Buy this Great Semiconductor Stock Before Earnings for Tech Growth?

 | Feb 24, 2021 09:14PM ET

Technology stocks have gone on a wild ride over the past several weeks. Tuesday’s craziness that saw the Nasdaq sink over 2.5% in morning trading, before recovering a large chunk of those losses by the end of the day, helps highlight tech’s standing on Wall Street.

Despite the recent setbacks, tech companies have posted impressive fourth quarter financial results and their outlooks have improved. Most of the big names, from Apple MSFT have already reported their quarterly results. In fact, we now have Q4 results from 91% of the technology sector’s total market capitalization in the S&P 500.

But that doesn’t mean it’s too late to find strong tech stocks to buy amid the stronger-than-projected earnings season. Now, let’s dive into Marvell (NASDAQ:MRVL) Technology Group Ltd. MRVL ahead of its Q4 fiscal 2021 financial release on March 3 to see why it might be worth buying.

Tech Update

Wall Street pulled profits out of nearly every name in technology since the Nasdaq hit records on February 12. But buyers stepped in Tuesday afternoon after the index nearly hit its 50-day moving average, and the Nasdaq then jumped 1% during regular trading Wednesday.

The recent downturn was attributed to worries about tech valuations, as Treasury yields climb. The pullback was certainly healthy, but Wall Street is hardly nervous about the technology sector’s long-term growth outlook.

Marvell’s Fundamentals

Marvell is an infrastructure semiconductor solutions firm. MRVL’s storage, network infrastructure, and wireless connectivity offerings are set to benefit from the continued growth of cloud computing and the 5G revolution.

MRVL announced last October its plan to buy Inphi (NASDAQ:IPHI) IPHI to boost its standing and offerings within these key growth areas of tech. The deal is projected to close by the second half of this calendar year.

In a showcase of its growth and size, Marvell was added to the NASDAQ-100 Index in December. This puts it in the same ballpark as chip firms such as Nvidia AVGO , as well as nearly all of the biggest tech names in the world.

MRVL stock has soared 415% in the last five years to blow by the Zacks Tech Sector’s 175% and its industry’s 80%. More recently, it is up 120% in the trailing 12 months. Investors might also find a juicier entry point since the stock has cooled off recently. Marvel is currently trading around 10% below its January records at roughly $49 per share.