11 Best Semiconductor Stocks with Huge Upside Potential

Page 9 of 9

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

Analysts’ Upside Potential as of September 12: 38.58%

Marvell Technology, Inc. (NASDAQ:MRVL) released record Q2 FY2026 net revenue of $2.006 billion, which was $6 million above guidance and a 58% year-over-year growth. Non-GAAP net income climbed to $585.5 million, or $0.67 per diluted share, while GAAP net income, or $0.22 per diluted share, reached $194.8 million. The non-GAAP gross margin was 59.4%, while the GAAP gross margin was 50.4%. The cash flow from operations reached $461.6 million. CEO Matt Murphy identified strong AI-driven demand for custom silicon and electro-optics solutions, as well as recovery in business networking and carrier infrastructure, as major growth drivers.

Marvell Technology, Inc. (NASDAQ:MRVL) anticipates Q3 FY2026 revenue of $2.060 billion, following the divestment of its Automotive Ethernet division earlier this month. The estimated non-GAAP operating expenses are approximately $485 million, while the non-GAAP gross margin is between 59.5% and 60.0%. Murphy stated that Marvell Technology, Inc. (NASDAQ:MRVL)’s custom AI design activity has reached an all-time high, with over 50 new engagements across more than ten customers, preparing the business for future profit and EPS growth.

While we acknowledge the potential of MRVL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about this cheapest AI stock.

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

Disclosure: None. 11 Best Semiconductor Stocks with Huge Upside Potential is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9