Ace integrated silicon circuit maker
Marvell Technology Group Ltd.
) seems upbeat after delivering strong quarterly results in
mid-May. There have been a number of developments over the past few
days that we think could attract investors.
Chinese telecom company China Mobile has recently launched a
TD-SCDMA phone that uses a number of Marvell chipsets. Marvell's
offerings on the TD-SCDMA standard are proven. Therefore, China
Mobile's recent push into the area is a big positive. Particularly
so, since China Mobile is one of the largest telecom service
providers in a very populous region and the demand for TD-SCDMA
smartphones are increasing.
Marvell is also supplying its flagship ARMADA XP processor to
) for its latest cloud-based server offering, Copper ARM. Dell is
gradually becoming a key player in the cloud space. The success of
this latest product will not only push Dell ahead, but it will also
open up new avenues for Marvell.
Marvell is also set to announce a host of latest technological
inventions targeting smartphones, tablets and notebooks, Google TV,
and cloud computing appliances in COMPUTEX Taipei, a computer expo
held annually in Taipei, Taiwan. The event started on June 5 and
will end on June 9.
We see these developments as the prime driving force for
achieving Marvell's upbeat guidance provided in the last quarter.
(Check out the detailed second quarter guidance in the blog:
Marvell Beats, Outlook Bright
Stiff competition in the semiconductor market from major
players, such as
Texas Instruments Inc.
), significant number of pending lawsuits, higher material costs
and the company's European exposure will remain as concerns.
However, we feel that a strong product portfolio, sound pipeline, a
diverse revenue model, stable balance sheet, association with
Google (ARMADA 1500 HD Media System-on-a-Chip for Google TV) and
synergies from the Xelerated acquisition could give the company's
shares a boost, going forward.
Currently, Marvell Technology has a Zacks #3 Rank, implying a
short-term Hold recommendation.
DELL INC (DELL): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
LSI CORP (LSI): Free Stock Analysis Report
MARVELL TECH GP (MRVL): Free Stock Analysis
TEXAS INSTRS (TXN): Free Stock Analysis Report
To read this article on Zacks.com click here.