on to MRVL for all that time, but if you did, how much would your investment be worth today?

Marvell Technology's Business In-Depth

With that in mind, let's take a look at Marvell Technology's main business drivers.

Wilmington, DE-based Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits. The company operates in Bermuda, China, Germany, Japan, Korea, Taiwan, the United Kingdom, and the United States.

The acquisition of Cavium in July 2018 helped Marvell enhance its product portfolio and access to newer markets. Before the Cavium acquisition, Marvell was mainly known as the leading suppliers of chips for hard disk drives (HDD) used in PCs. Cavium was specialized in offering software compatible processors that enable functionality in data center applications and network connectivity for server and switches.

Therefore, the acquisition helped Marvell expanding its capabilities in the networking market and capture significant market share in the fast-growing data-center space. The strategy also helped Marvell in countering declining chips demand in HDDs due to a weaker PC market. Additionally, the move might put Marvell in a stronger competitive position in the coming years.

Marvell specializes in highly integrated System-on-a-Chip (SoC) and System-in-a-Package (SiP) devices based primarily on ARM designs and sells to both enterprise and consumer customers. It has a significant number of patents in design, software and reference platforms to its credit.

The company’s product line includes application processors, controllers, switches, communications and networking processors and technologies, as well as other SoCs for printers and smart home products. These serve two broad end markets — data center and enterprise networking.

From second-quarter fiscal 2022, Marvell changed its reporting segments from product basis to end market basis. The new reportable end-market business segments are: data center, carrier infrastructure, enterprise networking, consumer and industrial. Data center, carrier infrastructure, enterprise networking, consumer and industrial end markets contributed 40%, 19%, 22%, 12% and 7%, respectively, to the fiscal 2024 total revenues.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Marvell Technology a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in January 2015 would be worth $8,125.04, or a gain of 712.50%, as of January 24, 2025, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 198.21% and gold's return of 104.52% over the same time frame.

Analysts are forecasting more upside for MRVL too.

Marvell is benefiting from the strong demand environment across the data center end market. In the third quarter, its data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong growth across artificial intelligence (AI)-driven demand for PAM products and ZR electro-optics. Completion of inventory digestions is likely to aid growth across the enterprise networking and carrier infrastructure end markets. The stock has outperformed the industry over the past year. However, weakening consumer spending amid the protracted high inflationary conditions and still-high interest rates is likely to hurt its sales across the Consumer segment. Enterprises are postponing their large IT spending plans amid the ongoing macroeconomic uncertainties. This is likely to hurt its performance in the near term.

The stock is up 8.94% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 13 higher, for fiscal 2025. The consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marvell Technology, Inc. (MRVL) - free report >>

Published in