10 AI Stocks on Wall Street’s Radar Right Now

7. 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.”