Jim Cramer on Marvell: “I Think the Stock’s a Buy Going Into the Quarter”

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the stocks in focus this week under Jim Cramer’s game plan. Cramer was bullish on the stock ahead of the company’s earnings, as he remarked:

Marvell Tech reports on Thursday, and people are expecting big things because of its partnerships with several hyperscalers, most notably Amazon Web Services, which is selling out of its chips. The demand is so big here that it was mentioned by name in today’s, when everyone was talking about it. Marvell CEO Matt Murphy does a remarkable job. I think the stock’s a buy going into the quarter. That’s right. I’m actually recommending buying Marvell ahead of the earnings.

Photo by Anna Nekrashevich on Pexels

Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions for data infrastructure, including system-on-a-chip designs, processors, and networking and storage products. A caller sought Cramer’s advice about the stock during the February 2 episode, and he responded:

They’re an excellent company, but they’re a derivative company. They make stuff that actually competes, the main part of the business that is a little like NVIDIA, frankly, and they’re also partnered with NVIDIA. They make special chips. They make some of the best special chips in the world, as does Broadcom, by the way. All these are on the negative side.

The long side are things like Western Digital, Sandisk, because these are not in shortage, okay? They just have enough chips. They’re not like that. So what people are doing is buying the shortage stocks and selling the ones, NVIDIA, Broadcom, and Marvell, that don’t have a shortage. It’s a really stupid way to invest, but that’s what the market’s doing right now. And I’m sorry, I wish I could reverse it myself, but I can’t because Matt Murphy is a fabulous CEO at Marvell.

While we acknowledge the risk and 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. If you are looking for an AI stock that is more promising than MRVL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.  Follow Insider Monkey on Google News.