10 Best Semiconductor Stocks to Buy for the AI Boom

8. Marvell Technology Inc (NASDAQ:MRVL)

Number of Hedge Fund Holders: 70

Marvell Technology Inc (NASDAQ:MRVL), a leading fabless chip designer, specializes in wired networking and holds the second-largest market share in the segment. The company serves diverse end markets, including data centers, carriers, enterprises, automotive, and consumer sectors, with a portfolio featuring processors, transceivers, switches, and storage controllers.

MRVL is well-positioned to capitalize on the growing data center custom silicon opportunity, with its technology leadership, end-to-end solution capabilities, and strong customer traction. The company’s shares are up +82% in the last year, but there is potential for further upside as management expects its custom silicon revenue to grow significantly, from sub-$1 billion currently to around $8 billion by 2028, targeting a 20% market share of the $40 billion TAM it has identified. MRVL’s diversified product portfolio, including in emerging areas like AECs and interconnect technologies, also positions it for continued strong growth across its business segments.

Marvell Technology Inc (NASDAQ:MRVL)’s management commented on the explosive growth opportunities ahead during the Barclays 22nd Annual Global Technology Conference. Here is what they said:

“And our revenue, if you remember, at AI Day, we had indicated this year, the year — the fiscal year we’re in, we thought we’d get to something $0.5 billion of custom silicon revenue in AI. Now the reality is we’re running well ahead of that. But that just gives you an idea of we’re, call it, $0.5 billion-plus of customer AI revenue this year, and the TAM is $40 billion by calendar ’28, right? And our goal was to get about 20% share of that number. So from, call it, something sub-billion dollars today to about $8 billion in the space of, call it, the next 4-plus years, I think, that’s the goal we are looking for. And these customers are very much a big part of that. The opportunity is very large with each one of them.”