Chart of the Day: Now It’s Marvell’s Time to Step Up
The company will report earnings after the close and could surprise to the upside.
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Following a monster quarter and rise up for Nvidia (NVDA) along with raised revenue guidance we expect to see similarly strong results from Marvell Technology (MRVL) after Thursday’s close.
The big chip company is a favorite of the hyperscalers. In fact, just this week it announced a deal with Alphabet (GOOGL) that will bring it orders for 10 years or more and improve its market position. With so much competition out there Marvell is certainly doing a fine job securing customers, but we need to find out more with the report tonight.
The MRVL chart is very strong. Recent volatility still has this stock in the bullish camp (teal or blue candles). Money flow is on a buy signal and has been for weeks, but look at the nice climb in money flow (bottom pane). This is big money flowing into the stock on a consistent basis. Whether it is down or up, the buyers are coming in for Marvell.
We often see big moves in Marvell post earnings, the last big one came in May. The options market is looking for about a 13% move up or down, which is quite large and higher than normal. We’ll see if the stock makes this move, if so likely to the upside. We have recently seen good option flow in the $220 call strikes for September and October.
We like Marvell in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
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At the time of publication, TheStreet Pro Portfolio was long MRVL, NVDA and GOOGL.
