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We recently published a list of 10 Hottest Mega-Cap Stocks of 2025. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other hottest mega-cap stocks of 2025.
In 2024, companies poured money into Artificial Intelligence infrastructure in a bid to outpace each other in the AI race. The communication services and information technology sectors led the the large-cap stocks in terms of returns. AI-driven hype was so significant that for the first time since 1998, the S&P’s large-cap index registered two consecutive years of 20%+ gains.
2025 may well be the year of reckoning for AI. Some analysts have questioned the massive AI spending throughout the last year. Their concerns and predictions were dealt a reality check though when Bill Gates’ tech giant announced it planned to spend $80 billion on AI in fiscal 2025. Consequently, semiconductor stocks rallied, reminding everyone that the AI rally wasn’t over by any means.
Not surprisingly, the list is dominated by chipmakers, who we believe will be critical to the market’s returns this year. To come up with the 10 hottest mega-cap stocks of 2025, we considered stocks with at least $75 billion market capitalization.
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL)
Marvell Technology Inc. (NASDAQ:MRVL) had a superb last quarter, gaining over 63%. The company’s fiscal third quarter (Aug-Oct) saw it almost double its data center revenues, giving it a solid footing to catch some of the AI infrastructure spending by tech companies.
This is a deliberate move by the chipmaker, which recently shifted its focus to custom chips and networking equipment. Some of the major tech companies in the US required powerful custom chips to improve their LLM training processes. Going forward, companies will move from LLM training to inference but they will still require the powerful chips that Marvell Technology (NASDAQ:MRVL) makes.
Management expects an increasing demand due to the nature of inference. Inference requires an increasing number of clusters, which are interconnected computing resources that help run the AI tasks. Marvell provides the equipment for this interconnection, and therefore benefits from this shift in focus of the major tech companies. As technologies involving autonomy improve, this demand will increase, making Marvell Technology (NASDAQ:MRVL) one of the hottest stocks to look forward to in 2025.
Overall, MRVL ranks 5th on our list of hottest mega-cap stocks of 2025. While we acknowledge the potential of MRVL as a leading AI 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 as promising as MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.