Marvell Technology Exec says Co Aiming For 20% Share Of The Total Data Center Market After Capturing 10% Share In 2023; Custom Business Would Carry Lower Gross Margins Than Merchant Type Business
Portfolio Pulse from Benzinga Newsdesk
Marvell Technology aims to double its data center market share to 20% after achieving a 10% share in 2023. The company's custom business, which is part of this growth strategy, is expected to have lower gross margins compared to its merchant type business.

April 11, 2024 | 4:44 pm
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Marvell Technology targets a 20% share in the data center market, doubling its 2023 share. The expansion into custom business is expected to reduce gross margins.
Marvell Technology's ambitious goal to double its market share in the data center sector signals strong growth prospects, which could positively influence investor sentiment and stock price. However, the expected lower gross margins from the custom business segment might temper some of the enthusiasm, as it could impact overall profitability. The net effect is likely positive in the short term due to the growth potential outweighing margin concerns.
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