Tech stocks have been leading the market this year; that’s no secret. The tech-heavy NASDAQ index, even after recent losses, has a year-to-date gain of ~32%, and the S&P 500, which includes a large tech segment, is up 16%.
Those broad numbers cover up some important drill-downs. It’s the giant tech firms that are leading the way, and among them, AI has played a conspicuous part in the gains. The technology came to sudden prominence last November, when OpenAI released its ChatGPT AI-powered chatbot, and showed just what AI was capable of.
It’s not just conversational chatbots, however. AI lies behind advances in autonomous vehicles, it has enhanced facial and speech recognition software systems, and it is widely used in digital communication and encryption systems, to name just a few of its applications.
All of this, and more, has Wall Street’s analysts putting AI stocks under the microscope, seeking out the names that stand to gain the most. While that list includes the tech giants, it also includes other firms, in a wider variety of fields. These include some of the obvious, such as semiconductor chip making and data center operations.
Now, let’s shift our focus to two AI-related stocks that Wall Street analysts have tagged as Strong Buys. According to their analysis, the AI boom hasn’t fully impacted these share prices yet, presenting investors with an opportunity that has yet to play out.
Marvell Technology (MRVL)
We’ll start with a chip maker, Marvell Technology Group. Marvell is both a designer and producer of semiconductor chips, and is no minnow with a market cap over $48 billion and a trailing 12-month revenue figure of $5.62 billion. The company specializes in the design and manufacture of chips for data infrastructure, creating the underlying tech that allows the movement, processing, storage, and security of data in a wide range of applications.
Those applications include server stacks, ethernet networks, storage accelerators, and are cloud-optimized for today’s interconnected digital world. Marvell has chipset product lines aimed squarely…
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