Marvell Technology

MRVL

Market cap $76.6B

Marvell (MRVL) is a leading developer of custom AI chips, partnering with Amazon and Microsoft, and trades at a significant discount to Broadcom. MRVL's aggressive investment in R&D promises future growth for the company, despite its modest revenue compared to its competitors. The company forms one of two major custom AI chip ecosystems, offering high-risk, high-reward potential if its technology and partnerships succeed.

Broadcom and two other semiconductor companies look like good bets ahead of earnings, according to Oppenheimer analysts.

Marvell (MRVL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Growth stocks can make for excellent investments to simply buy and hold. It can take time for growing businesses to achieve their potential, but if they do, that can result in massive returns for shareholders who hang on.

Marvell Technology is well-positioned in the AI and cloud infrastructure market, focusing on custom chips and leading networking/interconnect solutions. Marvell benefits from strong demand for optical interconnects and custom silicon, with significant growth expected in both revenue and earnings for Q3. Despite competition from Broadcom and customer concentration risks, MRVL's growth in custom silicon and networking justifies a bullish outlook.

SANTA CLARA, Calif.--(BUSINESS WIRE)---- $MRVL #ACC--Marvell announced that it is expanding its industry-leading connectivity portfolio with new Marvell® active copper cable (ACC) linear equalizers.

The artificial intelligence (AI) trend isn't showing any signs of slowing down. If anything, we've seen an acceleration in the number of big long-term deals between companies to support the growing artificial intelligence industry across software developers, chipmakers, and infrastructure providers.

Marvell (MRVL -5.53%) is reporting huge increases in revenue growth due to the rising demand for data centers optimized for AI.

Marvell Technology (MRVL -5.43%) stock has jumped more than 30% since I rated it a buy roughly one month ago.

While Marvell demonstrates strong fundamentals and is strategically positioned to benefit from the AI secular trend, it remains less recognized compared to other AI winners. MRVL's recent 58% YoY revenue growth, margin expansion, and significant buybacks reflect management's confidence and effective execution. Valuation remains attractive, with forward P/E below historical averages and expectations for profit growth to outpace share price appreciation.