Why Marvell Technology (MRVL) is Among the Best Oversold NASDAQ Stocks to Buy Right Now

Marvell Technology (NASDAQ: MRVL), a leader in semiconductor solutions for data centers and AI infrastructure, has seen its stock price plummet nearly 56% year-to-date (YTD) through April 2025. However, a confluence of technical, fundamental, and valuation factors suggests this chipmaker is now positioned as one of the most compelling oversold plays in the NASDAQ market.

Technical Indicators Signal a Potential Rebound

MRVL’s technicals paint a picture of a stock primed for a recovery. The Relative Strength Index (RSI) exited oversold territory (below 30) on April 9, marking a critical turning point. By April 21, a buy signal was triggered as the stock formed a pivot bottom, driving a 18.8% two-week rally. Despite this rebound, the stock remains 34% below its January 2025 peak of $127.48, offering further upside potential.

Key technical levels to watch:
- Near-term resistance: $60.96 (April high).
- Support: $52.87 and $50.03 (key Fibonacci retracement levels).
- Moving averages: The 50-day MA ($55.34) offers short-term support, while the 200-day MA ($60.55) remains a hurdle for sustained gains.

Fundamental Turnaround in AI and Data Center Growth

Beyond technicals, MRVL’s operational turnaround and strategic focus on AI infrastructure provide a solid foundation for recovery.

1. Profitability Improves:
2. Q4 FY2024 net income surged to $200.2 million, reversing a $676 million loss in Q3.

3. AI revenue is projected to exceed $2.5 billion in FY2025, with management targeting $3.5 billion by FY2026, driven by custom accelerators and silicon photonics.

4. Strategic Divestitures:

5. The $2.5 billion sale of its automotive Ethernet business to Infineon in April 2025 reduces reliance on cyclical markets and focuses capital on high-growth segments.

6. Product Leadership:

7. Marvell’s Teralynx 10 switch and PCIe Gen 6 over optics technologies are gaining traction in hyperscale data centers.
8. Revenue per employee hit $819,000 in FY2024, underscoring operational efficiency.

Valuation: Undervalued at Current Levels

Despite the YTD decline, MRVL appears significantly undervalued relative to its growth trajectory:

• Morningstar’s $90 fair value estimate (as of March 2025) implies a 46% upside from April’s $58.68 close.
• P/S ratio of 8.8x is reasonable compared to its 15-year average of 10x, especially given AI-driven revenue visibility.
• AAII’s "Ultra Expensive" rating (F grade) overlooks the shift to recurring AI infrastructure demand, which Morningstar attributes to a narrow economic moat.

Risks to Consider

• Volatility: MRVL’s beta of 2.67 means it’s 167% more volatile than the market. A failed earnings report (next due May 29) or macroeconomic slowdown could reignite selling.
• Competition: Broadcom (AVGO) dominates networking markets, and Marvell’s storage segment faces cyclical headwinds.
• Leadership Transition: The resignation of President Raghib Hussain (effective May 2025) introduces execution risks.

Conclusion: A High-Reward Opportunity

Marvell Technology’s combination of oversold technicals, AI-driven revenue tailwinds, and undervaluation positions it as a compelling NASDAQ buy. While risks like high volatility and competition are valid, the $90 fair value estimate, strategic focus on $3.5 billion AI revenue, and technical rebound from oversold levels outweigh near-term concerns.

Investors should consider gradually accumulating MRVL near current levels, with a stop-loss below $50 and a target of $80–$90. For those willing to navigate short-term noise, this semiconductor leader offers a rare blend of undervaluation and long-term growth.

Data as of April 2025. Past performance does not guarantee future results.