MRVL stock goes up 32% thanks to an AI-focused growth outlook.

The stock of Marvell Technologies went up by 32.42% on Friday, thanks to — you guessed it — leveraged AI growth. The stock of the chip company (ticker: MRVL) went up after it predicted a very bright future for growth, helped by the use of artificial intelligence. How hopeful are you? In fiscal year 2024, AI's income was double what it was the year before.

"AI has emerged as a key growth driver for Marvell," said CEO Matt Murphy, even though the company was just introduced to AI. Was Murphy amazed by the Nvidia stock's lightning-fast growth, which added more than $200 billion in one day because of the expected demand for AI chips?

How long until a company's advice that mentions AI doesn't cause a huge rally? A couple of years ago, investors were going crazy about a different buzzword that was all over earnings reports: blockchain. And if history doesn't repeat itself, but it does have patterns, we should all be careful about riding the wave of hype.