Marvell Announces Additional $5 Billion Stock Repurchase Authorization and $1 Billion Accelerated Share Repurchase Program

Rhea-AI Summary

Marvell Technology (NASDAQ: MRVL) has announced a significant capital return initiative, including a new $5 billion stock repurchase authorization and a $1 billion accelerated share repurchase (ASR) program. The company has already repurchased $300 million of common stock in the current quarter under its regular program.

As of August 2, 2025, Marvell had approximately $2.0 billion remaining under its prior repurchase authorization. The company's CEO Matt Murphy emphasized their conviction in the business and commitment to pursuing growth opportunities in AI infrastructure while maintaining a strong balance sheet.

Positive

• None.

Negative

• Large capital allocation to buybacks may limit funds available for other strategic initiatives
• Stock repurchase program subject to market conditions and share price volatility

Insights

Financial Analyst

Marvell's $5B new repurchase authorization and $1B ASR signal strong confidence in valuation amid AI infrastructure growth.

Marvell's announcement of a $5 billion stock repurchase authorization represents a substantial capital return initiative for a company with a market capitalization around $60 billion. This new program comes while Marvell still has $2 billion remaining under its prior authorization, indicating an aggressive expansion of its buyback capacity.

The $1 billion accelerated share repurchase (ASR) is particularly significant as it demonstrates immediate action rather than just authorization intent. ASRs typically involve working with financial institutions to repurchase shares upfront at a discount, providing immediate EPS benefits and signaling strong management conviction in the stock's intrinsic value.

This capital return strategy is being implemented from a position of financial strength. The company explicitly mentions its strong balance sheet providing flexibility to pursue both shareholder returns and strategic investments, particularly in AI infrastructure - a high-growth market segment.

What makes this announcement especially notable is the company's confidence to commit substantial capital to buybacks while simultaneously investing in growth opportunities. This balanced capital allocation approach suggests management sees the current valuation as attractive while maintaining long-term growth investments, particularly in accelerated infrastructure for AI, where Marvell has positioned itself as a key semiconductor supplier.

The timing amid market volatility in the semiconductor sector suggests management views any recent share price weakness as disconnected from the company's intrinsic value and long-term prospects in the data infrastructure and AI markets.

$1 Billion ASR in Addition to $300 Million Repurchased in Current Quarter

JP Morgan Fireside Chat with Marvell Chairman and CEO to be Livestreamed on September 24, 2025 at 10AM Pacific Time

SANTA CLARA, Calif., Sept. 24, 2025 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today announced that its Board of Directors has authorized a new $5 billion stock repurchase program.

This new authorization builds on Marvell's ongoing commitment to return capital to stockholders. As of August 2, 2025, the Company had approximately $2.0 billion remaining under its prior repurchase authorization. Since then, Marvell has repurchased $300 million of common stock in the current quarter under its regular program. In addition, the company has entered into an accelerated share repurchase (ASR) agreement with a leading financial institution to repurchase $1 billion of its common stock.

"This ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth," said Matt Murphy, Chairman and CEO of Marvell. "Our strong balance sheet provides us the flexibility to continue investing in long-term growth, particularly as we pursue the large and expanding opportunity in accelerated infrastructure for AI."

Upcoming Event

Marvell Chairman and CEO Matt Murphy will participate in a fireside chat hosted by JP Morgan on September 24, 2025, at 10AM Pacific Time. To stream the call live, pre-registration is required.

Please register at the following link in order to receive connection details: https://jp-morgan-fireside-chat-with-marvell-ceo-matt-sep-2025.open-exchange.net/

Once registered, a link will be emailed to stream the call live.

Forward Looking Statements

Statements in this report that refer to future plans and expectations, including with respect to the ASR Agreement, the settlement of such agreement, stock repurchases and capital return practices, are forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "goals," "plans," "believes," "seeks," "estimates," "continues," "may," "will," "would," "should," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements that refer to or are based on estimates, forecasts, projections, uncertain events or assumptions, including statements relating to the Company's valuation and anticipated trends in our businesses or the markets relevant to them, also identify forward-looking statements. Such statements are based on management's current expectations and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the ability of the Dealer to the ASR Agreement to buy or borrow shares of Company common stock; the market price of the Company's common stock during the term of an ASR Agreement; the impact of global and regional economic and market conditions, including illiquidity and other risks of instability in the banking and financial services industry; and the factors set forth in the Company's most recent reports on Forms 10-K and 10-Q. The Company does not undertake, and expressly disclaims any duty, to update any statement made in this report, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law.

About Marvell

To deliver the data infrastructure technology that connects the world, we're building solutions on the most powerful foundation: our partnerships with our customers. Trusted by the world's leading technology companies for over 30 years, we move, store, process and secure the world's data with semiconductor solutions designed for our customers' current needs and future ambitions. Through a process of deep collaboration and transparency, we're ultimately changing the way tomorrow's enterprise, cloud, automotive, and carrier architectures transform—for the better.

Marvell and the M logo are trademarks of Marvell or its affiliates. Please visit www.marvell.com for a complete list of Marvell trademarks. Other names and brands may be claimed as the property of others.

For further information, contact:

Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com 

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SOURCE Marvell

FAQ

What is the size of Marvell's (MRVL) new stock repurchase authorization announced in September 2025?

Marvell announced a new $5 billion stock repurchase authorization, along with a $1 billion accelerated share repurchase program.

How much stock has Marvell (MRVL) repurchased in the current quarter?

Marvell has repurchased $300 million of common stock in the current quarter under its regular program.

What was Marvell's (MRVL) remaining repurchase authorization as of August 2025?

As of August 2, 2025, Marvell had approximately $2.0 billion remaining under its prior repurchase authorization.

What is the size of Marvell's (MRVL) accelerated share repurchase program?

Marvell has entered into an accelerated share repurchase (ASR) agreement worth $1 billion with a leading financial institution.

How will Marvell (MRVL) balance share repurchases with growth investments?

Marvell stated that its strong balance sheet provides flexibility to continue investing in long-term growth, particularly in AI infrastructure, while returning capital to shareholders.