Unlocking Marvell Technology (MRVL): Jim Cramer’s Insights on AI’s Impact and Market Dynamics

Jim Cramer Weighs In on DeepSeek AI and 12 Stocks discusses the current state of Marvell Technology, Inc. (NASDAQ:MRVL) in light of the recent DeepSeek AI sell-off. Let’s see how it compares to other stocks Cramer highlighted.

Recently, investors saw a 17% dip in a popular AI GPU stock. This was largely due to worries about DeepSeek, a Chinese AI startup. In response, Jim Cramer shared his thoughts, stressing the importance of upcoming GPU orders for the company.

Cramer also mentioned “traveler stocks,” referring to those that have benefited from the positive buzz around AI. He noted that falling values in these stocks could indicate market instability. Cramer expressed concern that this collective decline might signal inflated expectations that need to be adjusted.

He talked about his experience with DeepSeek’s R-1 model, expressing disappointment in its performance. While he is a fan of ChatGPT, he found R-1 lacking, especially when it couldn’t retrieve specific historical data, which he believed should be possible.

Cramer pointed out censorship issues with R-1, describing how it initially acknowledged a well-known photo of the “Tank Man” before backtracking and claiming it couldn’t assist. This raised questions for him about the product’s reliability.

When asked about investing in AI stocks, Cramer admitted uncertainty. He suggested it’s okay to admit when you don’t have all the answers. He reflected on whether you should bet against giants like Zuckerberg or Ellison, ultimately acknowledging his own doubts.

With many tech stocks seeing steep declines, Cramer noted the recent surge in healthcare stocks as an interesting shift worth considering. Despite these ups and downs, he emphasized the unpredictability of the market.

Our Methodology

To compile the list of stocks Jim Cramer discussed, we focused on his commentary from CNBC’s “Squawk on the Street” aired on January 27th. We tracked hedge fund interest in these stocks since research indicates that following top hedge fund picks can lead to better investment outcomes.

Marvell Technology, Inc. (NASDAQ:MRVL) specializes in semiconductor chips and has greatly benefited from the AI boom. However, it faced a significant 19% drop amid the market’s turmoil. Cramer referenced a recent upgrade from Melius Research, which projected a price target of $188 for the stock.

“According to Melius, Marvell has huge potential, but some expectations may need to be adjusted.”

Currently, MRVL ranks 7th among the stocks that Cramer discussed regarding the DeepSeek sell-off. While it has promise, some other AI stocks may offer better returns in a shorter time frame.

Number of Hedge Fund Holders In Q3 2024: 70

Marvell is a key player in AI chip production. Despite its recent struggles, its ability to provide chips for AI workloads keeps it on investors’ radar. Cramer’s remarks highlight both potential and caution as the market recalibrates.

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