We recently published a list of 10 Buzzing AI Stocks This Week. In this article, we are going to take a look at where Marvell Tech Inc (NASDAQ:MRVL) stands against other buzzing AI stocks this Week.
Paul Hickey, Bespoke Investment Group co-founder, said while talking to CNBC in a latest program that despite the market gains still concentrated in a few names, he’s bullish short and long term because of AI.
“The longer term play is the AI trade. This is an AI bull market. Every bull market has a theme, and ChatGPT was to AI what Netscape and AOL were to the internet.”
Hickey also mentioned the possible scenario where market gains would start to broaden out.
“ChatGPT didn’t invent AI; it made it tangible for consumers and businesses, just like Netscape with the internet. It caused, you know, made it a lot more practical on the part of businesses and the consumer. So I think in that respect, there’s a lot more investment to go, and we’ve seen the infrastructure stocks in AI benefit. But even just last week, some of these software names—and we’re going to slowly start to see that broaden out to the rest of the economy.”
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For this article, we picked 10 AI stocks currently buzzing on the back of latest news and analyst ratings. With each company we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Tech Inc (NASDAQ:MRVL)
Number of Hedge Fund Investors: 70
Marvell Tech Inc (NASDAQ:MRVL) shares are buzzing as the company posted strong third-quarter results.
“Next year, both custom AI silicon and electro-optics are expected to experience significant growth, leading to substantial upside to our prior estimates,” Needham analyst N. Quinn Bolton wrote in a note to clients.
Bolton added that Marvell Tech Inc (NASDAQ:MRVL)’s AI revenue is now projected to surpass the previous $1.5 billion target by “hundreds of millions of dollars,” as the company’s two main customers for custom silicon — believed to be Amazon (AMZN) and Google (GOOG) (GOOGL) — are ramping up, with Amazon likely driving much of the upside.
Marvell Tech Inc (NASDAQ:MRVL) is rapidly positioning itself as an AI-first company, with its custom silicon business accounting for 73% of Q3 revenues, up from 39% during the same period last year. Marvell has a five-year agreement with Amazon (AMZN) AWS, helping Amazon design its Trainium and Inferentia ASICs, and providing a range of optical interconnect products.
Marvell Tech Inc (NASDAQ:MRVL) is now focusing on the AI opportunity, as evidenced by the recent restructuring charges, and is progressing through the design phase of its 2nm platform.
Overall, MRVL ranks 9th on our list of buzzing AI stocks this Week. While we acknowledge the potential of MRVL, our conviction lies in the belief that under the radar 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 more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
