We recently published a list of the Top 10 AI Stocks on Investors’ Radar. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other AI stocks that are on investors’ radar.
China’s artificial intelligence sector is evolving into a fiercely contested arena. It hasn’t been long since artificial intelligence startup DeepSeek introduced its low-cost yet efficient AI models, shaking up the tech world. Ever since, several other companies have joined in, intensifying the race. In the latest news, Chinese tech giant Tencent has launched the official version of its T1 reasoning model, marking a step forward in the nation’s accelerating AI push.
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According to The South China Morning Post, the new artificial intelligence (AI) reasoning model, Hunyuan T1, rivals DeepSeek’s R1 in performance and pricing. Tencent’s model leverages large-scale reinforcement learning, a technique which has also been employed by DeepSeek in its R1 reasoning model. According to the company, the upgraded T1 model features faster response times and improved capabilities for handling extended text documents.
T1 can “keep the content logic clear and the text neat and clean”, the post said, while the hallucination rate is “extremely low”.
The T1 has been officially released after the beta run of the T1 preview on Tencent’s chatbot Yuanbao. It scored 87.2 points on the Massive Multitask Language Understanding (MMLU) Pro benchmark, a test that thoroughly assesses large language models’ language comprehension and reasoning across diverse domains. The score beat DeepSeek-R1’s 84 points but trailed the 89.3 points achieved by OpenAI’s o1, according to South China Morning Post’s report.
Tencent has claimed to be the first in the industry to adopt a hybrid architecture combining Google’s Transformer and Mamba. This architecture has been developed by Carnegie Mellon University and Princeton University. According to the company, the hybrid approach “significantly reduces training and inference costs” by cutting memory usage.
The company further praised T1 as “significantly reducing resource consumption while ensuring the ability to capture long text information”. T1 offers a 200 percent increase in decoding speed.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is 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).
A close up of a circuit board, its microchips creating a powerful computing system.
Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors. On March 22, CNBC reported that Bank of America is recommending investors buy the dip in a slew of buy-rated tech stocks, one of which is Marvell Technology. Analyst Arya sees a slew of positive catalysts for the company.
After hosting CEO Matt Murphy for a series of meetings, the firm came away with a “reassuring tone in [the] near & longer-term growth outlook.” There is also a large data center opportunity for the company, noted Arya. The firm has a “Buy” rating on the stock with a price target of $120.
“We expect the overall data center TAM [total addressable market] to be raised towards ~$100bn with continued targeting of 20% share over time,” he added. In addition, Marvell has a much anticipated analyst day in June where it could raise its growth forecast. Meanwhile, shares of the company are down 37% this year and remain attractive.”
Marvell “Confident tone in AI opportunity, capability, execution. … .Reassuring tone in near & longer-term growth outlook. … .MRVL could raise growth opportunity at next analyst day. … .We expect the overall data center TAM to be raised towards ~$100bn (20% of $500bn long-term AI opportunity) with continued targeting of 20% share over time.”
Overall, MRVL ranks 6th on our list of AI stocks that are on investors’ radar. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that some 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.
