Marvell Technology (MRVL) Rallied on Investors’ Enthusiasm Over Generative AI

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fourth quarter was turbulent for mid-size stocks, which surged following the election and interest rate reductions before holding steady as the market shifted back to large cap leadership. The strategy outperformed its Russell Midcap Index during the fourth quarter driven by strong stock selection among IT and industrials holdings. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, ClearBridge Mid Cap Strategy emphasized stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) offers data infrastructure semiconductor solutions, spanning the data center core to the network edge. The one-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was -13.99%, and its shares gained 32.43% of their value over the last 52 weeks. On February 26, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $94.90 per share with a market capitalization of $82.12 billion.

ClearBridge Mid Cap Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q4 2024 investor letter:

“Stock selection in IT was the greatest contributor to performance on strength in AppLovin andMarvell Technology, Inc. (NASDAQ:MRVL). Marvell, a networking and storage semiconductor designer, participated in the late-year rally share price rallied on the back of investors’ enthusiasm for generative AI growth acceleration due to its position as a key supplier of custom silicon solutions for hyperscale data centers and AI infrastructure.”

Marvell Technology, Inc. (MRVL): Positioned for AI’s “Sputnik Moment” in the Semiconductor Industry

An assembly line in a semiconductor factory, with workers at their stations.

Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the fourth quarter compared to 70 in the third quarter. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Marvell Technology, Inc. (NASDAQ:MRVL) and shared the list of hot AI stocks to watch. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.