We recently published a list of 10 Best Upside Stocks To Buy Right Now. In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other best upside stocks to buy right now.
On March 8, Bob Elliott, Co-Founder, CEO, and CIO of Unlimited, and Kara Murphy, CIO of Kestra Investment Management, joined ‘Closing Bell Overtime’ on CNBC to talk about the week’s market action. In a discussion on whether stocks or gold were the better choice in the current economic climate, Bob Elliott noted that stocks were facing tough circumstances due to elevated expectations at the start of the year, which had begun to adjust downward. He highlighted concerns about fiscal tightening, tariff volatility, and weaker employment conditions. However, he emphasized that these factors were overshadowed by potential tax policy changes, immigration restrictions, and efforts to curb federal spending, which could impact nominal GDP growth. Kara Murphy was asked about diversification, which is a topic that gained traction after a prolonged period where mega-caps and tech stocks dominated returns. She pointed out that diversification had been undervalued for two years but was now proving its worth as bonds and international funds outperformed US stocks. Murphy suggested that a diversified portfolio was essential for navigating the market, as it was no longer reliant on just a few high-performing stocks.
The conversation then turned to the push-and-pull between monetary and fiscal policies. Elliott discussed the volatility caused by rapid changes in policy, such as tariffs, which made it difficult for investors to have high conviction in any direction. This volatility was forcing professional money managers to reduce risk, which led to a decrease in long positions in leveraged investments and a reduction in short interest positions. Elliott highlighted the challenge of finding incremental buyers for risk assets in such an uncertain environment. Murphy reflected on the market’s valuation at the start of the year, and noted that while valuations were high, they alone were not a reliable timing indicator for market corrections. She emphasized that earnings momentum would be crucial in the second half of the year, with a potential shift in relative strength from the MAG7 stocks to other parts of the market. Murphy cautioned that high expectations meant companies needed to continue meeting those expectations to sustain market performance.
As the discussion underscored the complexities and uncertainties of the current market environment, it emphasized the importance of diversification in investment strategies.
Methodology
We first sifted through stock screeners, online rankings, and internet lists to compile a list of the best stocks with analysts’ upside potentials over 50%, as of March 10. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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).
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology Inc. (NASDAQ:MRVL)
Upside Potential as of March 10: 69.40%
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) delivers semiconductor solutions for data infrastructure. It enables the core to edge connectivity of data centers and networks. Specializing in complex SoC architectures, it offers a portfolio of Ethernet, electro-optical, storage, and processor technologies.
Wells Fargo analyst Aaron Rakers reiterated a Buy rating on the company on March 6, with a $120 price target. Rakers highlighted the company’s strong alignment with AWS’s next-generation Trainium3 program, which is expected to increase custom XPU revenue. The analyst also noted the company’s confidence in gaining market share within the Data Center segment. Furthermore, the anticipated recovery of its Enterprise Networking and Carrier segments also contributes to this positive outlook.
The company’s data center segment generated a record $1.37 billion in revenue in FQ4 2025, which was an improvement of 78% year-over-year. It was fueled by AI demand and custom silicon programs. Full-year data center revenue grew 88%. Marvell Technology Inc. (NASDAQ:MRVL) exceeded its $1.5 billion AI revenue target and anticipates surpassing $2.5 billion in FY26. Investments in advanced technologies, including 1.6T PAM DSPs and 2-nanometer silicon IP, solidify the company’s market position. Custom AI silicon programs are in high-volume production, with new design wins expected to drive growth.
Artisan Mid Cap Fund is optimistic about Marvell Technology Inc. (NASDAQ:MRVL) due to its strong AI-driven growth potential in data centers and potential for cyclical recovery. Here’s what it stated in its Q4 2024 investor letter:
“Among our top Q4 contributors were Atlassian, Spotify and Marvell Technology, Inc. (NASDAQ:MRVL). 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. The company delivered strong earnings results, driven by the company’s product lines (e.g., custom silicon, optical connectivity and switching) leveraged to AI data center growth. We believe this could be a significant opportunity for the company as it helps design and manufacture cost-effective custom data center chips that would help reduce cloud providers’ reliance on expensive GPUs. Furthermore, like many other semiconductor companies, a portion of its business may bepoised for a cyclical recovery after the industry’s recent inventory correction.”
Overall, MRVL ranks 3rd on our list of best upside stocks to buy right now. While we acknowledge the growth potential of MRVL as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high 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.
