Nvidia’s GTC 2025 Could Be a Death Sentence for This AI Stock

Nvidia (NVDA) showcased its latest artificial intelligence (AI) innovations at its GTC 2025 event this week in San Jose. The chip maker continues to position itself at the forefront of artificial intelligence development amid intensifying global competition.

CEO Jensen Huang delivered a keynote highlighting Nvidia’s ambitious growth targets. The company estimates data center infrastructure revenue to reach $1 trillion by 2028 as demand for GPUs surges from major cloud providers.

During the big-ticket event, the semiconductor company unveiled its powerful Blackwell Ultra AI chip and announced the Llama Nemotron family of models, which have enhanced reasoning capabilities and are designed to create independent AI agents. 

Nvidia also introduced DGX personal AI supercomputers and revealed the Vera Rubin architecture, which is expected to exceed Blackwell’s performance upon its 2026 release. Moreover, Nvidia’s advancements in photonics networking technology aim to connect millions of GPUs while reducing energy consumption. 

These innovations come as competition heats up from U.S. rivals and Chinese companies like DeepSeek, which have recently demonstrated impressive AI capabilities with less advanced technology.

Analysts Remain Cautious on Marvell Technology

According to a report from StreetInsider, Nvidia’s GTC event could impact optical and networking stocks like Marvell Technology (MRVL). This is because Nvidia’s co-packaged optics technology (CPO) addresses bandwidth limitations in large AI clusters and is expected to debut in the company’s Infiniband and Spectrum X switches.

Analysts expect the development to pose a direct competitive threat to Marvell’s networking components business. Other potential losers include optical transceiver manufacturers Lumentum (LITE) and Coherent (COHR), while Arista Networks (ANET) faces increased competition in the ethernet networking space.

Alternatively, contract manufacturer Fabrinet (FN) might emerge as a winner through manufacturing deals with Nvidia for these new optical-based products. The market anticipates higher volatility in these networking and optical stocks than in Nvidia itself, as investors recalibrate expectations based on Nvidia’s expanded capabilities in the optical interconnect space.

Is Marvell Technology Stock a Good Buy Right Now?

Valued at a market capitalization of $61 billion, Marvell stock has returned close to 400% to shareholders in the past decade. Despite these outsized gains, the tech stock trades 45% below its all-time highs, allowing you to buy the dip. 

In the fourth quarter of its fiscal 2025 (ended in January), Marvell reported revenue of $1.817 billion, which grew 20% sequentially and 27% year-over-year. Its data center revenue surged to $1.37 billion, accounting for 75% of total sales. Data center sales rose 78% year-over-year, primarily driven by AI-related demand. Moreover, adjusted earnings per share reached $0.60, while operating margin expanding to 33.7%.

In fiscal 2025, Marvell reported revenue of $5.76 billion as data center sales grew 88% year-over-year. The company generated $1.68 billion in operating cash flow and returned $933 million to shareholders.

AI has become Marvell’s primary growth engine, accounting for over half of total revenue. Custom silicon has grown to approximately 25% of data center revenue, while Electro-Optics contributes roughly 50%. Management emphasized that AI revenue exceeded their $1.5 billion target and will “very significantly exceed” their $2.5 billion target for fiscal 2026.

Notably, Marvell has established relationships with all four major hyperscalers, with custom compute engagements at two customers and a third in development. Despite investor concerns about competition, CEO Matt Murphy confidently stated they expect custom XPU revenue from their lead customer to grow in FY26 and beyond.

For Q1 of fiscal 2026, Marvell guided for revenue of $1.875 billion, projecting over 60% year-over-year growth.

What Is the Target Price for MRVL Stock?

Analysts tracking Marvell expect revenue to rise to $8.2 billion in fiscal 2026 and $9.7 billion in 2027. Comparatively, adjusted earnings are forecast to expand from $1.57 per share in fiscal 2025 to $3.69 per share in 2027. 

Out of the 32 analysts covering MRVL stock, 28 recommend “Strong Buy,” two recommend “Moderate Buy,” and two recommend “Hold.” The average target price for the tech stock is $121.07, indicating upside potential of 75% from current levels.