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Marvell (MRVL) Expands Silicon IP With 3nm Interconnect, SerDes

Marvell Technology MRVL recently demonstrated high-speed and ultra-high bandwidth silicon interconnects that enable data transfer speeds at up to 240 tera bytes per second. The data transfer speed offered by the silicon interconnects is 45% faster than other available multichip packaging applications and equivalent to downloading 10,000 high-definition movies every second.

The company’s industry-first silicon building blocks in this node also include 112G XSR serializer/de-serializer (SerDes), long reach SerDes and peripheral component interconnect express Gen 6 / CXL 3.0 SerDes, which intend to accelerate data infrastructure performance. Built on Taiwan Semiconductor Manufacturing Company's TSM 3-nanometer (3nm) process, Marvell's innovative parallel die-to-die interconnect ensures reduced cost and power consumption of chips and computing systems for the engineers.

The 3nm building blocks support all semiconductor packaging options starting from standard and low-cost redistribution layers to silicon-based high-density interconnect. These blocks are likely to increase the bandwidth, performance and energy efficiency of next-generation data infrastructure while expanding Marvell's position as a silicon leader for cloud, AI, networking, 5G, automotive and custom solutions.

Marvell sampled and commercially released the industry-leading 112G SerDes, which serves as high-speed pathways for data exchange between chips and silicon components inside chiplets. This technology reduces pins, traces and circuit board space to lower cost. In fact, tens of thousands of SerDes links can be contained in a rack of a hyperscale data center.

Marvell Technology, Inc. Price and Consensus

Marvell Technology, Inc. Price and Consensus
Marvell Technology, Inc. Price and Consensus

Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote

Compatible with 2.5D and 3D packaging, these technologies will reduce customers' time-to-market, design risks and verification efforts related to complex monolithic or multi-die system-on-chips designs. Marvell integrated SerDes and interconnect technologies into its flagship silicon solutions, which consist of Teralynx switches, PAM4 and coherent digital signal processors, Alaska Ethernet physical layer devices, OCTEON processors, Bravera storage controllers, Brightlane automotive Ethernet chipsets and custom application specific integrated circuits (ASICs).

In October 2022, Marvell introduced the 3nm silicon technology platform in collaboration with Taiwan Semiconductor to enhance its solution portfolio across cloud data center, carrier, enterprise and automotive markets. With this technology, the company enables cutting-edge multi-die and multi-chiplet systems-in-package for its industry-leading infrastructure products and co-development of custom ASIC solutions, which are designed to deliver system-level differentiation for wired and wireless networking, storage and cloud computing, optimized for advanced infrastructure use cases like machine learning.

The long-term prospects of Marvell remain high as the semiconductor industry is the backbone of the current-day technology-driven economy. The digitization across industries, adoption of cloud computing and the integration of artificial intelligence and machine learning are likely to fuel demand for the company’s products.

Nonetheless, its near-term prospects looks gloomy as customers reschedule orders to manage excess chip inventories. Weakening consumer spending amid the rising concern over global recession is also likely to continue hurting the company’s sales across the Consumer segment.

Additionally, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues, which are likely to hurt Marvell’s near-term financial performance.

Also, the U.S. government's export restriction on certain Chinese customers is likely to continue to be an overhang on the top line. Intensifying competition, stronger US dollar and a highly leveraged balance sheet along with low cash balance remain major concerns.

In fourth-quarter fiscal 2023, Marvell’s data center revenues plunged 13% year over year to $497.6 million. This downside was due to inventory corrections done by customers amid macroeconomic headwinds and geopolitical tensions.

Zacks Rank & Stocks to Consider

Currently, Marvell has a Zacks Rank #5 (Strong Sell), while Taiwan Semiconductor carries a Zacks Rank #3 (Hold). Shares of MRVL and TSM have declined 31.5% and 10.7%, respectively, in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Meta Platforms META and ServiceNow NOW, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta Platforms' first-quarter 2023 earnings has been revised a penny upward to $1.97 per share over the past seven days. For fiscal 2023, earnings estimates have moved north by a penny to $10.23 in the past seven days.

META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 8.6%. Shares of the company have gained 14.5% in the past year.

The Zacks Consensus Estimate for ServiceNow’s first-quarter 2023 earnings has been revised southward from $2.04 to $2.02 per share over the past 90 days. For 2023, earnings estimates have moved up by a penny to $9.16 in the past seven days.

NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.9%. Shares of the company have declined 3.2% in the past year.

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