We’re Buying More Shares of 2 Holdings

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
BAC	Buy	26	51.89	4,025	3.7
MRVL	Buy	245	145.10	1,190	3.0

After you receive this alert, the Portfolio will make the following trades

— Buy 26 shares of Bank of America (BAC) at or near $53. Following the trade, we will own 4,025 BAC shares, accounting for roughly 3.65% of the Pro Portfolio’s assets.

— Buy 245 shares of Marvell (MRVL) at or near $148. Following the trade, we will own 1,190 MRVL share, accounting for roughly 3.0% of the Pro Portfolio’s assets.

Bank of America

Over the last several trading sessions, we’ve seen a pick up in capital raising activity from the hyperscalers and others, noting the high levels of demand for offerings from Microsoft (MSFT) and Meta (META). In our opening comments this morning we touched on the effort to raise $40 billion for SpaceX (SPCX), and to that we can add Apple (AAPL) joining the ranks of companies tapping the bond market. Apple is reportedly selling debt in seven tranches from two to 10 years.

This adds to our thinking that concerns over the recent slowdown in the IPO market has weighted too much on investment banking revenue expectations. That led us to pick up Morgan Stanley (MS) shares in late October near $185, and now with BofA being named in the Apple deal and following its position in the $63 billion deal associated with Broadcom (AVGO) announced in late October, we are making a similar move with BAC shares. Given our existing position size, the size of this move is on the smaller end of the spectrum.

For now, we’ll leave our BAC price target intact, but we’ll aim to revisit it and our current rating once the pending Anthropic IPO has been completed and the market tells us if the IPO market is set to re-open. That will likely determine the timing of OpenAI’s IPO now that management confirmed plans to go public in 2027.

On the housekeeping front, this trade will increase the Portfolio’s BAC share count by ~25%.

Marvell

We realize the move to add additional MRVL shares to the Portfolio may not be everyone’s cup of tea. However, in our view, the discussion we shared with you yesterday and extreme skepticism compared to valuation, even one with a sharp haircut, indicates the fall in the shares is overdone. Meanwhile, hyperscaler capex funding issues continue to be addressed, and comments continue to point to demand outstripping supply for AI and data center chips.

As far as the Marvell-Lumentum (LITE) deal, the more we think about it, the management teams at both companies are pretty smart, and odds are they are receiving the message being sent by the market. That suggests that the probability is rising that either the deal terms get reset or they put the kybosh on it. And while it may sound a bit far out, we have to wonder if the team at Alphabet (GOOGL) that organized the custom silicon and AI infrastructure agreement announced back in August is putting some pressure on the two management teams to re-think things. Remember, Alphabet’s warrants to purchase up to 58.97 million common shares of Marvell, subject to certain custom silicon revenue hurdles, are at an exercise price of $206.58 per share.

That combination is leading us to use the near 50% plummet in MRVL shares to lift our position size. Should the Marvell-Lumentum deal be called off, we would not be surprised to see a sharp snapback in the shares. As we make the move, we will reset our checkpoint to $125, which is in sync with the 100-day moving average on the weekly chart.

On the housekeeping front, this trade will increase the Portfolio’s MRVL share count by ~24%.

More Pro Portfolio:

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long BAC, MRVL, AAPL, META, GOOGL, AVGO and LITE.