Is This Top Data Center and 5G Stock a Buy Before the End of 2022?
Top data center and 5G semiconductor company Marvell Technology Group (NASDAQ: MRVL) has not escaped the bear market of 2022. After the company's third-quarter update, shares are down just over 50% on the year. Parts of the chip industry are in the midst of a cyclical downturn, and these issues have boiled over into Marvell's business as well. The next couple of quarters will be difficult as a result.
Nevertheless, Marvell has multiple growth opportunities ahead of it that could last for many years. With spending on cloud and mobile infrastructure booming, is this tech stock a buy as 2022 draws to a close?
On the surface, Marvell had a solid fiscal 2023 third quarter (the three months ended Oct. 29). Total revenue (which got a slight boost from the acquisition of Innovium last year) increased 27% to $1.54 billion. And as expected in the wake of a busy 2021 for Marvell's merger and acquisition engine, earnings per share finally returned to positive territory at $0.02, versus an $0.08 loss in the year-ago quarter. On an adjusted basis, earnings per share jumped 33% to $0.57 as operating margin got a boost from Marvell's expanded portfolio of data center and enterprise chips after taking over Innovium and Inphi.
Source Fool.com
