Marvell Technology (MRVL) Fell Despite Strong Earnings

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -8.74 % in the first quarter, compared to the Russell 1000 Growth Index’s 4.28% return.  Stock selection in the consumer discretionary and financial sectors contributed to the relative performance of the fund in the quarter, while selection in information technology and healthcare detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) offers data infrastructure semiconductor solutions, spanning the data center core to the network edge. The one-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was 9.22%, and its shares lost 4.95% of their value over the last 52 weeks. On June 12, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $69.64 per share, with a market capitalization of $60.044 billion.

Janus Henderson Forty Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2025 investor letter:

“Semiconductor company Marvell Technology, Inc. (NASDAQ:MRVL)(NASDAQ:MRVL) was among the top relative detractors. Marvell reported strong earnings, particularly for AI products, but disappointed investors with weaker-than-expected guidance. Following exceptional Q4 performance, market expectations had become stretched. Despite the reset in growth expectations, Marvell remains one of two key providers of custom silicon for AI hyperscalers, with those relationships remaining strong.”

Analyst After Marvell Technology (MRVL) Results - ‘This Could Have Really Gone Badly’

An assembly line in a semiconductor factory, with workers at their stations.

Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the first quarter, which was 105 in the previous quarter. Marvell Technology, Inc. (NASDAQ:MRVL) reported a record revenue of $1.895 billion in the first quarter of fiscal 2026, marking a 4% sequential increase and strong 63% year-over-year growth. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Marvell Technology, Inc. (NASDAQ:MRVL) and shared Columbia Threadneedle Global Technology Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.