It's hard to believe that other fish are in the sea when the Loch Ness monster keeps getting in the way.
There can be little doubt that AI chipmaking leviathan Nvidia ( NVDA ) dominated the tech headlines in 2024.
Related: Analysts reset price targets for surging Nvidia rival after earnings
The second-most valuable company in the world behind Apple ( AAPL ) was the top performer on the Dow Jones Industrial Average last year, and several investment firms named the behemoth co-founded by CEO Jensen Huang as their top pick.
By now, you've probably heard all about the hypersonic growth of artificial intelligence, which promises to be the biggest thing since the Big Bang theory.
For example, AI could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined, PwC said in an October study .
"AI is set to be the key source of transformation, disruption and competitive advantage in today’s fast changing economy," the firm said.
The fastest-growing jobs between now and the end of the decade include big data specialists, fintech engineers, and AI and machine learning specialists, according to the World Economic Forum's Future of Jobs Report 2025 , a survey of more than 1,000 companies around the world.
Analysts say Marvell outperforms chip industry
"More employers expect broadening digital access to affect their business than any other macro trend," the organization said. "This growing digital access is a vital enabler for new technologies that can transform labor markets."
And you might be thinking that Nvidia is the only name in the AI game, but allow us to suggest an alternative: Marvell Technology ( MRVL ) .
More 2025 stock market forecasts
The Santa Clara, Calif.-based semiconductor company has seen its shares rise nearly 75% from a year ago.
Analysts at Wells Fargo boosted their price target for Marvell Technology to $140 from $130 on Jan. 13 and reiterated their overweight rating.
“We view MRVL as more of an idiosyncratic chip company, one that outperforms the overall chip industry growth rate in good and bad times,” the firm said in a research note. “We believe MRVL is in a position to grow revenue at a 15-20% pace over the long term."
"In addition to this superior revenue growth, we see an opportunity to build on leading operating margins as the company grows in scale," Wells Fargo said.
The firm said its thesis on Marvell has continued to be driven by its positive views on the company's data center momentum.
Veteran analyst Bob Byrne sees Marvell as a rising star in the AI economy, and he spelled out his reasons in a recent column on TheStreet Pro.
"Marvell is not merely a semiconductor company — it is fast becoming the backbone of the AI revolution," he said. "Its custom chips are foundational to the infrastructure powering AI and cloud technologies, aligning the company with the future of these transformative industries."
Byrne noted that Marvell recently posted third-quarter earnings of 43 cents per share on revenue of $1.52 billion. Analysts polled by FactSet had expected earnings of 41 cents a share on sales of $1.46 billion.
Marvell CEO Matt Murphy said during the earnings call that the company’s AI revenue was expected to exceed $1.5 billion in the current fiscal year and $2.5 billion in 2025.
Byrne said Marvell’s strong performance was not an isolated event since management guided for another 19% sequential revenue growth in the fourth quarter, signaling continued momentum and underscoring the company’s positioning in high-growth markets.
"Marvell is positioning itself for sustainable growth and long-term value creation through strategic alliances and relentless innovation," he said.
Veteran trader says Marvell poised to challenge Nvidia
"This combination of strong fundamentals and exposure to revolutionary technology sets the company apart in an increasingly competitive landscape," Byrne continued.
Marvell recently said it had expanded its strategic relationship with Amazon Web Services, Amazon’s ( AMZN ) cloud computing platform.
Related: Analyst revisits Nvidia stock price target amid correction slump
The five-year, multi-generational agreement includes collaboration across multiple AWS products and the use of AWS cloud infrastructure and Byrne said the deal "represents a pivotal milestone."
"As a supplier of next-generation data center semiconductors, Marvell will play a critical role in enhancing AWS’s cost efficiency and scalability, including cutting-edge custom AI chips," Byrne said. "AWS dominates the cloud computing market, commanding over 30% market share."
As demand for AI computing power grows, he added, "reliance on cloud computing and storage giants like AWS will only intensify, positioning Marvell as a key enabler in this ecosystem."
Market projections for Marvell’s AI revenue are compelling, and analysts estimate revenue could reach $3.6 billion by 2025, Byrne said, significantly outpacing the company’s $2.5 billion target.
"With this trajectory, Marvell is poised to challenge Nvidia’s dominance in the AI semiconductor space, offering a viable alternative in a market poised for exponential growth," he said.
Byrne named Marvell his top pick for 2025, noting that the company offers a compelling case for investors "seeking exposure to the AI revolution who want an alternative or complement to Nvidia or other mega-cap tech names."
“Its solid earnings performance, expanding footprint in the cloud and AI markets, and strategic partnerships provide a unique blend of growth potential and resilience," he added.
However, Byrne advised investors to remember that momentum can shift quickly in the AI sector, so avoid going all-in on any single name in the semiconductor or AI sector.
"While no stock is without uncertainty, Marvell’s trajectory suggests it is well-equipped to deliver substantial returns in 2025," he said.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
