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This Chip Company Saw 30% Growth From a Key Sector

Notwithstanding the ongoing challenges in semiconductors, this company sees boom times.

Chip stocks may be coming under pressure as interest rates rise, but that doesn't mean business isn't any good. 

In fact, the CEO of a major player recently disclosed big growth numbers in a key sector.

Matt Murphy, CEO of chipmaker Marvell Technologies  (MRVL) - Get Free Report said on a recent episode of the Mad Money TV show that the company’s recent strong numbers show how the firm has learned to deal with the chip shortages.

The company's stock rose steadily from the onset of the pandemic in early 2020 to the end of 2021. Shares have struggled with the rest of the tech sector in 2022, but  the stock now trades for around 20 times earnings.

On Real Money, Bruce Kamich looked at Marvel's stock recently. "The broad market is still weak and it can dominate individual names," Kamich wrote. "Keep your powder dry and avoid the long side of MRVL."

Murphy said Marvell is doing "extremely well," and the most recent quarter was yet another "beat and raise" event for the company. All of Marvell's end markets are up, especially the data center, where companies continue to rapidly digitize and move to the cloud.

Another sector, 5G wireless, is a  hot spot for Marvell, with growth up 30% sequentially for this quarter alone.

When asked about disruptions in China as Covid surges yet again, Murphy said the semiconductor industry has been dealing with disruptions for the better part of two years and still is growing. Demand is outstripping demand, he said, but every quarter they aim to produce more chips than they did last quarter.

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