Melius Steps Back From Marvell (MRVL) – Here’s Why the Buy Case Faded

We recently published a list of 10 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other best AI stocks on latest news and ratings.

Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. On May 22, Melius Research revised its rating for the stock from Buy to “Hold” while maintaining the price target at $66. Moving to the sidelines, the firm mentioned in a research note how this call hasn’t worked out.

Melius Steps Back From Marvell (MRVL) - Here’s Why the Buy Case Faded

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

The firm expressed concerns about Marvell’s future performance, pointing out that there is a risk that shares stay range-bound or simply don’t perform well as compared to the bulk of its semis and hardware coverage for the rest of 2025-26. A slower ramp of Amazon’s Tranium means not much revenue upside in calendar 2025, while the case for upside in 2026-28 is blurred by Marvell’s roles in AWS’s Trainium 3 and 4 accelerators.

Overall, MRVL ranks 6th on our list of best AI stocks on latest news and ratings. 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 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.

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