Marvell: Undervalued With Revenue Growth That Outpaces Peers

The semiconductor industry in 2025 is a tale of two extremes: AI-driven giants like NVIDIA soaring on explosive growth, while traditional stalwarts like Intel flounder. Amid this divergence, Marvell Technology (MRVL) emerges as a compelling asymmetric value play. With revenue growth outpacing peers, a forward P/E ratio in line with industry averages, and a strategic pivot toward AI and data center infrastructure, Marvell is undervalued relative to its growth trajectory and operational resilience.

Marvell's Revenue Growth: A Quiet Powerhouse

Marvell's 2025 annual revenue reached $5.767 billion, a 4.71% increase from 2024Marvell Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results^[4]. While this may pale against NVIDIA's 71.6% last 12 months (LTM) revenue growthMRVL Stock vs. NVIDIA - Forbes^[5], Marvell's Q4 2025 performance tells a different story. The quarter delivered $1.817 billion in net revenue, a 27% year-over-year surge, driven by a 78% YoY increase in data center revenue—accounting for 75% of total salesMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6]. This segment strength, fueled by custom AI silicon programs entering high-volume production, positions Marvell as a critical supplier to the AI infrastructure boomMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6].

Looking ahead, Marvell's guidance for Q1 2026 is even more aggressive: $1.875 billion in revenue, a 62% year-over-year increase at the midpointMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6]. This outpaces AMD's Q2 2025 32% YoY growthAMD Reports Second Quarter 2025 Financial Results^[7] and Intel's flat Q2 2025 resultsIntel Reports Second-Quarter 2025 Financial Results^[8]. The company's strategic divestiture of its automotive Ethernet business to Infineon for $2.5 billionMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6] further underscores its focus on high-growth AI and data center initiatives, while providing liquidity to manage $1.3 billion in current liabilitiesMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6].

Valuation Metrics: Undervalued Relative to Peers

Marvell's valuation metrics suggest a disconnect between its fundamentals and market price. Its forward P/E ratio of 27.15 aligns with the semiconductor industry averageMarvell Technology (MRVL) Financial Ratios - Stock Analysis^[9], but its P/S ratio of 9.94Marvell Technology (MRVL) Financial Ratios - Stock Analysis^[9] is significantly lower than NVIDIA's 26.52Exploring The Competitive Space: NVIDIA Versus Industry Peers In Semiconductors & Semiconductor Equipment^[1] and AMD's 8.89Exploring The Competitive Space: NVIDIA Versus Industry Peers In Semiconductors & Semiconductor Equipment^[1]. This implies investors are paying less for each dollar of Marvell's revenue compared to its AI-focused peers, despite its robust data center growth.

In contrast, NVIDIA's P/E ratio of 50.62Exploring The Competitive Space: NVIDIA Versus Industry Peers In Semiconductors & Semiconductor Equipment^[1] and AMD's 96.57Exploring The Competitive Space: NVIDIA Versus Industry Peers In Semiconductors & Semiconductor Equipment^[1] reflect market expectations of continued dominance in AI and high-performance computing. Intel, meanwhile, trades at a P/E of -5.10Intel (INTC) - P/E ratio - CompaniesMarketCap.com^[2], highlighting its unprofitability. Marvell's non-GAAP net income of $1.377 billion in fiscal 2025Marvell Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results^[4] and $1.68 billion in operating cash flowMarvell Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results^[4] further justify its valuation, as it generates consistent profitability while peers like Intel struggleIntel Reports Second-Quarter 2025 Financial Results^[8].

Asymmetric Value: Growth vs. Risk

The asymmetric case for Marvell hinges on its ability to capitalize on AI and data center tailwinds while trading at a discount to peers. Its custom AI silicon programs and partnerships with cloud providers position it to benefit from the $697 billion global semiconductor market in 20252025 semiconductor industry outlook | Deloitte Insights^[10], which is expanding at 11% YoY2025 semiconductor industry outlook | Deloitte Insights^[10]. Additionally, Marvell's low leverage ratio (0.67)Semiconductors Industry financial strength, from the Q2 2025 to …^[11] and strong interest coverage (355.79)Semiconductors Industry financial strength, from the Q2 2025 to …^[11] ensure financial flexibility to invest in R&D or acquisitions, unlike overleveraged peers.

The risks, however, are clear: NVIDIA's 92.0% three-year average revenue growthMRVL Stock vs. NVIDIA - Forbes^[5] and AMD's $30 billion 2025 revenue targetAMD Reports Second Quarter 2025 Financial Results^[7] suggest the AI race is intensifying. Yet, Marvell's niche in high-volume, specialized silicon for data centers—rather than competing directly in general-purpose GPUs—reduces exposure to commoditization. Its recent Infineon deal also eliminates underperforming assets, sharpening focus on growth areasMarvell Q4 FY 2025 Earnings: AI Chips Drive Revenue Growth^[6].

Conclusion: A Contrarian Play in a High-Growth Sector

Marvell is not the most glamorous name in semiconductors, but its revenue growth, disciplined capital allocation, and strategic alignment with AI infrastructure make it a compelling asymmetric value investment. While the market underappreciates its data center momentum and financial strength, the company's forward-looking guidance and industry-leading margins suggest a re-rating is imminent. For investors seeking exposure to the AI boom without paying the premium demanded by NVIDIA or AMD, Marvell offers a lower-risk, higher-conviction alternative.