A leading voice in the technology advisory space says one semiconductor company’s latest move sends a strong signal about its positioning in the fast-moving AI market.
In a new X post, Futurum CEO Daniel Newman says Marvell Technology (MRVL) looks bullish after the company’s board approved a major stock repurchase authorization.
According to Newman, the step underscores conviction in the business and reflects how the market is currently pricing the chipmaker.
“MRVL $5 Billion buyback approved today. Nice signal of confidence in the business. Marvell can’t fully signal all of its XPU commits, but this says it feels undervalued. Bullish.”
Marvell’s board greenlit the multi-billion-dollar stock buyback program, citing balance-sheet strength and a commitment to returning capital to shareholders.
As of early August, Marvell had roughly $2 billion remaining under a prior authorization. Since then, it has repurchased $300 million in the current quarter and entered an accelerated share repurchase (ASR) agreement with a financial institution for another $1 billion.
Says Matt Murphy, Chairman and CEO of Marvell,
“This ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth. Our strong balance sheet provides us the flexibility to continue investing in long-term growth, particularly as we pursue the large and expanding opportunity in accelerated infrastructure for AI.”
MRVL is up over 30% in September alone after closing the trading day at $80.
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