Marvell Technology Inc. Emerges as Top Specialty Chip Pick for 2024

Move over, Nvidia Corp. A different chip name could be a bigger winner this year, according to a Citi analyst.

Marvell Technology Inc: A Promising Stock in the Specialty Chip Market

Citi’s Atif Malik has elevated Marvell Technology Inc.’s stock MRVL, +1.20% to his top specialty chip pick in a Friday morning note, bumping Nvidia’s stock NVDA, +0.91% to the No. 2 position.

A Play on the Artificial Intelligence Boom

Malik sees great potential for Marvell in the coming years. The company specializes in selling compute, networking, storage, and custom semiconductor offerings. This positions them well to benefit from the artificial intelligence boom. Malik specifically mentions the growth in the AI optics market and the increasing sales of custom application-specific integrated-circuit AI projects.

Trough for Noncloud Markets Could Boost Marvell

Furthermore, Marvell is expected to see improved performance in noncloud markets, particularly enterprise networking. Malik notes that there might be a trough in demand for these markets, and he anticipates a recovery in the next couple of quarters.

Positive Outlook for Marvell

Matik, another analyst at Citi, has a buy rating on Marvell as well. He mentions that speed upgrades in enterprise networking remain long-term drivers, particularly in the U.S. Matik also highlights that Nvidia enjoyed a significant stock run into CES, the giant technology trade show.

Impressive Performance for Marvell and Nvidia

Both Marvell and Nvidia have already experienced strong rallies at the beginning of 2024. Marvell's stock is up 15% year-to-date, while Nvidia's stock is ahead by 17%.