What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?
Key Points
Marvell Technology stock is a solid play on the growing investment in data center infrastructure.
Marvell's revenue grew 58% year over year last quarter, driven by strong demand for custom AI chips and connectivity components.
Analysts expect earnings to grow at an annualized rate of 33% in the coming years.
- 10 stocks we like better than Marvell Technology ›
Spending on data centers is exploding as demand for artificial intelligence (AI) heats up. Nvidia has been the top beneficiary so far, but investors can broaden their exposure to the growing demand for chips and other data center components by considering Marvell Technology (NASDAQ: MRVL).
Marvell was one of the fastest-growing semiconductor companies last quarter, with revenue surging 58% year over year. The stock still trades at a reasonable valuation, making it a solid option for investors interested in the AI opportunity.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Why Marvell stock can outperform
Marvell Technology is a leader in key data center components, including custom chips and Ethernet connectivity. Data center revenue has more than doubled over the last three years and now comprises 75% of Marvell's business.
The higher data center revenue has lifted Marvell's margins. Strong revenue growth last quarter drove a significant increase in the company's adjusted operating margin. Marvell recently sold off its automotive Ethernet business to redirect investment to its data center business. Management expects this move to drive further margin expansion and earnings growth.
Analysts expect the company's earnings to grow at an annualized rate of 33%, yet the stock trades at a very reasonable 26 times next year's consensus earnings estimate. This growth could potentially double the stock's price in the next three years.
Should you invest $1,000 in Marvell Technology right now?
Before you buy stock in Marvell Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marvell Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $627,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,137,335!*
Now, it’s worth noting Stock Advisor’s total average return is 1,061% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 7, 2025
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Marvell Technology. The Motley Fool has a disclosure policy.
Recommended Articles
