Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 11 stocks Jim Cramer put under the microscope recently. When a caller highlighted that the stock has received a Sell rating, Cramer commented:
“On Marvell Technology, they have a Sell?… That’s just ridiculous. Marvell’s an excellent company, and they won a lot of business for some of the hyperscalers. I don’t know. That’s crazy. Matt Murphy is doing a remarkable job. The stock is starting to act right… So, by the way, I’m leaving a twofer, is AMD. So I think… you’re on the right track owning Marvell, and that brokerage firm should rethink their negativity.”
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology (NASDAQ:MRVL) supplies semiconductor solutions for data infrastructure, with a focus on system-on-a-chip designs that incorporate analog, mixed-signal, and digital processing. The company provides Ethernet components, processors, custom semiconductors, interconnect and storage technologies, and high-speed data transfer devices. Hardman Johnston Large Cap Equity Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2025 investor letter:
“The portfolio’s off-benchmark position in Marvell Technology, Inc. (NASDAQ:MRVL) contributed negatively with a return of -44.2%. Shares of Marvell came under pressure during the release and subsequent realization of the innovations of the DeepSeek’s R1 model. DeepSeek is a Chinese AI competitor to ChatGPT and other large language models (“LLMs”) that claimed to operate at significantly lower cost. This pressured the entire AI compute and networking supply chain, and, while impressive, we believe the immediate selloff was an overreaction. The compute requirements for reasoning models like R1 should drive greater hardware demand and lower cost, as more accessible AI models should drive up adoption. This pressure was exacerbated by Marvell’s FY4Q results and FY1Q guidance that fell short of exuberant buyside expectations, as Amazon Web Services ramped its Trainium2 custom processor.”
While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
