Marvell Technology Q3 FY1/26 Earnings Review
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In Which The Market Finds Out That You Do Need Boring Stuff In Datacenters Too
Well, eventually it had to happen. From about Q3 - Q4 2022 folks woke up to the idea that to do AI you needed a lot of GPUs and if you need a lot of GPUs you need $NVDA and … well you know how that turned out.
More recently, as late as this year, people were like oh yes and datacenters eat memory these days oh look the DRAM price is spiking … I think I will buy me some $MU or SK Hynix or (bit of a stretch this) Western Digital or Sandisk. And so the DRAM and spillover NAND pop played out.
For a while now I have been saying - and you also need interconnect and power management and a bunch of other very boring stuff that Marvell does. Today the market realizes this with a tremendous print from Marvell. I don’t know if the stock is too difficult a company to understand to really catch the imagination - certainly they have neither the capital-markets-marketing ability of Mr. Huang nor the easy-to-understand pureplay appeal of a Micron. So we have to see if this bid can sustain. But for now, great print, stock up, and I think it can run higher.