Jim Cramer says Marvell Technology stock is expensive unless all of its businesses succeed, at which point it will become cheap.
Cramer stated on CNBC on August 28th ET that Marvell Technology (NASDAQ:MRVL) stock is currently very expensive, but if its business develops as expected, its valuation will become cheap by 2028, similar to NVIDIA several years ago. After Marvell released its earnings report on August 27th, its stock price fell by 10.28% the following day. The company guided for total revenue to grow by approximately 50% and data center business to grow by over 60% in fiscal year 2028, but its P/E ratio is as high as 83x. This valuation can only be supported if these growth targets are met and operating margins increase from 14.5% to 38-40%. Cramer also pointed out that the stock should not be shorted before the analyst meeting on October 6th, as management is expected to announce a compelling revenue framework for fiscal year 2029 and beyond.
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