Wall Street Says These 2 AI Stocks Could Fall 20% or More. Time to Sell?
Wall Street analysts have lowered their expectations for two AI stocks, Marvell Technology and Navitas Semiconductor, citing potential drops of 20% or more. Marvell's high valuation and Navitas' revenue drop due to its pivot to data center chips are the primary concerns.
Wall Street analysts are targeting significant drops for two AI stocks, Marvell Technology and Navitas Semiconductor. Marvell's stock has surged 95% year to date, driven by record revenue and earnings that exceeded expectations. The company's high valuation, with a price-to-earnings ratio of 56, is a primary concern, with a median price target of $126 per share, about 24% below the current price. Navitas is pivoting from making chips for consumer electronics to data centers, leading to a revenue drop and a median price target of $8 per share, suggesting a 55% decline. Navitas is expected to see earnings spike in 2027 due to its pivot and partnership with Nvidia. Marvell expanded its partnership with Nvidia and received a $2 billion investment from the AI leader.
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