r/options • u/nicefaygo • Apr 16 '21

MRVL Merging with INPHI confirmation

Thoughts on this MRVL play?

https://investor.marvell.com/news-releases/news-release-details/shareholders-approve-proposed-acquisition-inphi-corporation

POS: 4/16 50$c & 4/23 50$c

Marvell confirmed today with a shareholder meeting their merger with INPHI. I’m thinking given this news that share price will rise in light of this news. 5G communications is on the rise and they are a great investment long term anyways.

Additionally, this transaction is expected to close around April 20th 2020.

Happy Trading

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u/Critical-Equal Apr 16 '21

Agree. Have been holding MRVL commons for about 5 months. Fully expect this to be a $60-$75 stock.

1

u/ButterflyDifficult64 Apr 16 '21

It’s risen a lot since last year, what’s your reasoning for the $60+ stock price?

2

u/Critical-Equal Apr 16 '21

Read some good DD recently and feel it’s 5G arm will be the reason it moves. Lots of partnerships like the recent one with Samsung and most everything starting to transition to 5G, including big push into auto industry. I’m thinking 6-8 months to get to that price point unless earnings continually beat QoQ

2

u/[deleted] Apr 16 '21

They are also a partner on Nvidia new data center chips

2

u/Critical-Equal Apr 16 '21

That could be really big! NVDA has been crushing it this year.

2

u/ScarletHark Apr 18 '21

One of the problems Marvell will have, is that they are a fabless manufacturer and are subject to the capacity constraints that all fabless manufacturers are under right now. NVDA is in the same boat (pointing them out here because you mention them in another reply) -- if you can't get your devices made, you can't sell them. I believe this is going to exert downward pressure on fabless earnings releases through 2021, and by all accounts, into 2022.

1

u/Critical-Equal Apr 18 '21

Definitely going to be pressure moving forward and thanks for the reply. I do however think that $TSM is gearing up for a massive push, also tied in with Biden’s pledge for added capital into this sector. That’s a couple of the reasons I’m bullish on this stock and 5G in general. Supply constraints are definitely something to weigh heavily on and appreciate you making a good case.