Temperatures may be trending lower now with the dog days of summer behind us, but one thing that remains red hot is investors' enthusiasm for artificial intelligence (AI) stocks. This has led to many AI stocks achieving lofty valuations; consequently, those looking for both AI exposure and value opportunities are struggling to identify opportunities.
But not all hope is lost. In fact, shares of AI specialist Marvell Technology (MRVL +3.88%) represent a great bargain opportunity right now.
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Analysts' dour take doesn't mean the stock's a dud
There's no mystery as to why Marvell stock has plummeted recently. Many AI companies are posting huge growth in quarterly reports, driving investors to buy these stocks to in droves. Broadcom is one of the latest examples, with shares soaring on news of strong AI revenue growth.
Marvell, however, disappointed analysts when it reported second-quarter 2026 financial results. Although the company posted data center revenue of $1.49 billion, a 69% year-over-year increase, management projected Q3 2026 data center revenue will be flat on a quarter-over-quarter basis -- much to the chagrin of Wall Street.
NASDAQ: MRVL
Key Data Points
Although it doesn't foresee sequential revenue growth, management is still optimistic, noting on the Q2 2026 conference call about "the custom business, with the fourth quarter substantially stronger than the third." Marvell's custom business relates to its specific designing of custom semiconductors for AI (and other) applications such as data centers. The company provides these custom chips to leading hyperscalers like Amazon's Amazon Web Services and Microsoft's Azure.
While there may be near-term stagnation with its data center business, the opportunity that lies before the company is robust. Marvell estimates its total addressable market at $94 billion. For context, the company reported fiscal 2025 revenue of $5.8 billion.
Marvell stocks may be a marvelous opportunity for AI investors
Trading at 23.4 times operating cash flow -- a discount to its five-year average cash flow multiple of 33.8 -- Marvell stock is a great opportunity right now for patient investors who can withstand some near-term volatility.
