"Marvell ( NASDAQ:MRVL) is one of the hidden gems that is about to get more spotlight. The custom AI chipmaker's stock is down by more than 20% year-to-date, but its revenue and earnings have soared during this time. This mismatch, combined with insatiable demand for AI chips, suggests Marvell is an underrated AI stock. Marvell is one of the companies that produces custom AI chips for big tech. These chips can't handle every task under the sun like Nvidia's GPUs, but they address specific workloads at a much lower price."
"Marvell works with Amazon ( NASDAQ:AMZN), Alphabet ( NASDAQ:GOOG) ( NASDAQ:GOOGL), Microsoft ( NASDAQ:MSFT), and Meta Platforms ( NASDAQ:META). That customer pool offers reliable revenue that is set to expand as AI investments grow. The company has more than 10 customers, but those hyperscalers are the big four. Some rumors came out that Marvell lost AI chip business from Amazon and Microsoft, but Marvell CEO Matt Murphy denied those rumors a few days later. The rumor mill has been sketchy with AI businesses lately, such as when Oracle ( NYSE:ORCL) had to push back on rumors surrounding its OpenAI partnership and data center timelines. Marvell stock is still down from this news, presenting an opportunity for investors who like buying dips."
Marvell is a custom AI chipmaker whose stock fell more than 20% year-to-date while revenue and earnings increased significantly. The company supplies custom chips optimized for specific AI workloads at lower cost, reducing hyperscaler reliance on GPU leader Nvidia. Marvell counts Amazon, Alphabet, Microsoft, and Meta among over ten customers, providing reliable and expanding revenue as AI investments grow. Management denied recent rumors of lost business, and broader rumor noise has pressured the shares. Strong 37% year-over-year revenue growth in Q3 FY26 and opportunities to improve margins indicate potential upside despite current weakness.
Read at 24/7 Wall St.
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