We recently published a list of 14 AI Stocks Catching Wall Street’s Attention. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other AI stocks catching Wall Street’s attention.
In the latest development in the feud between OpenAI and Elon Musk, the ChatGPT maker has countersued billionaire Musk, citing a pattern of harassment. The company also asked a federal judge to stop Musk from any “further unlawful and unfair action” against OpenAI in a court case over the company’s future structure that has fueled the AI revolution.
OpenAI claims that Musk has tried “nonstop” to slow down its business for his benefit, accusing him of using “bad-faith tactics” against it to help him control AI technology.
Musk has been actively seeking to stop OpenAI from transitioning to a “for-profit” company, claiming that the transition will be a bad idea, which prioritizes commercial interests and compromises its mission of benefiting humanity.
OpenAI, however, denies these allegations. The company must complete its transition by the end of the year if it seeks to secure the entire $40 billion of its current fundraising round. If the transition fails to complete by year-end, the funding will likely be reduced to US$20 billion.
“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI,”
In response, Musk’s legal team has referred to a $97.4 billion unsolicited takeover bid from a Musk-led consortium. This bid was rejected by OpenAI.
“Had OpenAI’s Board genuinely considered the bid as they were obligated to do they would have seen how serious it was. It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”
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).
Marvell Technology, Inc. (MRVL): AI Demand Cuts Drive Target Drop Amid ASIC Forecast Reductions
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors. On April 10, Citi lowered its forecast for U.S. data center builds, cutting its price targets on AI stocks Nvidia and Marvell Technology. The firm reiterated a “Buy” rating on the stock but reduced the price target for Marvell to $96 from $122, citing concerns over Microsoft’s capital spending and broader AI demand. The firm cut its fiscal year 2027 (FY27) revenue and EPS estimates for the company by 5% and 8%, respectively. It also cited a 20% cut to AI ASIC expectations.
“Our AI ASIC cuts reflect our concerns that C2026 trainium volumes may be below our prior expectations as the company may not be the only ASIC provider for the future trainium products.”
The firm also noted that with the stock returning to pre-custom ASIC rally levels and now trading at a price-to-earnings (P/E) ratio of 13x, the bad news “is largely priced in.”
Overall, MRVL ranks 10th on our list of AI stocks catching Wall Street’s attention. 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
