2024-07-06 06:49:00 ET
Marvell Technology (NASDAQ: MRVL) could see demand for its semiconductor solutions explode over the next few years. Marvell's products are used in a wide range of goods, from game consoles and printers to enterprise workstations and artificial intelligence (AI) servers. But data center, including AI-related products, is its largest business, totaling 40% of its revenue last year.
The growth in AI infrastructure spending could significantly benefit Marvell's revenue growth and stock performance over the next year.
The risk for investors is buying the stock before a cyclical downswing in demand, which is common for the semiconductor industry . However, the industry has experienced a lot of growth over the last 40 years, so buying shares of leading companies as they emerge from a downswing can be to your advantage.
For further details see:
2 Reasons to Buy Marvell Technology Stock Like There's No Tomorrow