Top Chip Stock Marvell Technology Group Faces Challenges Despite AI Growth

Reported 12 months ago

Shares of chip designer Marvell Technology Group (NASDAQ: MRVL) have not seen the expected rise despite reporting significant growth in artificial intelligence (AI) chip sector. Marvell's revenue primarily comes from data center sales, with AI-specific products contributing to a notable increase last quarter. However, the company's diversified product offerings have led to a decline in overall sales, resulting in Marvell being unprofitable on a GAAP basis. While there are expectations for potential recovery in semiconductor sales in the second half of 2024, the stock has faced challenges compared to its competitor Broadcom. As a result, some investors are considering consolidating their holdings or exploring broader tech-focused ETFs for exposure to the semiconductor industry.

Source: YAHOO

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