How Marvell Surpassed Nvidia to Become Citi's Preferred Choice in the Chip Stock Arena

byAdmin •January 19, 2024

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Step aside, Nvidia Corp! According to a Citi analyst, another player in the chip game might steal the spotlight this year.

In a no

te released on a sunny Friday morning, Citi's Atif Malik gave Marvell Technology Inc.'s stock a promotion, making it his top choice among specialty chips and pushing Nvidia's stock to the second spot.

Malik is pretty optimistic about Marvell's prospects in 2024. They're into selling all sorts of tech goodies like compute, networking stuff, storage, and those fancy custom semiconductor things. According to Malik, the name Marvell is like a nod to the artificial intelligence craze. He believes their shares could go higher because of the AI optics market growth and the sales of these custom application-specific integrated-circuit AI projects.

But that's not all. Malik thinks Marvell might hit a low point in noncloud markets, especially in things like enterprise networking. He wrote about it earlier in January, saying, “Marvell predicts overall enterprise networking demand is a couple of quarters away from bouncing back. The U.S. economy seems to be holding up better than other places, especially with those long-term drivers like speed upgrades.”

Just so you know, Malik thinks Marvell's stock is a good buy. He also has a buy rating for Nvidia's shares. But here's the twist – Nvidia had this impressive 20%+ stock run before CES, the big tech show. Malik had his eye on it for a positive catalyst for 30 days.

Sure, both stocks have already been on a roll in 2024. Marvell's up 15%, and Nvidia's leading with 17%.

Jordan Klein, an analyst at Mizuho, dropped a note on Friday. He said, "If you're a relative manager trying to keep up with the benchmark and you're not loading up on Nvidia (+15% YTD), AMD (10%), or Marvell (13%), it's going to be a tough race since Nasdaq COMP and S&P 500 SPX are basically snoozing."