Marvell announces $5 billion stock repurchase program
Published 2025-09-24, 09:10 a/m
SANTA CLARA - Marvell Technology, Inc. (NASDAQ:MRVL), a prominent semiconductor company with a market capitalization of $64.33 billion, announced Wednesday that its Board of Directors has authorized a new $5 billion stock repurchase program. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations and operates with a moderate debt level.
The semiconductor company has also entered into an accelerated share repurchase (ASR) agreement with a financial institution to repurchase $1 billion of its common stock. Additionally, Marvell has repurchased $300 million of common stock in the current quarter under its regular program.
As of August 2, 2025, the company had approximately $2.0 billion remaining under its prior repurchase authorization.
"This ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth," said Matt Murphy, Chairman and CEO of Marvell, according to the company’s press release. The company’s confidence appears well-founded, with InvestingPro analysis showing impressive revenue growth of 37% over the last twelve months. Subscribers to InvestingPro can access 12 additional key insights about Marvell’s financial health and growth prospects.
Marvell, which specializes in data infrastructure semiconductor solutions, stated that its balance sheet provides flexibility to continue investing in long-term growth, particularly in accelerated infrastructure for AI.
The company also announced that Murphy will participate in a fireside chat hosted by JP Morgan today at 10AM Pacific Time.
The announcement comes as semiconductor companies face evolving market conditions in the technology sector. Stock repurchase programs are typically implemented when companies believe their shares are undervalued or to return capital to shareholders.
Forward-looking statements in the company’s announcement noted that actual results may differ from expectations based on various factors, including global and regional economic conditions and market price fluctuations of the company’s common stock during the term of the ASR agreement. With a beta of 1.85, Marvell’s stock shows higher volatility than the broader market, though analysts maintain a bullish outlook with 18 recent upward earnings revisions. Detailed analysis of Marvell’s market position and future prospects is available in the comprehensive Pro Research Report, part of the InvestingPro subscription.
In other recent news, Marvell Technology announced a $5 billion stock repurchase authorization, including a $1 billion accelerated share repurchase program. This move is part of the company’s ongoing strategy to return capital to shareholders. Despite this, UBS lowered its price target for Marvell to $95, citing concerns over weakness in its data center segment, although the firm maintained a Buy rating. TD Cowen also reiterated its Buy rating on Marvell, highlighting challenges in the custom silicon business expected to decline in the October quarter but anticipated to recover by January.
Additionally, Evercore ISI adjusted its price target for Marvell to $122 from $133, maintaining an Outperform rating. This change followed Marvell’s earnings report, which met expectations and provided slightly higher-than-consensus earnings per share guidance for the October quarter. Despite these developments, Marvell’s shares fell by 11% in after-hours trading, as noted by Benchmark, which continues to rate the stock as a Buy with a $95 price target. Benchmark attributed the decline to inventory digestion issues with a major customer, Amazon, expected to resolve within 45-60 days.
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