Technology companies have become key enablers of the global artificial intelligence (AI) revolution and are playing a crucial role in its buildout. A prominent yet less flashy name in this list is Marvell Technology (MRVL +5.86%). With its share price at around $88 today, even a modest $200 investment can secure a small stake in this powerful AI infrastructure player.
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The company designs custom silicon chips (XPUs) such as optimized CPUs and AI accelerators, as well as XPU-attached chips, such as memory controllers and high-speed networking interconnects, to help data move fast and with low latency within hyperscaler clusters.
With the global spending on data centers expected to surpass $1 trillion by 2028, Marvell expects its total addressable market (TAM) to be around $94 billion by 2028, up 26% from its prior estimate. Of this, TAM for accelerated custom compute is expected to be $55.4 billion, while that for interconnects is estimated at $19 billion by 2028.
Why is Marvell the smartest pick?
Marvell is actively engaged in 18 custom projects to design multiple generations of XPU and XPU-attached chips. Of these, three custom XPUs and nine custom XPU-attached chips are being designed for four major hyperscalers, while two custom XPUs and four custom XPU-attached chips are being designed for two new hyperscalers.
The company also has 50 new design wins in the pipeline, which together can generate $75 billion in lifetime revenue. With a diversified portfolio spanning networking, memory, and compute, and a deep pipeline, the company is relatively resilient to macroeconomic uncertainties.
NASDAQ: MRVL
Key Data Points
Marvell's revenue surged 58% year over year to $2.01 billion, while adjusted earnings per share soared 123% to $0.67 in the second quarter of fiscal 2026. The company is also committed to returning capital to shareholders, as evidenced by the new $5 billion share repurchase program announced in September. The company returned $52 million in dividends and $200 million through share repurchases in the second quarter.
Considering all of these aspects, Marvell is one of the smartest technology picks now.
