What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) jumped 5% in the afternoon session after the stock's positive momentum continued as the company announced a new $5 billion stock repurchase authorization and a $1 billion accelerated share repurchase program, signaling strong confidence from management.
The news was followed by bullish comments from CEO Matt Murphy, who reaffirmed the company's positive outlook on its custom accelerator programs and provided a rough minimum guide of 18% revenue growth in fiscal 2027.
The shares closed the day at $83.81, up 4.7% from previous close.
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What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.2% on the news that the company's Board of Directors authorized a new $5 billion stock repurchase program. This new authorization built on the company's ongoing commitment to return capital to stockholders. Marvell also entered into an agreement to repurchase $1 billion of its common stock through an accelerated share repurchase plan. Such buybacks can indicate that management believes the company's stock is a good investment and shows confidence in future growth. The company's CEO stated that a strong balance sheet provided the flexibility to keep investing in long-term growth, especially in the expanding market for AI infrastructure.
Marvell Technology is down 27.1% since the beginning of the year, and at $82.79 per share, it is trading 34.3% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $2,176.
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