On April 23, Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, joined ‘Squawk Box’ on CNBC to express that investors should have a normal level of risk in their portfolios right now. Parker explained that while he is fully in support of remaining invested in the market, he does recommend clients to stay focused on sectors that may be more resilient in a downturn to help protect against losses while staying long. His baseline guidance is for clients to maintain a normal level of risk in their portfolios. Those holding too much cash should get invested, and those overexposed to US markets and the dollar should consider adding non-US exposure. He advised that this is a period where investors must be comfortable with discomfort, as policy uncertainty broadens the range of possible outcomes.
Parker acknowledged that while downside risks are top of mind for many investors, there is also upside potential, especially if there are positive policy surprises, such as clarity on tariffs, which could drive markets back to their highs sooner than expected. His outlook for the S&P 500 index is a wide range, with the high end being flat for the year and a possible range of 5,700-6,200. This reflects heightened policy uncertainty and difficulty in pinpointing a single target. Parker pointed out that even if it takes two years for markets to return to all-time highs, an 8% annual return would still be compelling for equities. Reflecting on the start of the year, he noted that market multiples were considered rich following 2 consecutive years of 20%+ gains. There was optimism around deregulation and changes to corporate taxes, but few expected the S&P 500 to remain flat for 2 years from a level of 6,200. Parker further explained that even without pro-business policy changes, the market may have faced challenges after such strong recent gains. The pullback in high-performing segments of the US market has brought valuations closer to what he considers normal levels, which also sets the stage for potential upside.
That being acknowledged, we’re here with a list of the 11 most promising stocks according to analysts.
A financial advisor in a crisp suit analyzing an array of graphs and diagrams, with the performance of U.S. stocks at the forefront.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top stocks that had high analysts’ upside potential (at least 35%). The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Most Promising Stocks According to Analysts
11. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 117
Average Upside Potential as of April 23: 37.30%
Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through its Digital Media, Digital Experience, and Publishing & Advertising segments. It offers its solutions directly to enterprise customers through its sales force and local field offices, as well as directly to businesses and consumers. It also licenses its products to end-user customers through app stores and websites.
On April 4, Mizuho Securities maintained an Outperform rating on the stock with a $575 price target. Despite a challenging year, Mizuho highlighted the company’s recent progress in monetizing its GenAI innovations as a positive sign, as these integrations have been well-received by enterprise customers. For instance, the AI Assistant in Acrobat helps users with tasks like summarizing and editing PDFs.
The web and mobile versions of core applications in Creative Cloud, like Photoshop and Illustrator, had their paid subscriptions grow 35% year-over-year. Creative Cloud and Document Cloud are contained in Adobe’s Digital Media segment and together made $4.23 billion in FQ1, which was up 12% year-over-year. Digital Media’s ARR was also up 12.6% due to the growing subscriptions.
Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”
10. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Average Upside Potential as of April 23: 38.31%
Meta Platforms Inc. (NASDAQ:META) helps people connect and share with friends and family through its Family of Apps (FoA) and Reality Labs (RL) segments. FoA offers Facebook, Instagram, Messenger, Threads, and WhatsApp. Whereas RL provides virtual, augmented, and mixed reality-related products, which include consumer hardware, software, and content.
The company achieved a record $164.5 billion in total revenue in 2024, which is a 22% increase from 2023. Meta AI serves more than 700 million monthly users, which are supported by a 2-gigawatt AI data center and custom AI chips. Moreover, Ray-Ban Meta smart glasses and AI integration across platforms showcase Meta’s wearable tech/AI strategy. Meta has also started integrating Meta AI in Threads, WhatsApp, and Facebook for better engagement.
For FQ1 2025, Meta Platforms Inc. (NASDAQ:META) projects a revenue between $39.5 billion and $41.8 billion. On April 22, Roth MKM reiterated a Buy rating on Meta’s stock and lowered its price target to $580 from $730 despite favoring the company in general due to its AI product catalyst LlamaCon announcements, and a possible change in 2025 OpEx/CapEx guidance narrative.
Nightview Capital highlighted the company’s strong growth potential, due to its AI leadership with Llama model, advertising ecosystem, and AR capabilities. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)
9. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Average Upside Potential as of April 23: 39.21%
Broadcom Inc. (NASDAQ:AVGO) specializes in various semiconductor devices with a focus on complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V-based products. Its products are used in many enterprise and data center networking applications, like AI networking and connectivity, home connectivity, and broadband access.
On April 22, Barclays analyst Tom O’Malley lowered the price target on the stock to $215 from $260, while keeping an Overweight rating. The price target adjustment came from Barclays’ updates on semiconductor and semiconductor capital equipment models to reflect tariffs and the trade war ahead of Q1 2025 earnings. However, Broadcom exceeded January quarter estimates and provided strong April quarter projections.
In March, the company announced that it is expanding its optical interconnect solutions to support AI infrastructure. Broadcom Inc. (NASDAQ:AVGO) introduced new innovative technologies, like the advancements in co-packaged optics (CPO), 200G/lane DSP and SerDes, 400G optics, and PCIe Gen6 over optics. These solutions are designed to help grow and scale AI clusters as well as meet the growing demands of AI workloads.
Mar Vista US Quality Select Strategy is highly positive on the company and stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:
“We maintain a positive outlook on Broadcom Inc. (NASDAQ:AVGO) shares, despite recent stock price pressure stemming from two key concerns: (1) uncertainty around potential tariffs and the impact on global growth, and (2) investor skepticism regarding the return profile of large-scale AI capex investments by hyperscalers. This skepticism has been amplified by the efficiency gains recently demonstrated by DeepSeek, an unknown Chinese software company, which developed a competitive large language model at a much lower cost. These efficiency gains stoked fears that hyperscalers may have overbuilt AI infrastructure.
Broadcom maintains a strong competitive position in the custom AI ASIC market, as well as a disciplined capital allocation, most recently reflected in the VMWare acquisition. That deal is already delivering better than-expected top-line growth and margin expansion. Broadcom is the leading provider of custom AI ASICs and has been steadily diversifying its customer base beyond its initial anchor client, Alphabet. Many hyperscalers are interested in developing custom ASICs, which are tailored to specific computing tasks, given their lower costs and attractive performance attributes relative to general-purpose GPUs from providers like NVIDIA.
While we remain constructive on Broadcom’s long-term prospects, we did trim our position earlier in the quarter at higher levels to reallocate capital toward a more favorable risk-reward opportunity. Nonetheless, Broadcom remains a core holding in our portfolio and offers an attractive margin of safety. We believe the company is well-positioned to grow intrinsic value by +20% over the intermediate term.”
8. Alibaba Group Holding Ltd. (NYSE:BABA)
Number of Hedge Fund Holders: 107
Average Upside Potential as of April 23: 40.83%
Alibaba Group Holding Ltd. (NYSE:BABA) offers technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers. It has seven segments and also operates Taobao and Tmall, which are digital retail platforms. It also offers Alimama, which is a proprietary monetization platform.
On March 28, Mizuho analyst James Lee pointed out Alibaba’s strong AI strategy for enhanced internal productivity and product experiences. Alibaba has planned substantial AI infrastructure spending over the next 3 years. This is exemplified by the development of Qwen 2.5 Max, which is Alibaba’s most advanced LLM to date, with applications across various AI tasks. Qwen AI is the company’s family of LLMs, with over 90,000 derivative models.
Moreover, Barclays noted that the growth of Alibaba’s cloud business is accelerating. Alibaba Group Holding Ltd.’s (NYSE:BABA) cloud computing division improved by 13% year-over-year in FQ3 2025 due to rapid AI expansions. As the company continues to sell AI-related services to its customers, Barclays anticipates that the margins of Alibaba’s cloud unit will potentially improve going forward. The firm kept a $180 price target and an Outperform rating on the stock.
Patient Capital Opportunity Equity Strategy invested in Alibaba due to its discounted valuation and potential for Chinese stimulus. It stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) rebounded strongly in the first quarter following DeepSeek’s surprise AI product launch in early January that caught markets off guard. The development boosted expectations of improving competitiveness in a market largely considered “un-investable”. We’ve long appreciated Alibaba as it continued trading at a significant discount to its sum-of-the-parts valuation. With most investors writing off Chinese companies while our assessment of the odds of Chinese stimulus grew, we saw an opportunity to invest in a high-quality business at rock bottom prices. During this period, the company initiated both a dividend (1.0% Yield) and buyback program, repurchasing 7% of shares outstanding over the last twelve months. Unfortunately, much of the gains achieved in the first quarter have been reversed following escalating tariff tensions between the US and China. While the ultimate impact of tariffs remains uncertain, Alibaba has limited exposure to international markets with only 12% of revenue currently coming from outside of China. Though a tariff war broadly hurts economic activity and can create negative feedback loops into domestic demand, we believe Alibaba stands as one of the more insulated Chinese companies in this environment.”
7. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Average Upside Potential as of April 23: 40.88%
Amazon.com Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores internationally. It operates through three segments: North America, International, and Amazon Web Services. It offers its products through its stores. These include merchandise and content purchased for resale, and products offered by third-party sellers.
Amazon recently unveiled its new AI model, called Nova Act. This is the company’s software development kit that takes actions in a web browser on the user’s behalf to automate routine tasks, such as filling forms or extracting data without human intervention. On April 22, Goldman Sachs reiterated the stock’s rating as Buy due to its secular growth themes across Consumer Internet and Cloud Computing. However, the firm lowered its price target to $220 from $255.
The company’s customers are moving to the cloud to use AI. Amazon’s own AI chips, Tranium 2, are 30% to 40% cheaper than its competitors, which helps it attract big clients like Anthropic. Amazon Bedrock is one of the company’s key AI services, which offers various AI models. Amazon Q, which is an AI assistant, is saving companies time and money and showcases practical AI use. AWS is heavily investing in data centers for AI and expects similar spending in 2025.
Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”
6. Walt Disney Co. (NYSE:DIS)
Number of Hedge Fund Holders: 108
Average Upside Potential as of April 23: 40.90%
Walt Disney Co. (NYSE:DIS) is an entertainment company with three primary segments: Entertainment, Sports, and Experiences. It produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks.
Bernstein analysts, led by Laurent Yoon, recently reiterated an Outperform rating on Disney’s stock, while keeping a $120 price target. This sentiment came from the multifaceted nature of the company’s operations, which consist of Linear/Sports, Parks, and streaming segments, with each possessing unique challenges and opportunities.
The company is growing its digital footprint through a partnership with Epic Games. Disney invested $1.5 billion for an equity stake in Epic Games in 2024, which established Disney as a major player in the emerging metaverse space for entertainment and social interaction. Walt Disney Co. (NYSE:DIS) is reducing its 2025 content budget from $24 billion to $23 billion. Meanwhile, management expects high single-digit earnings growth for the full year, following FQ1 2025’s 40% year-over-year earnings jump.
ClearBridge Value Strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q1 2025 investor letter:
“While we had already begun to shift toward a more defensive positioning entering the quarter, we made a number of adjustments in response to the rapid-fire developments in both economic and political policy. Among our largest new positions during the period was The Walt Disney Company (NYSE:DIS), as we believe that it has turned a corner on building out its streaming service, which should help margins inflect higher and help drive better earnings than the market currently anticipates. The shift in management’s strategy, from “market share growth at all costs” to a more focused approach on improving pricing should also help to improve both profitability and margins, and we believe that there remains meaningful upside compared to other streaming service providers at similar scale.”
5. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
Number of Hedge Fund Holders: 186
Average Upside Potential as of April 23: 41.23%
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. It provides various wafer fabrication processes, such as processes to manufacture complementary metal-oxide-semiconductor logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.
In FQ1 2025, HPC made 59% of the company’s total revenue, which totaled $25.78 billion and improved by 41.40% year-over-year. This HPC revenue itself improved by 7% sequentially due to the sustained demand for AI-related applications, which the CEO of the company anticipates to double in revenue in 2025. This category of AI accelerators includes AI GPUs, AI ASICs, and HBM controllers used for both AI training and inference in data centers.
To support this explosive growth in AI and HPC, TSMC is making substantial investments in advanced packaging technologies, particularly CoWoS (Chip-on-Wafer-on-Substrate). TSMC is working to double its CoWoS capacity in 2025. Despite a projection of a mid-40% revenue CAGR from AI accelerators for the five years starting from 2024, Barclays analyst Simon Coles lowered the price target on the stock to $215 from $255 while maintaining an Overweight rating on April 21.
The company’s results and guidance showcased strong AI chip demand, which is why Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
4. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 120
Average Upside Potential as of April 23: 42.85%
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company through five segments: Retail, Texas, East, West, and Asset Closure. It serves around 5 million customers with a generation capacity of about 41,000 megawatts, with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.
The company reported a revenue of just over $4 billion in Q4 2024, which was up 31.16% year-over-year. In early March, Bank of America Securities had upgraded the stock to Buy from Neutral with a price target of $152, which was down from $164. The firm believes that Vistra Corp. (NYSE:VST) is poised to benefit from tightening markets, increasing demand, and retail growth. More recently, BofA maintained its Buy rating on VST stock and adjusted the price target from $152 to $148, on April 15.
In 2024, Vistra acquired 3 nuclear sites and gained around 1 million customers, together with 2,000 new employees. It then became the second-largest nuclear fleet in the US. Vistra also solidified its zero-carbon generation portfolio. The company made progress in several renewable projects, including battery storage and solar facilities, with over 600 megawatts of new capacity in development. Vistra is assessing nuclear fleet upgrades that could grow capacity by ~10% over the next 10 years.
ClearBridge Growth Strategy stated the following regarding Vistra Corp. (NYSE:VST) in its Q1 2025 investor letter:
“Volatility also created entry points to motivate our first purchase in the utility sector, Vistra Corp. (NYSE:VST), as well as reduce our underweight to the consumer discretionary sector with the addition of CAVA Group. Vistra is the largest competitive power generator in the U.S. with a 41 GW fleet of power plants diversified by geography and fuel sources. Long-term fundamentals of the deregulated power markets remain constructive with Vistra well positioned to benefit from continued tightening in its primary PJM (Pennsylvania, New Jersey, Maryland Interconnection) and ERCOT (Texas) markets. Pending regulatory clarity could also pave the way for additional power purchase agreements with hyperscalers and act as a positive catalyst for independent power producer stocks. These agreements, in combination with federal subsidies for nuclear plants, have the potential to improve visibility and lower earnings variability across the industry.”
3. Salesforce Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Average Upside Potential as of April 23: 50.73%
Salesforce Inc. (NYSE:CRM) offers CRM technology that connects companies and customers. One of its products includes Agentforce, which is an agentic layer of the Salesforce platform. It also offers Slack, which is a workplace communication & productivity platform, and Tableau, which is an end-to-end analytics solution for enterprise use cases and intelligent analytics.
On April 23, Piper Sandler lowered the price target on the stock to $315 from $400 while maintaining an Overweight rating. Tariff, policy, and AI adoption hurdles have led the firm to cut estimates and price targets across the cloud applications. However, Salesforce’s unified platform includes the Customer 360 platform, Data Cloud, and Agentforce AI product line. These together integrate CRM applications, data management, and AI-powered automation and drive most of the company’s growth.
In only 90 days, Salesforce Inc. (NYSE:CRM) acquired 3,000 paying customers for Agentforce. Data Cloud is the foundation for Agentforce and provides the necessary data for AI-powered automation. It surpassed 50 trillion records and doubled year-over-year. Fueled by this platform, Salesforce’s FQ4 2025 revenue rose by 8% year-over-year. Data Cloud and AI ARR grew by 120%.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) reported third-quarter results that exceeded analysts’ expectations, as the integration of AI technology across the customer relationship management software company’s product offerings has driven robust growth in new deals.”
2. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Average Upside Potential as of April 23: 62.87%
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that offers graphics and compute & networking solutions. It sells its products to various parties such as OEMs, original device manufacturers, system integrators & distributors, independent software vendors, cloud service providers, and consumer internet companies.
On April 16, Mizuho Securities maintained its Outperform rating on NVIDIA with a $168 price target. Mizuho analysts are optimistic about the company’s near-term prospects, especially with the shipment of the GB200 series and increased testing capacity for more complex GPU racks. The analysts also highlighted NVIDIA’s long-term capital expenditure in AI for the calendar year 2026.
At CES 2025, NVIDIA Corp. (NASDAQ:NVDA) unveiled major innovations in AI, gaming, and autonomous vehicles. The new GeForce RTX 50 Series GPUs, powered by Blackwell, were launched in January and February. Blackwell is designed for AI inference, with 25x higher throughput and 20x lower cost than previous models. Blackwell sales reached $11 billion in FQ4 2025. Total revenue for FY25 reached $115.2 billion, which more than doubled year-over-year.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
1. Marvell Technology Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
Average Upside Potential as of April 23: 83.08%
Marvell Technology Inc. (NASDAQ:MRVL) delivers semiconductor solutions for data infrastructure. It enables the core-to-edge connectivity of data centers and networks. It specializes in complex SoC architectures and offers a portfolio of Ethernet, electro-optical, storage, and processor technologies.
Marvell’s data center segment made a record $1.37 billion in revenue in FQ4 2025, which was an increase of 78% year-over-year. It was driven by AI demand and custom silicon programs. Full-year data center revenue also grew by 88%. Marvell Technology Inc. (NASDAQ:MRVL) exceeded its $1.5 billion AI revenue target and anticipates surpassing $2.5 billion in FY26.
While investments in advanced technologies, such as 1.6T PAM DSPs and 2-nanometer silicon IP, solidify Marvell’s market position, Stifel lowered the price target on the stock to $80 from $115 on April 17 while keeping a Buy rating on the shares. Stifel anticipates that the Analog, Connectivity, and Processors group to have generally in-line March quarter results due to tariff impacts, with even softer June quarter results.
ClearBridge Mid Cap Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2025 investor letter:
“Marvell Technology, Inc. (NASDAQ:MRVL), a networking and storage semiconductor company with a strong presence in data centers, pulled back after a strong run alongside other AI beneficiaries following the DeepSeek announcement. However, we believe that regardless of the impact of less capital and energy intensive AI models like DeepSeek, large AI hyperscalers will continue to build new and more data centers, providing Marvell with a long-term opportunity to capitalize on its position as a preferred partner in their construction.”
While we acknowledge the growth potential of Marvell Technology Inc. (NASDAQ:MRVL), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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