Janus Henderson Forty Fund Sold Marvell Technology (MRVL) Due to Lack of Earnings Visibility

Janus Henderson Investors, an investment management company, released its “Forty Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities surged in the third quarter on positive corporate earnings news and hopes for Federal Reserve (Fed) rate cuts. The fund returned 8.38% in the third quarter, compared to the Russell 1000 Growth Index’s 10.51% return. Stock selection in the healthcare sector contributed to the relative performance of the fund in the quarter, while stock selection in the consumer discretionary sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure. The one-month return for Marvell Technology, Inc. (NASDAQ:MRVL) was 3.45%, and its shares lost 25.95% over the last 52 weeks. On December 11, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $89.43 per share, with a market capitalization of $77.098 billion.

Janus Henderson Forty Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its third quarter 2025 investor letter:

"Semiconductor company Marvell Technology, Inc. (NASDAQ:MRVL) was a detractor from relative performance. Marvell has been a beneficiary of increasing demand for data infrastructure – primarily custom silicon – through its relationship with Amazon. However, while the company’s overall revenue and earnings growth met expectations this past quarter, data center revenues were weaker than anticipated. Additionally, the company indicated some near-term slowing in sales of custom application-specific integrated circuits. Given the lack of earnings visibility for the company, we exited the position."

Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the third quarter, which was 76 in the previous quarter. In the third quarter of fiscal 2026, Marvell Technology, Inc. (NASDAQ:MRVL) reported revenue of $2.075 billion, reflecting a 3% sequential increase and strong 37% year-over-year growth. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ: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.

In another article, we covered Marvell Technology, Inc. (NASDAQ:MRVL) and shared the list of AI stocks analysts are watching closely. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.