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SKYT vs. MRVL: Which Semiconductor Stock is the Better Investment?
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Key Takeaways
SKYT is gaining traction through new tech platforms, quantum projects and the Fab 25 acquisition plan.
SKYT's forward P/S of 1.17X and value score of B make it attractive versus MRVL's 6.61X and value score of D.
MRVL faces margin pressure from lower-margin custom silicon and softness in industrial segments.
SkyWater Technology (SKYT - Free Report) and Marvell Technology (MRVL - Free Report) are both active players in the semiconductor space, with SKYT focusing on specialty foundry services and MRVL leading in custom silicon solutions for data centers and AI infrastructure. Each company brings unique strengths to the table, from SKYT’s co-creation model to MRVL’s large-scale hyperscaler partnerships.
With continued growth in AI, quantum computing and specialty chip demand, investors are left wondering: Which stock is the better buy right now? Let’s break down their performance and growth potential to see which offers the stronger investment case.
The Case for SKYT Stock
SkyWater Technology has been steadily building its business by focusing on new product development and strong execution. Over time, the company has benefited from its strategy of working closely with customers to move products from early development to full production. This approach has helped SkyWater Technology grow its Wafer Services segment, especially in areas like thermal imaging and diagnostics, where customer interest has been rising steadily.
The company has also been shifting away from older, legacy programs and focusing more on new technology platforms. The ThermaView platform has been a big part of this change, bringing in more business from key customers. At the same time, SkyWater is preparing to grow further through its planned acquisition of Fab 25 in Austin, which is expected to add more capacity and help support sectors like electric vehicles, medical devices and defense.
In the first quarter of 2025, SkyWater reported $61.3 million in revenues, showing a 13% increase year over year. Gross margin reached 24.2%, helped by cost improvements and a one-time benefit. The company also reported more than $4 million in adjusted EBITDA, with Wafer Services making strong contributions thanks to new product ramps.
SkyWater’s work in quantum computing has also been growing. Advanced computing now makes up 10% of total revenues, with most of that coming from quantum projects. Partnerships with companies like D-Wave and Si-Quantum are helping SkyWater expand in this space. The upcoming Fab 25 acquisition, backed by a $1 billion supply agreement, is expected to bring in immediate cash flow and support long-term growth.
The Zacks Consensus Estimate for SKYT’s 2025 loss is pegged at 1 cent per share, which has remained steady over the past 30 days, indicating a 116.67% decrease year over year. The consensus estimate for 2025 revenues is pinned at $307.15 million, suggesting a year-over-year decline of 10.26%.
Marvell Technology has been steadily gaining from strong momentum in its data center business, particularly driven by rising demand for AI applications. The company has expanded its custom silicon programs and introduced new technologies like co-packaged optics and high-bandwidth memory integration. These innovations have helped position Marvell Technology as a key supplier to major hyperscalers, with growing interest across custom compute and connectivity solutions. Partnerships, including a recent collaboration with NVIDIA on NVLink Fusion, reflect the company’s efforts to stay embedded in next-generation AI infrastructure development.
At the same time, Marvell Technology has been seeing some recovery across its traditional segments. Enterprise networking and carrier infrastructure have shown sequential improvements, while the optical interconnect business continues to grow. However, softness remains in the industrial and consumer segments. In the first of fiscal 2026, Marvell’s automotive and industrial revenues declined 12% sequentially to $76 million, while consumer revenues dropped 29% sequentially to $63 million.
In the fiscal first quarter, Marvell Technology reported revenues of $1.90 billion, up 63% year over year. Non-GAAP earnings per share grew 158% year over year to 62 cents. The data center segment contributed 76% of total revenues, with custom AI silicon playing a central role in the growth. Non-GAAP gross margin was 59.8%, and operating margin came in at 34.2%.
Marvell’s custom silicon business is growing fast, especially in AI, but it runs at lower gross margins than the rest of the company. This is weighing on overall margins. For the second quarter of fiscal 2026, Marvell expects $2 billion in revenues and a non-GAAP gross margin of 59% to 60%. While long-term AI growth remains strong, profitability could fluctuate as lower-margin custom products make up more of the revenue mix.
The Zacks Consensus Estimate for MRVL’s fiscal 2026 earnings is pegged at $2.79 per share, which has been revised upward by 4 cents over the past 30 days, indicating a 77.71% increase year over year. The consensus estimate for revenues is pinned at $8.21 billion, suggesting year-over-year growth of 42.43%.
Price Performance and Stock Valuation of SKYT and MRVL
In a month, MRVL shares have gained 7.4%, while SKYT shares have lost 5.8%. For SKYT, the one-month plunge indicates that there is more upside left in the stock, whereas for MRVL, much of the demand and growth have already been priced in.
SKYT and MRVL 1-Month Price Performance
Image Source: Zacks Investment Research
In terms of valuation, MRVL’s current forward 12-month P/S ratio of 6.61X is way ahead of SKYT’s 1.17X. This makes SkyWater a relatively cheap stock. SKYT’s Value Score of B further reinforces an attractive valuation for the stock at the moment, making it a great pick for a value investor. MRVL currently has a Value Score of D.
SKYT Shares Are Trading Cheaper Than MRVL
Image Source: Zacks Investment Research
Here’s Why SKYT Offers a Better Investment Opportunity
SkyWater offers a stronger investment case heading into 2025, driven by steady momentum in new product adoption, expanding quantum partnerships and its upcoming Fab 25 acquisition. The company’s shift from legacy programs to advanced platforms like ThermaView is unlocking new revenue streams while supporting long-term growth in sectors like defense.
While Marvell Technology continues to benefit from AI-driven data center growth, its lower-margin custom silicon and ongoing segment softness may weigh on profitability. In contrast, SkyWater’s leaner valuation, improving revenue mix and high-growth potential in underpenetrated markets make it a more compelling pick for value-focused, long-term investors.
Image: Bigstock
SKYT vs. MRVL: Which Semiconductor Stock is the Better Investment?
Key Takeaways
SkyWater Technology (SKYT - Free Report) and Marvell Technology (MRVL - Free Report) are both active players in the semiconductor space, with SKYT focusing on specialty foundry services and MRVL leading in custom silicon solutions for data centers and AI infrastructure. Each company brings unique strengths to the table, from SKYT’s co-creation model to MRVL’s large-scale hyperscaler partnerships.
With continued growth in AI, quantum computing and specialty chip demand, investors are left wondering: Which stock is the better buy right now? Let’s break down their performance and growth potential to see which offers the stronger investment case.
The Case for SKYT Stock
SkyWater Technology has been steadily building its business by focusing on new product development and strong execution. Over time, the company has benefited from its strategy of working closely with customers to move products from early development to full production. This approach has helped SkyWater Technology grow its Wafer Services segment, especially in areas like thermal imaging and diagnostics, where customer interest has been rising steadily.
The company has also been shifting away from older, legacy programs and focusing more on new technology platforms. The ThermaView platform has been a big part of this change, bringing in more business from key customers. At the same time, SkyWater is preparing to grow further through its planned acquisition of Fab 25 in Austin, which is expected to add more capacity and help support sectors like electric vehicles, medical devices and defense.
In the first quarter of 2025, SkyWater reported $61.3 million in revenues, showing a 13% increase year over year. Gross margin reached 24.2%, helped by cost improvements and a one-time benefit. The company also reported more than $4 million in adjusted EBITDA, with Wafer Services making strong contributions thanks to new product ramps.
SkyWater’s work in quantum computing has also been growing. Advanced computing now makes up 10% of total revenues, with most of that coming from quantum projects. Partnerships with companies like D-Wave and Si-Quantum are helping SkyWater expand in this space. The upcoming Fab 25 acquisition, backed by a $1 billion supply agreement, is expected to bring in immediate cash flow and support long-term growth.
The Zacks Consensus Estimate for SKYT’s 2025 loss is pegged at 1 cent per share, which has remained steady over the past 30 days, indicating a 116.67% decrease year over year. The consensus estimate for 2025 revenues is pinned at $307.15 million, suggesting a year-over-year decline of 10.26%.
SkyWater Technology, Inc. Price and Consensus
SkyWater Technology, Inc. price-consensus-chart | SkyWater Technology, Inc. Quote
The Case for MRVL Stock
Marvell Technology has been steadily gaining from strong momentum in its data center business, particularly driven by rising demand for AI applications. The company has expanded its custom silicon programs and introduced new technologies like co-packaged optics and high-bandwidth memory integration. These innovations have helped position Marvell Technology as a key supplier to major hyperscalers, with growing interest across custom compute and connectivity solutions. Partnerships, including a recent collaboration with NVIDIA on NVLink Fusion, reflect the company’s efforts to stay embedded in next-generation AI infrastructure development.
At the same time, Marvell Technology has been seeing some recovery across its traditional segments. Enterprise networking and carrier infrastructure have shown sequential improvements, while the optical interconnect business continues to grow. However, softness remains in the industrial and consumer segments. In the first of fiscal 2026, Marvell’s automotive and industrial revenues declined 12% sequentially to $76 million, while consumer revenues dropped 29% sequentially to $63 million.
In the fiscal first quarter, Marvell Technology reported revenues of $1.90 billion, up 63% year over year. Non-GAAP earnings per share grew 158% year over year to 62 cents. The data center segment contributed 76% of total revenues, with custom AI silicon playing a central role in the growth. Non-GAAP gross margin was 59.8%, and operating margin came in at 34.2%.
Marvell’s custom silicon business is growing fast, especially in AI, but it runs at lower gross margins than the rest of the company. This is weighing on overall margins. For the second quarter of fiscal 2026, Marvell expects $2 billion in revenues and a non-GAAP gross margin of 59% to 60%. While long-term AI growth remains strong, profitability could fluctuate as lower-margin custom products make up more of the revenue mix.
The Zacks Consensus Estimate for MRVL’s fiscal 2026 earnings is pegged at $2.79 per share, which has been revised upward by 4 cents over the past 30 days, indicating a 77.71% increase year over year. The consensus estimate for revenues is pinned at $8.21 billion, suggesting year-over-year growth of 42.43%.
Marvell Technology, Inc. Price and Consensus
Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote
Price Performance and Stock Valuation of SKYT and MRVL
In a month, MRVL shares have gained 7.4%, while SKYT shares have lost 5.8%. For SKYT, the one-month plunge indicates that there is more upside left in the stock, whereas for MRVL, much of the demand and growth have already been priced in.
SKYT and MRVL 1-Month Price Performance
Image Source: Zacks Investment Research
In terms of valuation, MRVL’s current forward 12-month P/S ratio of 6.61X is way ahead of SKYT’s 1.17X. This makes SkyWater a relatively cheap stock. SKYT’s Value Score of B further reinforces an attractive valuation for the stock at the moment, making it a great pick for a value investor. MRVL currently has a Value Score of D.
SKYT Shares Are Trading Cheaper Than MRVL
Image Source: Zacks Investment Research
Here’s Why SKYT Offers a Better Investment Opportunity
SkyWater offers a stronger investment case heading into 2025, driven by steady momentum in new product adoption, expanding quantum partnerships and its upcoming Fab 25 acquisition. The company’s shift from legacy programs to advanced platforms like ThermaView is unlocking new revenue streams while supporting long-term growth in sectors like defense.
While Marvell Technology continues to benefit from AI-driven data center growth, its lower-margin custom silicon and ongoing segment softness may weigh on profitability. In contrast, SkyWater’s leaner valuation, improving revenue mix and high-growth potential in underpenetrated markets make it a more compelling pick for value-focused, long-term investors.
SKYT currently sports a Zacks Rank #1 (Strong Buy), while MRVL has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.