Jim Cramer recently discussed the DeepSeek AI sell-off and its impact on various stocks, including Marvell Technology, Inc. (NASDAQ:MRVL). The semiconductor company has been a beneficiary of the AI wave, joining Broadcom to provide chips for AI workloads. However, amidst concerns about DeepSeek’s low development costs, Marvell’s shares dropped by 19%. Cramer highlighted a note from Melius Research that upgraded the stock to Buy with a $188 share price target.
Cramer emphasized the importance of considering whether GPU orders for Marvell will materialize and noted the impact on ‘traveler stocks’ that have benefited from AI sentiment. He also expressed skepticism about the capabilities of DeepSeek’s R-1 model, criticizing its censorship and limiting responses.
Despite Marvell’s potential as an investment, Cramer suggested that other AI stocks may offer greater promise for higher returns in a shorter timeframe. Marvell ranks 7th on a list of stocks discussed by Cramer in relation to the DeepSeek AI sell-off. Investors seeking more promising AI stocks trading at less than 5 times earnings can explore additional opportunities.
Overall, uncertainties surrounding AI stocks prompted Cramer to suggest looking beyond tech stocks and considering the powerful healthcare rotation seen recently. While acknowledging the potential of MRVL, investors may want to explore alternative AI investments for potentially greater returns. This article was originally published on Insider Monkey.
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