This Artificial Intelligence (AI) Chip Stock Is Going to Skyrocket After Dec. 3


The market for artificial intelligence (AI) chips has been dominated by Nvidia, which explains why the semiconductor giant recently delivered another stellar set of results for the third quarter of fiscal 2025 (which ended on Oct. 27).

The chipmaker’s revenue shot up a whopping 94% year over year to $35.1 billion, while its immense pricing power helped it more than double its adjusted earnings to $0.81 per share. However, the market’s reaction to Nvidia’s outstanding results has been lukewarm. In fact, the stock has lost momentum and is down since releasing its latest report.

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One reason why that may be the case is because of Nvidia’s expensive valuation and worries that the company’s growth trajectory is slowing down. The margin pressure that’s going to be created by the quick production ramp-up of Nvidia’s new generation of AI chips is probably another reason why the stock has been on shaky ground despite its impressive report.

However, there’s another chip stock that isn’t as expensive as Nvidia and has strung together healthy gains over the past three months. This company is set to release its next set of results on Dec. 3, and there is a good chance that its performance will be solid enough to give the stock a nice shot in the arm.

Let’s take a closer look at this name.

While Nvidia has been the go-to provider of graphics processing units (GPUs) that are deployed in data centers for AI training and inference, there is another family of chips that’s gaining acceptance in AI servers. Application-specific integrated circuits (ASICs) are custom chips that are different from GPUs.

While GPUs are used for general computing purposes and are capable of processing huge amounts of data in a parallel manner, ASICs are used for performing specific tasks. The advantage of ASICs is that since they are programmed to perform a specific task, they are more efficient at carrying that task out, as they consume less power.

Not surprisingly, the market for AI-specific ASICs is expected to grow at an annual rate of 32% through 2030, according to market research firm Lucintel. One way investors can make the most of this market is by investing in shares of Marvell Technology (NASDAQ: MRVL), a designer of custom chips that has witnessed a nice turnaround in its fortunes thanks to AI.

Marvell is set to release its fiscal 2025 third-quarter results after the market closes on Dec. 3. Shares of the company have shot up an impressive 33% since it released its previous quarterly report on Aug. 29. This surge can be attributed to the fast-growing demand for Marvell’s custom chips, which are helping it offset weak demand in other segments.


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