This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) is leaning into shareholder returns with a big new stock buyback. The chipmaker said Wednesday its board signed off on a fresh $5 billion repurchase plan. That’s on top of the $2 billion it still had left under its old program as of early August.
Marvell hasn’t wasted time it’s already put $300 million to work this quarter buying back shares and also lined up an accelerated repurchase deal with a major bank to retire another $1 billion worth of stock.
Our strong balance sheet gives us the flexibility to keep investing in long-term growth, especially as we chase the expanding opportunity in AI infrastructure, CEO Matt Murphy said.
Investors liked the signal and the positivity shows Marvell’s balancing act: rewarding shareholders while doubling down on AI, one of the hottest markets in chips right now.
A bigger buyback underscores management’s confidence that Marvell’s financial strength and AI bets can keep paying off.
