Investing Club: We're boosting our position in this chipmaker

Published Tue, Jan 25 20223:10 PM ESTUpdated Tue, Jan 25 20223:11 PM EST

We are buying 100 shares of Marvell Technology (MRVL) at roughly $68.50. Following the trade, the Charitable Trust will own 1,400 shares of Marvell Technology. This buy will increase MRVL's weight in the portfolio from about 2.30% to 2.46%. Marvell Technology is one of our favorite semiconductor companies due to its leading exposure in some of the fastest-growing themes in high performance computing. The company boasts a large, fast-growing data center business, where revenues more than doubled YoY in the most recently reported quarter. Marvell is also one of the leaders in 5G networking, a theme that will be a multiyear tailwind for the company as the global 5G rollout progresses. We also cannot forget about Marvell's up and coming portfolio in automotive, which management has called its next multibillion-dollar market opportunity. Marvell is also a pick-and-shovel way to play the emerging metaverse theme, because virtual environments will significantly accelerate several key trends in the cloud and the need to store vast amounts of data in secure environments. The stock may not be cheap with its roughly 31x forward price-to-earnings multiple, but it has already significantly de-rated, with shares about 25% off their high, and it should maintain a premium because it is growing faster than peers. (Jim Cramer's Charitable Trust is long MRVL . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Matt Murphy, president and CEO of Marvell Technology

Adam Jeffery | CNBC

We are buying 100 shares of Marvell Technology (MRVL) at roughly $68.50. Following the trade, the Charitable Trust will own 1,400 shares of Marvell Technology. This buy will increase MRVL's weight in the portfolio from about 2.30% to 2.46%.

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