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Cramer Defends Marvell Technology Despite Weak Stock Performance
1 Aug
Summary
- Marvell Technology stock down 32% YTD despite AI-related tailwinds
- Cramer believes Marvell should have performed better, calls it a "giant company"
- Cramer says AI chips are "on fire" and the stock market is reacting positively
According to the article, Marvell Technology, Inc. (NASDAQ:MRVL), an American chip designer, has seen its stock price decline by 32% year-to-date. This poor performance has failed to signal the sizable AI-related tailwinds that the company is experiencing.
In his recent comments, Jim Cramer, the well-known financial analyst, has defended Marvell Technology's stock. Cramer previously dismissed the poor share price performance and commented that the stock should have gone higher. This time, he discussed the stock's performance in the context of the broader AI-led market gains.
Cramer stated that "the AI-related chips are on fire today" and mentioned Marvell as one of the companies benefiting from this trend. He believes that the stock market is "reacting incredibly positively to stuff" related to AI, and he thinks those who don't want to react to it or consider it valuable are "crazy."
Cramer's previous remarks about Marvell Technology were also positive, as he believed the company's CEO, Matt Murphy, had done a "terrific job" and that the stock could be "ready to roll." However, he acknowledged that the stock might be affected by the weak guidance from Texas Instruments, a similar company in the industry.
Despite Cramer's defense of Marvell Technology, the article suggests that some AI stocks may hold greater promise for delivering higher returns and have limited downside risk. Investors looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring are advised to check the free report on the best short-term AI stock.
