Jim Cramer on Marvell stock: ‘it’s too soon to buy’

Famed investor Jim Cramer warns against investing in Marvell Technology Inc (NASDAQ: MRVL) even though it’s down over 10% on Friday.  

Cramer shares view on Marvell stock

The $66 billion chipmaker based out of Wilmington, Delaware posted an in-line earnings report last night but disappointed in terms of guidance.

$MRVL also authorised $3.0 billion in stock repurchase this week but Cramer remains dovish on the semiconductor giant as there still are things that “haven’t troughed [and] are going down”.

“Stock-based compensation” also contributed to his view that “it’s too soon to buy” Marvell stock.

Note that his Charitable Trust did use to have a position in the Nasdaq-listed firm and it’s still in his Club’s Bullpen stock watchlist as well.

Citi analyst still sees a 20% upside in $MRVL

The Mad Money host is dovish on Marvell Technology even though it recently announced the “industry’s first” 2-nanometre platform for “accelerated infrastructure”.

His view is in contrast with Atif Malik – a Citi analyst who continues to see upside in $MRVL to $91 (20% upside from here).

Malik remains bullish because data centre sales led by artificial intelligence continue to be a bright spot for Marvell. The chipmaker saw an annualised growth of 38% in its DC segment in Q4 – well above expectations.

Marvell shares are attractive to own also because they pay a small dividend yield as well.