NVDA - Should You Buy This Mysterious Nvidia Partner Before Everyone Else Does?
2024-02-02 05:20:00 ET
One of the reasons Nvidia (NASDAQ: NVDA) has been so successful in the age of data centers and artificial intelligence (AI) involves the "picks and shovels" economic theory. This theory points out that, during a gold rush, the most successful participants are less likely to be the gold hunters and more likely to be the ones selling the tools the gold miners need for the hunt. Nvidia's high-powered graphic processing units (GPU) and software are the picks and shovels of data centers and AI.
But Nvidia doesn't act alone. It has several suppliers it depends on to provide technology and materials used to make its finished products. These would be the ax and shovel head suppliers and wooden handle makers of the "picks and shovels" theory. One of these suppliers to the supplier is Marvell Technology (NASDAQ: MRVL) .
Marvell is not all that well known among retail investors. However, Citi analyst Atif Malik recently made the company his top specialty semiconductor stock , lifting it above Nvidia on his list of recommendations. One reason is probably that Nvidia's stock has already gained 208% over the last year, while Marvell is up just 53%.
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Should You Buy This Mysterious Nvidia Partner Before Everyone Else Does?