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.
Despite it still lagging behind peers like Intel (NASDAQ: INTC) and Broadcom (NASDAQ: AVGO), the company delivered guidance that exceeded Wall Street expectations, causing a notable post-earnings stock surge. During a recent episode of The AI Investor Podcast, Eric Bleeker and Austin Smith examined Marvell's role in custom accelerators, interconnects, and strategic acquisitions, which provide exposure to high-growth sectors like AI and data infrastructure.
Global markets have fallen after a tech sell-off that fuelled Wall Street's worst day in a month and weak economic data in China showing an unprecedented slump in investment. Japan's tech-heavy Nikkei fell 1.8% on Friday, South Korea's Kospi plunged 2.6% and there was a 1.5% fall in Australia, after a torrid day on Wall Street as Nvidia and other tech companies tumbled over valuation concerns.