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2 AI-Driven Tech Stocks to Buy Before they Surge in June
ZACKSยท2025-05-27 15:46

Group 1: Marvell Technology Group Ltd. (MRVL) - Marvell Technology has seen its stock price drop 50% from January peaks ahead of its Q1 FY26 earnings release due to disappointing revenue forecasts and broader semiconductor sector weakness [2][3] - The company's valuation needed a reset after trading as high as 83X forward earnings last year, and it is currently trading at a 30% discount to its 10-year median [3][6] - Marvell's data center revenue surged 78% in Q4, driven by the AI spending boom, and it is projected to grow revenue by 44% this year and 18% next year [4][6] - Despite the recent downturn, Wall Street remains bullish on Marvell, with 25 of 31 brokerage recommendations rated as "Strong Buys" [7] Group 2: Veeva Systems (VEEV) - Veeva Systems, a cloud-based software company for the pharmaceutical and life sciences industries, has averaged 25% revenue growth over the last decade and its stock has surged 760% [9][12] - The company trades 30% below its 2021 peaks, with concerns about slowing growth and valuation impacting its stock price [12][20] - Veeva's revenue grew by 16% in fiscal 2025, driven by a 20% increase in subscription services, and it is projected to grow revenue by 11% this year and 12% next year [16][18] - The company has $5.1 billion in cash and equivalents, with minimal debt, allowing it to pursue growth opportunities and acquisitions [21]