Marvell Technology, Inc. (NASDAQ:MRVL) shares rose Wednesday after the chipmaker unveiled a fresh capital return plan and highlighted its growing focus on data center and AI infrastructure. The company said its board approved a new $5 billion share repurchase authorization and disclosed an accelerated share repurchase agreement.
Marvell’s board cleared a new buyback program totaling $5 billion. As of Aug. 2, 2025, the company had about $2.0 billion remaining under its prior repurchase authorization. Since then, it has bought back $300 million of stock this quarter under its regular program and entered an accelerated share repurchase with a leading financial institution to retire $1 billion of shares.
With a current market capitalization of roughly $64.33 billion, the total buyback quantum, including the new $5 billion plan, $1 billion under the accelerated share repurchase, and $700 million left from the previous program, comes to approximately $6.7 billion, or about 10% of the company’s market value.
“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,” the CEO added.
According to Benzinga Pro, MRVL stock has gained over 8% in the past year. Investors can gain exposure to the stock via iShares Semiconductor ETF (NASDAQ:SOXX).
The company recently closed the $2.5 billion, all-cash sale of its automotive Ethernet business, sharpening its emphasis on data center and artificial intelligence markets.
Management said the data center segment now represents 74% of total revenue, rising 69% year over year, underscoring where the firm sees its most durable growth opportunity.
Outlook And Investor Calendar
On Aug. 28, Marvell guided for third-quarter adjusted earnings of 69 cents to 79 cents per share and revenue between $1.957 billion and $2.163 billion.
Investors will hear more from leadership when Matt Murphy joins a JPMorgan-hosted fireside chat on Wednesday, Sept. 24, 2025, at 10 a.m. Pacific Time; streaming requires pre-registration.
Price Action: MRVL shares were trading higher by 3.30% to $77.09 at last check Wednesday.
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