Is This Hidden AI Stock Ready for Its Next Big Run?

Core Insights - Marvell Technology is emerging as a significant player in the AI semiconductor market, providing essential infrastructure for AI data centers, 5G networks, and advanced automotive systems [1][4] Financial Performance - In Q2 of fiscal 2026, Marvell's total revenue increased by 58% year-on-year to $2.01 billion, with data center revenue rising by 69% to $1.5 billion, now accounting for 74% of total revenue [4] - Adjusted earnings per share (EPS) surged by 123% year-on-year to $0.67, significantly outpacing revenue growth, while adjusted gross margin improved to 59.4% from 46.1% in the previous year [5] Strategic Focus - The company is shifting its focus towards custom AI silicon and data center networking, indicating a strategic realignment to capitalize on the fastest-growing segments in the semiconductor industry [2][4] - Marvell's AI design engagements are at an all-time high, with increasing interest from hyperscale customers in its unique technology [5] Market Recovery - Non-data center segments, including enterprise networking and carrier infrastructure, contribute 26% of total sales and are showing signs of recovery, with a projected annualized revenue run rate of approximately $1.7 billion [6]