There’s no denying that technology powerhouse Nvidia (NASDAQ: NVDA) has been the centerpiece of the artificial intelligence (AI) movement thus far.
Its processors are the heart and soul of most data centers. Its stock has beaten the daylights out of the overall market since early 2023, when the artificial intelligence revolution reached its full stride. Shares are up more than 800% during this two-year span, versus the S&P 500′s 58% advance for the same timeframe.
However, as is always the case, things change. Competition creeps in. Technology evolves. Customers begin thinking about more specific solutions to their unique challenges, and investors’ euphoric interest in an industry leader’s stock fades.
Anyone considering stepping into — or holding on to — a stake in Nvidia might want to instead consider one of the technology industry’s other top growth prospects: Marvell Technology (NASDAQ: MRVL).
Not familiar with it? You’re not alone. Its sub-$100 billion market capitalization just doesn’t turn many heads, particularly compared to Nvidia’s $3 trillion market value. Marvell also hasn’t exactly caught the eye of many hedge funds and money managers that often have their finger on the pulse of the proverbial “next big thing.” Of The Motley Fool’s recent look at 16 different billionaires’ hedge fund holdings, the company wasn’t a major position for any of them — but maybe it should be.
Marvell isn’t a top-of-mind name for investors on the hunt for a new way to plug into the artificial intelligence movement. It’s quietly been there all along, though. This company makes everything from data center switches to hard drive controllers to the computer processors you don’t hear much about, but would certainly notice if they didn’t exist. Its tech is found in 5G connectivity equipment, automobiles, and, perhaps most notably, AI data centers that increasingly need entire walls of motherboards to work together as a single, massive digital brain.
Earlier this week, for instance, the company unveiled its new Aquila DSP (digital signal processor), which is capable of handling 1.6 trillion bits of digital data every second. This power-efficient technology can be used in densely packed data centers with up to 20 kilometers’ worth of connectivity wiring. That’s why technology market research outfit Dell’Oro Group thinks the market for this new type of data center processor will grow at an average annual clip of 200% over the course of the coming five years.
