ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Though initially positive, stories on possible tariffs, global trade conflict, and a rotation out of AI-related tech firms sent equities lower in the first quarter. In this environment, the ClearBridge Mid Cap Strategy underperformed the benchmark, Russell Midcap Index in the quarter, due to idiosyncratic headwinds, strengthened by the market volatility; put pressure on several of strategy’s technology and industrial holdings. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first quarter 2025 investor letter, ClearBridge Mid Cap Strategy emphasized stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) offers data infrastructure semiconductor solutions, spanning the data center core to the network edge. The one-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was -23.17%, and its shares lost 24.73% of their value over the last 52 weeks. On April 10, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $52.87 per share with a market capitalization of $45.789 billion.
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.”
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the fourth quarter compared to 70 in the third quarter. Marvell Technology, Inc. (NASDAQ:MRVL) reported a record revenue of $1.817 billion in the fourth quarter of fiscal 2025, above the midpoint of guidance, surging 20% sequentially and 27% year-over-year. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Marvell Technology, Inc. (NASDAQ:MRVL) in another article, where we shared the list of NASDAQ stocks with the highest upside potential. In Q4 2024, Marvell Technology, Inc. (NASDAQ:MRVL) boosted the ClearBridge Mid Cap Strategy’s performance as its price rallied amid investor enthusiasm for generative AI. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.