This semiconductor stock at its 52-week low right now is a ‘buy’

Marvell Technology Inc (NASDAQ: MRVL) hit a 52-week low of $48 a share on Tuesday that, as per Sanctuary Wealth CIO, is an opportunity to buy a quality name at a deep discount.

Kilburg defends his ‘buy’ call on MRVL

Jeff Kilburg derives his enthusiasm for the chipmaker from its strong fundamentals. Explaining his constructive view on “MRVL” this afternoon on CNBC’s “The Exchange”, he said:

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I think Marvell Technology is a buy. It has very strong financial track record. We’ve seen 32 consecutive quarters of sequential revenue growth. And it’s institutionally owned; look at Fidelity, Vanguard, and BlackRock.

Marvell confirmed last month that it wasn’t seeing a slowdown in cloud data centre demand. Kilburg is convinced the Wilmington-headquartered company will continue to record a 45% year-over-year growth in its earnings.

Wall Street is strongly bullish on Marvell stock

Semiconductor stocks are gasping for air this year as macro headwinds, including inflation, the Ukraine war, and supply constraints continue to make investors shy away from these names.

Still, Marvell Technology reported better-than-expected results for its fiscal first quarter in May. A free cash flow yield of over 4.0% is among other reasons why the stock is an attractive buy at current valuation.

Wall Street, at present, is strongly bullish on “MRVL” and sees upside to $86 a share on average that translates to an 80% increase from here. The fabless chip designer is growing faster than its bigger rivals like Nvidia and AMD.