Spending on data centers is exploding as demand for artificial intelligence (AI) heats up. Nvidia has been the top beneficiary so far, but investors can broaden their exposure to the growing demand for chips and other data center components by considering Marvell Technology (MRVL -2.29%).
Marvell was one of the fastest-growing semiconductor companies last quarter, with revenue surging 58% year over year. The stock still trades at a reasonable valuation, making it a solid option for investors interested in the AI opportunity.

Image source: Getty Images.
Why Marvell stock can outperform
Marvell Technology is a leader in key data center components, including custom chips and Ethernet connectivity. Data center revenue has more than doubled over the last three years and now comprises 75% of Marvell's business.
The higher data center revenue has lifted Marvell's margins. Strong revenue growth last quarter drove a significant increase in the company's adjusted operating margin. Marvell recently sold off its automotive Ethernet business to redirect investment to its data center business. Management expects this move to drive further margin expansion and earnings growth.
Analysts expect the company's earnings to grow at an annualized rate of 33%, yet the stock trades at a very reasonable 26 times next year's consensus earnings estimate. This growth could potentially double the stock's price in the next three years.