This article first appeared on GuruFocus.
Huang called the chipmaker the next trillion-dollar company during Computex in Taipei. Cramer remained constructive on Marvell, but warned that some AI stocks may be getting ahead of their fundamentals.
The caution comes as Marvell has drawn fresh attention from investors betting on AI networking and custom-chip demand. Huang’s comments helped push Marvell shares to a record high on Tuesday, adding to a broad AI-led move across semiconductor stocks.
Cramer’s point was not that Marvell lacks long-term potential. Rather, he said the bigger risk is paying too much for stocks that rise quickly on enthusiasm before earnings and customer demand can fully catch up.
The debate reflects a wider split on Wall Street, where AI names continue to attract buyers even as some commentators warn that the sector’s valuation premium may leave little room for disappointment.
