20 Worst Performing AI Stocks of Last Week

6. Marvell Technology Group Ltd (NASDAQ:MRVL)

Weekly Decline: 15.13%

Number of Hedge Fund Holders: 74

Marvell Technology Group Ltd (NASDAQ:MRVL) is another semiconductor company on our list. It provides data infrastructure semiconductor solutions spanning the data center core to the network edge. It also competes with Broadcom in the custom ASICs market.

While Marvell Technology Group Ltd (NASDAQ:MRVL) performed well in the fiscal 2025 second quarter sequentially, results were less impressive when considered year-over-year. Revenue for the quarter was $1.27 billion, up 10% sequentially but down 5% year-over-year. This loss is primarily attributed to Marvell Technology Group Ltd’s (NASDAQ:MRVL) losses since GAAP diluted loss per share was reported at $0.22.

The main segments of Marvell Technology Group Ltd (NASDAQ:MRVL) that posed a challenge were enterprise networking and carrier infrastructure, with revenue for the former falling by 54% and the latter falling by 72% year-over-year. GAAP operating expenses came in at $688 million, coupled with a GAAP net loss for the second quarter of $193.3 million.

Considering the fact that Marvell Technology Group Ltd (NASDAQ:MRVL) is currently focusing on leveraging AI-driven demands in data centers, these results have been disappointing for investors, who expected more from a company operating actively in the AI space. As a result, the stock has seen declines in the first week of September, and many investors are deciding to wait and see how the stock develops further instead of buying into it right now.

A total of 74 hedge funds were long Marvell Technology Group Ltd (NASDAQ:MRVL) in the second quarter, with a total stake value of $3.6 billion.

Artisan Partners mentioned Marvell Technology Group Ltd (NASDAQ:MRVL) in its second-quarter 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in CCC Intelligent Solutions, Marvell Technology, Inc. (NASDAQ:MRVL) and Insmed. Marvell Technology is a semiconductor company offering networking, secure data processing and storage solutions to customers worldwide. We believe Marvell has among the broadest range of intellectual property in technological areas (e.g., high-bandwidth data switching and storage applications) that position it well for the growing requirements of data centers, wireless networks and autos. Several of the company’s product lines (e.g., custom silicon, optical connectivity and switching) are benefiting from the growth of AI data centers. And we believe a significant opportunity exists for the company to help design and manufacture cost-effective custom data center chips that would help cloud providers reduce their reliance on expensive graphics processing units (GPUs). Furthermore, like many other semiconductor companies, a portion of its business may be poised for a cyclical recovery after the industry’s recent inventory correction.”