This Under-the-Radar AI Stock Could Be Set for a Massive Comeback

Core Insights - Marvell Technology has a strong history of delivering shareholder returns, primarily known for its chips in telecom and consumer sectors since its establishment in 2005 [1] - The company is now focusing on custom ASICs for artificial intelligence (AI), which has become a critical area for growth despite a temporary revenue growth pause earlier this year [2] Company Developments - Marvell has shifted its product offerings to include ASICs that cater to AI and data centers, utilizing advanced process technologies and multi-chip packaging [4] - The company supports chips ranging from 14nm to 3nm and custom AI accelerators, emphasizing power efficiency and rigorous testing methodologies [5] - In May 2023, Marvell partnered with Nvidia to enhance NVLink Fusion technology, integrating connectivity with hardware and software for next-generation AI infrastructure [6] Financial Performance - In the first half of fiscal 2026, Marvell reported $3.9 billion in revenue, marking a 60% increase compared to the same period in fiscal 2025 [7] - Revenue for fiscal Q1 was nearly $1.9 billion, while Q2 was about $2.0 billion, indicating a 6% quarter-over-quarter growth, although growth remains inconsistent [7] - The positive revenue growth led to a turnaround in operating income, resulting in a net income of $373 million for the first half of the fiscal year, a significant improvement from a $409 million loss in the previous year [8]