We recently compiled a list of the Jim Cramer’s Lightning Round: 8 Stocks to Watch. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against Jim Cramer’s other stocks.
Jim Cramer, the host of Mad Money, recently shared his insights on several key topics. He discussed the recent turmoil in the pharmaceutical sector, which followed the news that President-elect Trump is considering Robert F. Kennedy Jr. for the position of Secretary of Health and Human Services.
Cramer pointed out that the pharmaceutical industry took a significant hit after the announcement, but he believes this may present solid buying opportunities. Cramer acknowledged that RFK Jr., whom he humorously referred to as “Bobby Jr. for some Sopranos flavor,” has a strong anti-big pharma stance, which could be a concern for the sector. However, Cramer emphasized:
“… There’s a whole federal bureaucracy at HHS and frankly, I don’t think Trump will let him wreck a pretty important sector of the stock market.”
READ ALSO Jim Cramer Is Focused on These 15 Stocks This Week and Jim Cramer Talked About These 11 Stocks Recently
Cramer further addressed the potential confirmation of RFK Jr. as Secretary of Health and Human Services. He suggested that while there is a debate about whether the Senate will provide confirmation for him, he believes RFK Jr. will likely be approved. However, Cramer remained less concerned about RFK Jr. causing significant damage to the pharmaceutical industry, noting that he doesn’t expect him to have much success in pushing his anti-vaccine or anti-pharma agenda. Moving on to broader market trends, Cramer commented:
“After the initial Trump rally euphoria in the wake of the election, we quickly transitioned to a Trump rally hangover last week with the averages getting clobbered.”
He highlighted that semiconductor stocks were among the hardest hit, partially due to the typical tech sector sell-off when bond yields rise, as they did last week. Cramer also expressed concern, saying:
“With the election results from earlier this month and the second Trump administration coming in about two months, I am very worried about companies that are hostage to the Chinese economy.”
Finally, Cramer turned his attention to autonomous vehicles, suggesting that while the Trump administration’s plans for self-driving cars may sound ambitious, they could be more difficult to execute in practice.
He pointed out that a variety of state and local governments would need to align on new regulations, and the notion that the federal government could allow self-driving cars nationwide with a simple executive order seemed “just plain fanciful.” Despite this, Cramer advocated for owning TSLA, not because of any regulatory changes under Trump, but because he believes in the vision and leadership of the company’s CEO, Elon Musk.
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 18 and listed the stocks in the order that Cramer mentioned them.
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).
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL)
Cramer likes Marvell Technology, Inc. (NASDAQ:MRVL) and commented:
“Okay, I happen to like Marvell, that’s Matt Murphy. He bought a million dollars worth of stock not that long ago. Really important to note that it’s really in the data center. It’s got an optic component that’s very important. I like Marvell. Wish we hadn’t sold it but we did make a lot of money.”
Marvell (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure, offering a range of products. For the second quarter of fiscal 2025, the company reported a notable performance, with data center chip sales reaching $881 million. This marked a remarkable 92% increase compared to the same period in the previous year.
The data center segment represented 69% of its total revenue for fiscal Q2, reflecting the growing importance of this sector to the company’s overall business. A key contributor to this growth is the company’s ongoing efforts to ramp up production of its AI chips, which the company believes will play an important role in sustaining this momentum.
Marvell (NASDAQ:MRVL) CEO Matthew Murphy shared positive developments during the company’s earnings call, noting that the AI custom silicon programs are advancing well. According to Murphy, the first two AI chips are now moving into volume production, and the company is on track with additional custom programs that have already been secured, including partnerships with new Tier 1 AI customers announced earlier in the year.
For fiscal Q3, Murphy expressed confidence that the data center segment would continue its growth trajectory, projecting a sequential revenue increase in the high teens percentage range. Furthermore, management remains optimistic about exceeding its earlier forecast of $1.5 billion in AI-related revenue for fiscal 2025.
Overall MRVL ranks 7th on Jim Cramer’s list of stocks to watch. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.