Jim Cramer’s December Portfolio: Top 10 Stocks to Watch

3. Marvell Technology Inc (NASDAQ:MRVL)

Number of Hedge Fund Investors: 70

Jim Cramer in a latest program discussed Marvell Technology Inc’s (NASDAQ:MRVL) latest earnings and said the company is winning because of its custom chip design deals with big companies like Amazon, Google and Microsoft.

“I also tell you that Marvell Technology Inc (NASDAQ:MRVL) has these companies—they have Meta, they have Google, they have Microsoft. They are in a game, set, match against everybody else.”

Cramer also said Marvell CEO  Matt Murphy is the “most competitive guy I can come across.”

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.

Artisan Mid Cap Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q2 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in CCC Intelligent Solutions, Marvell Technology, Inc. (NASDAQ:MRVL) and Insmed. 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. Several of the company’s product lines (e.g., custom silicon, optical connectivity and switching) are benefiting from the growth of AI data centers. And we believe a significant opportunity exists for the company to help design and manufacture cost-effective custom data center chips that would help cloud providers reduce their reliance on expensive graphics processing units (GPUs). Furthermore, like many other semiconductor companies, a portion of its business may be poised for a cyclical recovery after the industry’s recent inventory correction.”