We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other most crowded hedge fund stocks that are targeted by short sellers.
Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?
Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.
Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.
We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 105
Short Interest: 3.08%
Marvell Technology, Inc. (NASDAQ:MRVL) operates as a data infrastructure semiconductor solutions provider. It covers the entire data center to edge infrastructure. The company offers single or multiple-core processors, a portfolio of Ethernet solutions, and custom application-specific integrated circuits.
Despite tariff concerns over tech companies, J.P. Morgan analysts identified the firm as a top pick. Analysts believe that most first-quarter earnings within the industry will meet targets. However, trade and tariff-related dynamics may lead to weaker results in the latter half of the year.
J.P. Morgan analysts, led by Harlan Sur, highlighted their concerns:
“We expect 1Q earnings season to kick off the negative earnings revision cycle with overall forward 12-month EPS estimates to be potentially cut by ~15-25% over the next two-three earning seasons, which we believe should help the semi stock bottoming process. With stocks having already declined by approximately 25% since the tariff concerns surfaced, we see the potential for further 10-15% downside in stocks over the next few months.”
Oppenheimer analyst Rick Schafer also maintained his top picks in the semiconductor industry, including Marvell as his favorite stock. The analyst thinks that AI is the safest growth vector regardless of the macroeconomic backdrop.
Schafer mentioned:
“We see tariff-related price hikes most acutely impacting end-demand for consumer products like PCs/ smartphones.”
Overall, MRVL ranks 1st on our list of most crowded hedge fund stocks that are targeted by short sellers. 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.
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