Quick Read – Marvell (MRVL) has crashed 40% from peak, which is double the semiconductor sector’s 20% drop, making it a compelling dip-buy candidate. – Tech firms are aggressively pursuing custom silicon to escape Nvidia’s premium GPU margins, a tailwind that shows no sign of…
owing. – UBS set a $340 target on Marvell, implying 64% upside, driven by the CXL business’s path to a $10 billion TAM. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn’t make the cut. Grab the names FREE today
For value investors who don’t believe the AI bubble is bursting, starting with the semiconductor industry, some of the harder-hit names within the space might be worth a closer look. Undoubtedly, there’s more to dip-buying than simply going for the biggest (or close to it) dips in any given sell-off. Either way, I do view shares of Marvell (NASDAQ:MRVL) as enticing, especially since they’ve already shed just over 40% from peak to trough while the broader semiconductor industry fell a hair north of 20%, with the iShares Semiconductor ETF (NASDAQ:SOXX) just making it into a bear market.
Not to discount how painful bear markets can be, but whenever you have an industry-wide lift-off and doubling in under a year’s time, perhaps a brutal bear market is the kind of “correction” that you’d want to see. Whether it takes an AI bubble off the table entirely remains the big question, but either way, the relief rally enjoyed in recent sessions could go either way. As a slate of big Magnificent Seven quarterly earnings results comes up, they could set the tone for the rest of the semi space, especially as hints of future spending get dropped.