Jim Cramer: Marvell Wins From the Verizon-Samsung Deal
Samsung has won a $6.6 billion 5G contract from Verizon.
The company has inked a huge contract with Verizon to help Verizon build its 5G wireless network.
In a statement, Samsung said, "With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance mobile experiences for Verizon’s customers."
Samsung will provide Verizon with network equipment and installation and maintenance.
Per the regulatory filing, Samsung and Verizon's contract will run through the end of 2025.
But, according to Jim Cramer there's one big winner out of this that isn't Verizon or Samsung.
Cramer says that it's Marvell that walks away with a win.
Well, it's all about the 5G play.
"Our thesis on MRVL is heavily predicated on Marvell's integral role in the 5G cycle. As noted in our initiation alert, we believe that the 5G upgrade cycle remains in early stages and that from an infrastructure viewpoint, which Marvell plays to by creating the network that needs to be built and running to support all of the new, Marvell will benefit as 5G enabled devices begin coming to market over the next several years," the team at Action Alerts PLUS wrote in their weekly round-up last week.
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