Marvell Poised to Benefit from AI Growth at More Reasonable Valuation vs. Nvidia
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Nvidia's valuation is very high (27x sales, 64x earnings) due to AI/ChatGPT hype, presenting an opportunity for cheaper semiconductor stocks levered to AI growth
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Marvell Technology is a cheaper semiconductor stock (9.4x sales) seeing accelerating growth in its AI business, which could reach $1B revenue in fiscal 2025
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Marvell's overall growth should improve in fiscal 2025 based on rebounding telecom and data center markets
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Marvell's optical interconnect products position it well for the fast-growing AI server market
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At 26x fiscal 2025 earnings estimates, Marvell stock could gain 26%; more upside possible if earnings growth or multiple expands quicker amid AI momentum