Marvell Technology, Inc. (MRVL) gains momentum with AI-driven growth and higher price target from Morgan Stanley

We recently compiled a list of 10 AI news dominating Wall Street today. In this article, we’ll take a look at how Marvell Technology, Inc. (NASDAQ:MRVL) stands compared to other AI stocks dominating Wall Street.

The generative AI market, a key area of ​​artificial intelligence, is revolutionizing entire industries today. According to ResearchAndMarkets.com, the Gen-AI market was valued at USD 20.21 billion in 2023 and is expected to reach USD 440 billion by 2032. This implies a staggering CAGR of 41.31% for the forecast period from 2024 to 2032.

Read now: 10 AI News Investors Should Miss and 12 AI Stocks Dominating Wall Street News and Ratings

According to the report, the North America region will lead the generative AI market with a share of 34% in 2023. Its robust technology ecosystem, skilled workforce, and increasing demand for AI-powered content are responsible for its top market share. The European region is also experiencing growth due to government funding, startup innovation, and region-specific applications.

Back in 2022, the generative AI market was dominated only by established players. These established players account for 88% of the market share, while startups account for only 12%. This situation is currently changing, with more players entering the market each year.

Highlighting advances in artificial intelligence, Sam Altman, CEO of AI company OpenAI, says the next innovations in AI will be more disruptive than people imagine. Speaking at the New York Times’ Dealbook Summit in New York City, he said the industry may start to see more examples of artificial general intelligence (AGI). Artificial general intelligence (AGI) refers to the virtual intelligence of machines similar to humans. As 2025.

“I think it’s possible… In 2025, there will be a system that we’re looking at… and people will say, ‘Wow, that’s going to change what I was expecting.’ .”

Altman noted that initially, the effects of AGI implementation and intelligence levels beyond it will be minimal. However, it would later become “more intense than people think.” In the latest advancements in AI, OpenAI has now begun testing new inference AI models, o3 and o3 mini.

This signals increased competition from rivals such as Google to create smarter models adept at solving complex problems. Altman said OpenAI plans to launch the o3 mini by the end of January, followed by the full o3. The enhanced model aims to outperform existing models and drive new investment and user growth.

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The new o3 and o3 mini models are currently undergoing in-house safety testing and are expected to be more powerful than the o1 model. OpenAI has sparked a competitive AI arms race, forcing technology companies around the world to accelerate the development of cutting-edge AI technologies.

In this article, we selected AI stocks based on news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).

Assembly line at a semiconductor factory. There are employees at the station.

Number of hedge fund holders: 70 people

Marvell Technology, Inc. (NASDAQ:MRVL) is engaged in the development and production of semiconductors. On December 20, Morgan Stanley analyst Joseph Moore raised his price target on Marvell Technology from $102 to $120 and maintained an “equal weight” rating on the stock. According to the company, the semiconductor industry is an attractive industry that leads the artificial intelligence market. The company expects “the U-shaped bottom to continue to play out in other regions,” as stated in its 2025 industry outlook. Marvell reported third-quarter 2025 revenue of more than $1.5 billion, reflecting 7% year-over-year growth. Strong demand for AI technology was a key driver of this growth. Notably, data center revenue, driven by AI products, grew 98% year over year and accounted for 73% of total revenue.

Overall, MRVL ranks #3 on the list of AI stocks that dominate Wall Street today. While we acknowledge the potential of MRVL as an investment, we believe that some AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you’re looking for AI stocks that have better prospects than MRVL but trade at less than 5x earnings, check out our report on the cheapest AI stocks.

Read next: BlackRock’s 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.

Disclosure: None. This article was originally published on Insider Monkey.