Marvell Technology’s Future at Stake: Morgan Stanley Lowers MRVL Price Target to $113 Amid AI Market Shifts and Export Control Issues

We’ve put together a list of the 10 AI Stocks to Watch Amid the DeepSeek Buzz. Today, let’s explore how Marvell Technology, Inc. (NASDAQ:MRVL) compares to these other AI stocks.

On Monday, US stocks took a hit after news emerged about a new AI app from a Chinese startup called DeepSeek. Major chip companies were significantly affected, losing over a trillion dollars in market value. DeepSeek’s AI model, which uses fewer resources yet outperformed OpenAI’s ChatGPT on many tests, has caused concern on Wall Street.

Adding to the commotion, DeepSeek’s AI assistant shot to the top as the most downloaded free app on the Apple Store in the US. Its success has overshadowed ChatGPT, which has led the AI race until now.

However, DeepSeek faced challenges as it announced it would limit new registrations because of a cyber-attack. Before this, the company had experienced a major website outage, its longest in 90 days. Resolved issues included log-in troubles, according to their status updates.

While the AI industry is buzzing with anxiety, analysts have mixed opinions. Some fear DeepSeek could disrupt future expenses projected to reach $2 trillion for AI spending. In contrast, Wedbush believes the concern is a temporary “tech AI head fake” and unlikely to last.

“DeepSeek created a strong LLM model. However, this small Chinese lab’s model isn’t going to take down the entire US tech world.”

Raymond James sees great potential in these AI advancements, suggesting they could drive costs lower and lessen the reliance on massive GPU clusters in the US.

“If DeepSeek’s innovations catch on, we could see a significant decrease in model training costs, questioning the need for huge GPU clusters as previously projected.”

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Web3 entrepreneur Jeffrey Emanuel noted that DeepSeek’s success indicates an industry-wide tendency to overestimate computing needs.

Meanwhile, an Oxford professor cautioned against storing private data on DeepSeek due to concerns over potential Chinese state access.

For our list of AI stocks, we analyzed news articles, stock evaluations, and press releases. These stocks are also favored by hedge funds.

Why do we follow hedge funds’ stock picks? Research shows that mimicking the choices of leading hedge funds can lead to better market performance. Our quarterly newsletter has selected stocks that returned 275% since May 2014, outperforming its benchmark by 150 percentage points.

An assembly line in a semiconductor factory shows workers at their posts.

Number of Hedge Fund Holders: 70

Marvell Technology, Inc. (NASDAQ:MRVL) is known for its semiconductor solutions, heavily focused on data centers. Recently, Morgan Stanley cut its price target for MRVL from $120 to $113 while keeping its “Equal Weight” rating. The firm remains optimistic about semiconductors but is adjusting its targets due to reactions to DeepSeek’s new AI model. They believe this could lead to reduced spending or stricter export controls.

“DeepSeek’s release shows that AI is evolving, and some developments may even lead to lower costs. But the market’s reaction will likely dictate future spending and export control policies.”

Currently, MRVL ranks 6th in our list of AI stocks to monitor amid the DeepSeek buzz. While MRVL holds potential, we believe other AI stocks may offer better returns more quickly.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article first appeared on Insider Monkey.