10 AI Stocks Gaining Wall Street’s Attention

5. Marvell Technology, Inc. (NASDAQ:MRVL)

Number of Hedge Fund Holders: 73

On May 27, Susquehanna lowered the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $90 from $110 and kept a “Positive” rating on the shares. Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.

Susquehanna’s rating update follows Marvell’s upcoming quarterly report. While the firm is of the view that Marvell will deliver results in line with expectations, there are concerns about the increased variability in T2 volume deployment. The firm also noted a weakened sentiment surrounding XPUs/ Inphi following the postponed Investor Day.

Originally scheduled for June 10, 2025, Investor Day was postponed due to the dynamic macroeconomic environment. The company now plans to conduct a webinar, particularly on the future of custom silicon for AI infrastructure. The company also reaffirmed its April quarter revenue midpoint of $1.875 billion in the announcement. This was viewed as underwhelming due to the modest guidance for April and strong competitor AI results.

The overall demand for data centers remains robust due to hyperscalers’ continued investment in AI. This demand is likely to benefit Marvell’s Inphi PAM4 DSPs and custom ASIC/AI products. However, the firm noted how Marvell may not be able to fully benefit from this due to a lower-than-expected implied average selling price (ASP) for its Trainium2 product and a modest quarter-over-quarter growth in the data center sector. All of these factors have led Susquehanna to maintain its cautious outlook toward the stock.