
Marvell Technology Inc. on September 24, 2025, received board approval for a $5 billion share buyback program. This includes a $1 billion Accelerated Share Repurchase (ASR), which will take effect the next day. The company had already repurchased $300 million worth of shares this quarter. CEO Matt Murphy stated that this move reflects strong confidence in the company’s business prospects and the value of its shares.
Company Overview: Marvell Technology Inc.
Marvell Technology Inc. is a leading semiconductor company specializing in data infrastructure solutions. The company’s product range includes networking, storage, processing, and connectivity chips. Marvell aims to provide high-performance solutions for data centers, cloud, and AI infrastructure.
Marvell’s Position in the AI-Chip Market
Marvell aims to capture 20% market share in custom AI processors by 2028, compared to less than 5% in 2023. The company estimates the total addressable market (TAM) for AI chips could reach $94 billion by 2028. Additionally, Marvell estimates a $55 billion TAM for its custom AI chips, up from $6.6 billion in 2023. For the data center semiconductor market—including switching, interconnect, storage, and custom compute chips—the TAM is projected to reach $94 billion by 2028. Marvell targets a 20% market share across both segments.
Economic Impact: Effect of the Share Buyback
The buyback is likely to increase earnings per share (EPS) as the number of shares available in the market decreases. Moreover, this move boosts investor confidence, which may lead to price stability and potential share appreciation. The company has already repurchased $300 million in shares this quarter, and under the ASR agreement, it plans to repurchase an additional $1 billion in shares starting the next day.
Competitive Perspective: Marvell’s Position
Marvell’s key competitors, such as Nvidia and AMD, are also active in the AI chip space. However, Marvell has established significant partnerships for its custom AI processors, including with Amazon, which strengthens its competitive position. The company aims for a 20% market share in custom AI processors by 2028, compared to less than 5% in 2023.
Benefits and Advice for Investors
Benefits:
- Share repurchases reduce the number of shares in circulation, potentially increasing EPS.
- Opportunities for short-term and long-term gains for investors.
- Expected stability and growth in the company’s stock.
Caution:
- Consult a financial advisor before buying shares.
- Market volatility and risks always remain.
Source: Marvell Investor