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What the new Labour government means for your money

Now that the dust has settled on the election we can take stock of what a Labour win will mean for your finances

Is Marvell Technology Inc. (NASDAQ:MRVL) the Best AI Semiconductor Stock to Buy Now?

Attiya Zainib
·3-min read

We recently published a list of 7 Best Large-Cap Stocks to Buy in 2024 According to Billionaire Dan Loeb. Since MRVL is part of Loeb's top large-cap stock picks, the stock deserves a detailed look. But first let's see the latest performance of the billionaire.

Activist investor and billionaire Dan Loeb made a comeback in the final quarter of 2023 after losing money during most of the year in addition to suffering losses in 2022. Wall Street Journal earlier this year reported that Loeb’s Third Point, which he founded in 1995, gained between 7.8% to 8.6% in the December quarter. Third Point was also down 21% in 2022. Third Point was a star performer in the pandemic year as the fund closed 2020 up 19%, as Loeb foresaw the economy doing much better than many had expected.

Loeb is known for his activist bets in high-profile companies Intel, Disney and Shell. Some of his bets were highly unsuccessful, while others paid off. Latest data shows Loeb is continuing to retain the Q4'2023 momentum into 2024. In his Q1 letter to investors, Loeb revealed that Third Point returned 7.8% in the flagship Offshore Fund.

Loeb said in his Q1 letter that he's in the "soft landing camp" as he believes we are no longer in an inflationary environment. He's also highly bullish on AI, saying the technology favors the "incumbents" who are deploying massive cash "war chests" to win the "AI arms race," a term the billionaire used twice in his letter. Loeb is betting on the whole AI spectrum — semiconductors, data centers, AI software and power.

High angle view of a semiconductor chip against an array of electronics components.

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In this article we scanned billionaire Loeb's Q1 2024 portfolio and picked his top large-cap stock holdings. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Marvell Technology Inc. (NASDAQ:MRVL)

Billionaire Dan Loeb Q1'2024 Stake Value: $108,001,263

Billionaire Dan Loeb piled into semiconductor company Marvell Technology Inc. (NASDAQ:MRVL) during the first quarter, buying 1.5 million shares of Marvell Technology Inc. (NASDAQ:MRVL), worth over $108 million. Citi analyst Christopher Danely earlier this month talked about several AI semiconductor stocks he's bullish on. Marvell Technology Inc. (NASDAQ:MRVL) is one of these stocks.

Of the 919 hedge funds tracked by Insider Monkey, 87 hedge funds reported owning stakes in Marvell Technology Inc. (NASDAQ:MRVL) as of the end of the March quarter, up from 53 hedge funds in the previous quarter. This shows a significant jump in hedge fund sentiment for Marvell Technology Inc. (NASDAQ:MRVL), as hedge funds flock to AI stocks to maximize their profits.

Analysts believe that Marvell Technology Inc. (NASDAQ:MRVL) could be the next major AI play as Marvell Technology Inc. (NASDAQ:MRVL) begins to roll out AI-specific products like Spica™ 800G PAM4 DSP platform for optical interconnects. Marvell Technology Inc. (NASDAQ:MRVL) also sells Application-specific integrated circuits (ASICs) for data centers, which are seeing a huge boost amid the AI revolution.

 

According to data compiled by Yahoo Finance, average Wall Street price target for Marvell Technology Inc. (NASDAQ:MRVL) is $87.7, which represents a 14% upside potential from the current levels.

 

Marvell Technology Inc. (NASDAQ:MRVL) ranks 5th in Insider Monkey’s list of the 7 Best Large-Cap Stocks to Buy in 2024 According to Billionaire Dan Loeb.

 

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.