We recently compiled a list of the 7 Stocks that Jim Cramer Recently Discussed. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against the other stocks that Jim Cramer has recently discussed.
Jim Cramer, host of Mad Money, recently addressed how investors can sometimes lose sight of the broader market perspective. He reminded his audience that the key to successful investing is simple: buy good stocks at reasonable prices and sell poor-performing stocks, even at a loss.
“Sometimes we forget what we are trying to do around here. We’re looking to find good stocks at good prices and buy them. We want to sell bad stocks at any price and kick them out of our portfolio.”
Cramer also touched on the current market environment, noting that we’re nearing the beginning of a rate-cutting cycle. While some may argue it’s not yet a cutting cycle, Cramer believes it is, regardless of whether it proceeds gradually. He pointed out that there’s another important factor to consider, an environment that is heavily oversold.
“We know that there are inflationary tariffs in the wind, but we don’t know their size, their breadth or their impact, but that’s why we’re already oversold. People saw this coming, they were worried and they took action ahead. They dumped stocks so they wouldn’t be long or own as much when the meeting (Fed meeting) occurred.”
READ ALSO: 6 Stocks Jim Cramer Talked About This Week and Jim Cramer’s Lightning Round: 7 Stocks to Watch.
As Cramer looked at the market, he expressed his focus on identifying high-quality stocks that have seen significant declines. He noted that, in a market that has already experienced substantial gains, the only place to find true value is among the laggards. Specifically, he pointed to the healthcare sector, where 62 healthcare stocks in the S&P 500 are currently down by an average of 19.7% from their peaks. Cramer acknowledged that some of this decline is tied to real risks within the sector, such as President-elect Trump’s focus on addressing middlemen in the drug industry, including pharmacy benefit managers and drug distributors. However, he believes much of the risk has already been priced into these stocks, making them potentially attractive investments at this point.
Cramer also drew attention to the medical device and technology sector, where stocks are on average down 17.6% from their highs.
“Now the goal is to build a position that starts somewhere well below where it was, simply because it has gone out of style in the current version of the Wall Street fashion show and is being hit with heavy end-of-the-year tax selling… You know why you do this? Because of the overarching principle behind good investing, buying low so that one day you can sell high, or maybe not sell at all.”
An assembly line in a semiconductor factory, with workers at their stations.
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on December 17. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Cramer highlighted Marvell Technology, Inc.’s (NASDAQ:MRVL) progress in its custom silicon business, which he said was responsible for its stock gaining.
“… There’s also been some important pin action in the group since then. First, what Broadcom had to say last week about the success of the custom accelerator business, that echoed similar commentary from Marvell Technologies, which we had on the show last night. Marvell reported solid results over this month and also made similarly bullish comments about the trajectory of the custom silicon business. And that’s why that stock jumped 23% in a single session after it reported earlier this month, and then jumped another 10% last Friday in response to Broadcom’s quarter.
… Marvell CEO, Matt Murphy, told us last night, this market’s gonna be big enough for a number of winners. … Customers buy Marvell or Broadcom and they buy Nvidia too. It is so not a zero-sum game, and I’ve done so much research on this, people. It just isn’t. It’s a win for everybody.”
Marvell (NASDAQ:MRVL) is a semiconductor company specializing in solutions for data infrastructure, offering a broad range of products designed to meet the needs of modern data centers. The company is well-positioned to benefit from the rapid expansion of large-scale data centers as it projects a market opportunity of $75 billion by 2028.
During the third quarter of its fiscal 2025, it reported a revenue of over $1.5 billion, reflecting a 7% growth from the previous year. A significant driver of this performance was the strong demand for AI technologies. Of the total sales, $1.1 billion came from the data center sector, which saw an impressive 98% year-over-year increase. This surge in AI-driven demand contributed to the company’s better-than-expected performance and outlook.
Looking ahead, Marvell (NASDAQ:MRVL) expects total sales growth to accelerate, projecting a 26% increase in the next quarter, reaching $1.8 billion. Additionally, CEO, Matt Murphy is optimistic about the company surpassing its full-year AI revenue target of $1.5 billion and forecasts $2.5 billion in AI chip sales for the next fiscal year.
Overall, MRVL ranks 4th on our list of stocks that Jim Cramer has recently discussed. While we acknowledge the potential of 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 time frame. 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.