Discover Why Marvell Technology (MRVL) Just Had Its Price Target Raised: Unleashing AI Potential!

We just shared a list of the 10 AI Stocks Making Waves on Wall Street. Today, we’ll explore how Marvell Technology, Inc. (NASDAQ:MRVL) compares to these other standout AI stocks.

Ivan Tsarynny, the CEO of Feroot Security, recently appeared on CNBC’s ‘The Exchange’ to discuss TikTok. He raised concerns that China collects data on Americans through apps like TikTok, aiming to enhance its AI capabilities. Tsarynny explained that TikTok gathers information not just from users, but also from websites and other sources. Due to Chinese law, companies must comply when asked for data, which may even be kept secret. This makes it hard to know if information is shared with the Chinese government.

This sparked the Supreme Court’s decision that TikTok should be sold off. Tsarynny mentioned that while TikTok is the biggest app collecting such data, it’s not the only one. The app tracks everything users do and gathers information from their phones. While it’s challenging, users can safeguard their data with privacy tools and browser extensions that block trackers.

TikTok faced a ban over data security worries but resumed services recently after President Trump announced he’d support the app in the U.S. again. In reply, TikTok thanked Trump for ensuring that its providers wouldn’t face consequences for supporting the app, which serves millions of American users and small businesses. This occurred during a tense period in U.S.-China relations.

Meanwhile, U.S. search engine startup Perplexity AI made a bid to merge with TikTok’s parent company, ByteDance. They believe their merger proposal could succeed, as it differs from a simple sale.

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To compile our AI stocks list, we reviewed news articles, stock analyses, and press releases. These stocks are favorites among hedge funds.

Why do hedge fund stocks matter? Studies show that mimicking the investments of top hedge funds can lead to better returns. Our quarterly strategy selects 14 stocks from small and large companies, achieving a 275% return since May 2014, far surpassing our benchmark.

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

Number of Hedge Fund Holders: 70

Marvell Technology, Inc. (NASDAQ:MRVL) focuses on developing semiconductors, especially for data centers. Recently, analyst Vivek Arya from BofA raised Marvell’s price target to $150 from $140, keeping a “Buy” rating. Arya emphasized Marvell’s long-term potential in AI, particularly with custom silicon and DSPs. He expects significant growth in these fields and predicts that custom silicon could capture around 15% of the AI accelerator market. If Marvell attains a 20% share, it will be a key industry player. AI accelerators are crucial for speeding up AI tasks in data centers and cloud services.

Overall, MRVL ranks 5th among our top AI stocks. While MRVL shows promise, we believe some other AI stocks might offer even better returns in a shorter time. If you’re seeking a potentially better AI pick trading under 5 times its earnings, check out our report on the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published by Insider Monkey.