Jefferies’ Top Crowded Semiconductor Long Positions: Top 10 Stocks

7. Marvell Technology, Inc. (NASDAQ:MRVL)

Number of Hedge Fund Holders In Q2 2024: 74

Shares Short % Of Outstanding: 2%

Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor firm that caters to the needs of the data center industry. This makes it unsurprising that not only are its shares up 43.29% year to date but institutional investors have also taken a long position. Some of Marvell Technology, Inc. (NASDAQ:MRVL)’s products include signal processors, storage controllers, network adapters, and switches. These provide it with broad exposure to the data center industry. This exposure has transformed Marvell Technology, Inc. (NASDAQ:MRVL)’s income statement in just a year as data center spending grows because of AI. How so? During the six months ending in July 2023, data center sales accounted for 34% of Marvell Technology, Inc.’s (NASDAQ:MRVL) $2.6 billion net revenue. Now, as of six months ending on August 3rd, 2024, the data center makes up 70% of the firm’s business through its $1.7 billion net revenue which marks a 90% annual growth. In fact, the data center is now crucial for Marvell Technology, Inc.’s (NASDAQ:MRVL) growth, as revenue from its enterprise networking, carrier infrastructure, consumer, and industrial businesses has dropped annually.

During the Q2 2025 earnings call, Marvell Technology, Inc. (NASDAQ:MRVL)’s management shared details for custom chips that could be all the buzz in the AI industry soon:

“Our AI custom silicon programs are progressing very well, with our first two chips now ramping into volume production.

Development for new custom programs we have already won, including projects with a new Tier 1 AI customer we announced earlier this year, are also tracking well to key milestones. Looking ahead to the third quarter of fiscal 2025 for our data center end market, we are forecasting revenue growth to accelerate into the high teens sequentially on a percentage basis. We expect the largest contributor to this growth will be our AI custom silicon programs as they begin to ramp meaningfully in the third quarter, further augmented by ongoing growth from our optics portfolio.”