Marvell's AI Chips Fail to Provide a Big Boost to Growth, but That Could Change Soon
Marvell Technology's (NASDAQ: MRVL) stock is falling again after benefiting from Nvidia's knockout earnings in recent months. Marvell provides some essential semiconductor components for companies building computers for artificial intelligence (AI) that Nvidia graphics processing units (GPUs) power. But the problem is that non-AI chips aren't so hot right now.
That being said, Marvell upgraded its outlook for AI sales. Once a more fully fledged rebound solidifies, Marvell's financials could be in for a big rebound. Is the stock a buy now?
A few months ago after the initial Nvidia AI pop, I said to be leery of chasing Marvell stock after it ran higher on AI optimism, too. The earnings update for the second quarter of fiscal 2024 (for the three months ended in July 2023) just proved why.
Source Fool.com
