AI Stocks to Buy: C3.ai, Marvell Technology

Published Date : 23-07-2025 

Discover two promising AI stocks, C3.ai and Marvell Technology, that are well-positioned to capitalize on the growing AI market. Both companies offer unique strengths and significant growth potential. 

The artificial intelligence (AI) market presents a vast opportunity for investors, with the potential to drive significant economic growth and innovation. According to PwC, AI could add trillions of dollars to the global economy. Here are two AI stocks to consider buying on the dip: C3.ai and Marvell Technology.

C3.ai is a rising star in the AI software sector, known for its robust AI applications and strategic partnerships. While it may not have the scale or profitability of larger competitors like Palantir, C3.ai's revenue growth is impressive. In the most recent quarter, revenue grew by 26% year over year, a significant improvement from the virtually zero growth seen two years ago.

One of C3.ai's key strengths is its partnership with Microsoft, which has significantly expanded its sales force and reach. This collaboration has helped C3.ai close 59 agreements through its partners in the last quarter alone. Additionally, the U.S. military's increasing adoption of AI technology has been a boon for C3.ai. Over the past year, the company has secured 51 agreements with the federal government, including a contract ceiling raise from $100 million to $450 million by the U.S. Air Force Rapid Sustainment Office.

C3.ai's software excels in predictions and forecasts, making it particularly useful for detecting potential points of failure. This capability complements Palantir's strength in organizing and making sense of unstructured data, allowing both companies to deliver value to their shareholders. The enterprise AI market, which aims to help companies draw insights and make decisions, is expected to grow from $85 billion in 2022 to between $1.5 trillion and $4.6 trillion by 2040, according to McKinsey.

C3.ai stock reached a high of $45 last year but has since pulled back to around $28. Despite its volatility, analysts on Yahoo Finance expect the company's revenue to grow from $389 million in fiscal 2025 to $551.2 million by fiscal 2027. This growth could potentially lift the stock price proportionally.

On the hardware side, data centers require specialized networking products and processors to handle high-speed data transfer for AI training. Marvell Technology is a leader in this domain, benefiting from robust revenue growth. The company's total revenue hit a quarterly record of $1.9 billion in fiscal Q1, marking a 4% sequential increase over the previous quarter and a 63% jump year over year.

Marvell's custom chip solutions have driven a 76% year-over-year increase in data center revenue. The company's long-term relationship with Amazon Web Services, which recently acquired a stake in Marvell, further solidifies its position. Marvell is also working with Nvidia's NVLink Fusion platform to enhance data center efficiency in running AI workloads.

Marvell's chip integration with NVLink is expected to expand its data center opportunity, which the company initially estimated at $75 billion. In June, management updated this estimate to $94 billion by 2028, encompassing opportunities in custom chips, network switching, interconnects, and data storage. Analysts on Yahoo Finance predict that Marvell's revenue will grow from $5.7 billion in fiscal 2025 to nearly $9.8 billion by fiscal 2027.

Despite the significant growth potential, Marvell's stock is currently trading at a price-to-earnings multiple of 23 and just over 10 times fiscal 2030 earnings estimates. This makes it an attractive buy for investors looking for a sleeper AI stock. Following Amazon's lead, investors should consider adding Marvell to their portfolios.

Both C3.ai and Marvell Technology are well-positioned to capitalize on the growing AI market, offering unique strengths and significant growth potential. Whether you're interested in AI software or hardware, these stocks are worth considering for your investment portfolio. 

Frequently Asked Questions (FAQS): 

Q: What is the current revenue growth rate of C3.ai?

A: C3.ai's revenue grew by 26% year over year in the most recent quarter.

Q: How has Marvell Technology's revenue performed in the latest fiscal quarter?

A: Marvell Technology's total revenue reached a quarterly record of $1.9 billion in fiscal Q1, marking a 4% sequential increase over the previous quarter and a 63% jump year over year.

Q: What is the estimated total addressable market for Marvell Technology by 2028?

A: Marvell Technology's total addressable market is estimated to reach $94 billion by 2028.

Q: Why is C3.ai's partnership with Microsoft significant?

A: C3.ai's partnership with Microsoft has significantly expanded its sales force and reach, helping it close 59 agreements through its partners in the last quarter alone.

Q: What is the projected revenue growth for Marvell Technology by fiscal 2027?

A: Analysts on Yahoo Finance expect Marvell's revenue to grow from $5.7 billion in fiscal 2025 to nearly $9.8 billion by fiscal 2027. 

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