Can you imagine that in just a few years, a company has been sued, its financial problems have been investigated, its product line has not been sold, its employees have been laid off, and its founders have both left. Went through a lot of difficulties, but the stock price soared again.

It's Marvell.One of the top ten non-chip factory semiconductor design companies in the worldHuangpu military Academy, which is known as the Chinese chip entrepreneur. Specializes in manufacturing chips for storage, communications and consumer electronics.

Marvell share price since MarchThe increase is as high as108%Now its share price can be said to be inThe highest point in nearly five years. The OBV line has been strong since late February, and trading volume has continued to increase since mid-May, a sign that investors are actively entering the market and profiting from it.

The logic behind the surge

• During the severe epidemic, the US stock market plummeted, and US stock semiconductors fell sharply. With the control of the epidemic, the overspeed recovery of the automobile supply chain and the gradual compensation of production capacity loss.Semiconductor companies are bottoming out one after another.

• The company reported better-than-expected earnings in the first quarter of this year. Strong demand for its network products in data centers and 5G infrastructure end markets generated revenue of up to $694 million for Marvell, up 4.7 per cent year-on-year. Although the epidemic led to a decline in the company's storage revenue compared with the same period last year, Marvell's SSD business remained resilient and continued to grow, driven by increased shipments of data center applications.

Although the storage business was greatly affected by the epidemic in the first quarter, it is expected to rebound in the second quarter and the network business will continue to grow.

-Matt Murphy, President and CEO of Marvell, is optimistic about the future of the company.

Cloud Business Outlook and5G exploration

Since the sudden change of circumstances in 2016, the founders have left one after another, and Marvell has started a crazy self-help mode. The company has taken a series of bold transformation measures to make it a long-term success in the enterprise, data center, operator and auto market. This year marks the 25th anniversary of the company, and Marvell celebrates the company's new brand logo, marking a milestone in its successful transformation.

• Network and storage are the main services of Marvell. The company's storage solutions enable customers to build high-capacity products for hard disk drives, tape drives, optical discs and solid-state drives, as well as host adapter cards and bridge cards. Marvell's first quarterly report this year showed that revenue from the online business (57%) rose 15% year-on-year to $393.9 million. On the other hand, the storage business is seasonally weak due to damage to the supply chain.

• CEO Matt Murphy said on the first quarter earnings call thatThe company's cloud business will be another key growth driver.He revealed that the company is currently building cloud franchises that combine the company's storage, network and processor technologies. For the past four years, Marvell has been building a cloud business through internal investment and the use of products and technologies acquired at Cavium and Avera.

• At the same time, MarvellIs thought to be in5G One of the companies in an advantageous position in the field. In the early days of 5G launch, telecom operators need to build infrastructure to start and run 5G networks. Marvell happens to provide global operators with base station components that allow mobile users to communicate with 5G networks over radio links.

In March 2020, Nokia and Marvell announced that they would jointly promote the leading 5G multi-channel wireless access technology (Radio Access Technology, RAT) innovation, including successive generations of customized chips and network infrastructure processors, and further expand the application range of Nokia ReefShark chipsets to provide greater power for 5G solutions.

However, as Huawei, the world's largest telecom equipment supplier, has been listed as an entity by the US government, the company's business has been blocked, which affects not only the development of 5G business, but also Marvell's core business (network and storage).2021Estimates for the second quarter of the fiscal year also show that the U. S. government's export restrictions on some Chinese customers will have a negative impact on Marvell.

Most analysts expect Marvell prices to range from $30 to $40, according to Bloomberg.