Marvell Technology, Inc. (MRVL) - Downgraded Amid Client Losses and Uncertainty

We recently published a list of 10 AI Stocks on Wall Street’s Radar Right Now. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other AI stocks on Wall Street’s radar right now.

According to a state media report, China’s President Xi Jinping has pledged “self-reliance and self-strengthening” to develop artificial intelligence in China. The country is eagerly competing with the United States for supremacy in the AI arms race. Xi has stressed that China should be leveraging its “new whole national system” to push forward with the development of AI.

“We must recognise the gaps and redouble our efforts to comprehensively advance technological innovation, industrial development, and AI-empowered applications.”

READ NEXT: 10 AI Stocks Getting Wall Street’s Attention Right Now and  10 AI Stocks in the Spotlight This Week.

With the emergence of DeepSeek and other artificial intelligence models that have followed, many experts are of the belief that China has already covered much of the AI development gap it had with the United States.

“We must continue to strengthen basic research, concentrate our efforts on mastering core technologies such as high-end chips and basic software, and build an independent, controllable, and collaborative artificial intelligence basic software and hardware system.”

-Xi Jinping.

Xi is also of the belief that AI shouldn’t be a “game of rich countries and the wealthy. Rather, he believes in more international governance and cooperation on AI.

In his recent visit to Shanghai, he underscored China’s leading role in the “Global South,” calling for more innovation, support for AI startups, and stronger global influence in technology. He also urged the city to expand its exploration of AI models and noted that more supportive policies for the technology should be rolled out.

Visiting the Shanghai-based New Development Bank, a multilateral lender of BRICS member nations, he affirmed how China is ready to strengthen project cooperation with the bank and share development experience with other member countries. The visit underscores Xi’s commitment to positioning China as the leader of the Global South.

“China wants to offer an alternative to the world against the U.S.-dominant global order.”

– Alfred Wu, a China expert at National University of Singapore.

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. (NASDAQ:MRVL)

Number of Hedge Fund Holders: 70

Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. On May 7, Cantor Fitzgerald downgraded the stock to “Neutral” from Overweight and cut its price target to $60 from $125. Cantor expressed concerns regarding its future custom silicon business and key client defections.

“While we believe the meaningful sell-off of MRVL shares since peaking in January reflects loss of Trainium Gen3 AMZN, we do not believe it reflects loss of MSFT Maia Gen3 — which we are hearing will happen from our industry checks.” Cantor wrote.

It explained how Amazon’s shift of some of its next-generation Trainium chips to another supplier, Alchip, may mean that Marvell’s custom silicon designs may lose traction. Meanwhile, Microsoft is believed to be transitioning its Gen3 Maia chips to Broadcom. Besides this, the firm also said it doesn’t like Marvell management delaying its investor day.

“We had hoped to hear about new potential wins at the coming Investor Day, but with mgmt delaying the event, we suspect there is not too much good news to share.”

Overall, MRVL ranks 7th on our list of AI stocks on Wall Street’s radar right now. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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