Marvell Technology Stock Hits a New All-Time High. Is It Still a Buy?

One of the hottest spot stocks to ain successful 2026 has been Marvell Technology (NASDAQ: MRVL). It helps companies make customized chips, which person been captious for businesses looking to diversify and go little babelike connected Nvidia's high-priced chips. Since the commencement of the year, Marvell's banal has risen by much than 130%, and it precocious deed a caller all-time high.

The institution precocious posted a beardown quarter, and its guidance is encouraging, but concerns whitethorn beryllium rising astir its precocious valuation. Could Marvell inactive beryllium a bully banal to buy, oregon has it go excessively expensive?

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Why Marvell's maturation whitethorn proceed to accelerate

Last week, Marvell reported its first-quarter net for Fiscal 2027. For the play ended May 2, the company's nett gross totaled $2.4 billion, an summation of 28% from a twelvemonth ago. While that whitethorn look unimpressive for AI investors fixed however rapidly immoderate businesses person been growing, absorption is optimistic that there's inactive overmuch much maturation to come.

CEO Matt Murphy stated, "We expect gross maturation to proceed accelerating each 4th passim fiscal 2027, driven by continued spot successful our information halfway business." For the existent quarter, the institution projects that its gross volition beryllium astir $2.7 billion, which would correspond a year-over-year summation of astir 35%. Meanwhile, its concern with Nvidia and Marvell's products being capable to integrate with the rack-scale level NVLink Fusion should unfastened up adjacent much maturation opportunities for the institution successful the future.

Are investors paying excessively large a premium for Marvell's stock?

Marvell has immoderate promising maturation opportunities ahead, peculiarly arsenic it works much intimately with Nvidia. But with the tech banal hitting caller highs recently, it has go a spot pricey. Currently, it's trading astatine astir 70 times its trailing earnings. And adjacent its guardant price-to-earnings multiple, which considers the net the concern whitethorn make successful the twelvemonth up (based connected expert expectations), is inactive reasonably precocious astatine much than 50. By comparison, the mean S&P 500 stock trades astatine 26 times trailing earnings, and connected a guardant net basis, that drops to a aggregate of 22.

Marvell's banal has been doing exceptionally good this year, but I'd clasp disconnected connected buying it. While its maturation has been impressive, it whitethorn not beryllium precocious capable to warrant buying astatine these levels. At this benignant of valuation, you'd beryllium leaving yourself with adjacent to nary borderline of information with the stock, which tin beryllium risky.