Wall Street Says These 2 AI Stocks Could Fall 20% or More. Time to Sell?

Artificial intelligence (AI) stocks have been on a nice run over the past month, but Wall Street has lowered its expectations for some of them over the near term.

Most notably, Wall Street analysts are targeting significant drops for two AI stocks, chipmakers Marvell Technology (MRVL 1.94%) and Navitas Semiconductor (NVTS +17.03%).

Marvell makes networking and connectivity chips for data centers, systems, and networks. It is a major rival of Broadcom.

Image source: Getty Images.

Marvell stock has surged some 95% higher year to date, driven by record revenue and earnings that exceeded expectations. For the full fiscal year, Marvell saw revenue climb 43% year over year. For the current quarter, its guidance calls for strong growth to continue.

Also, Marvell expanded its partnership with Nvidia and got a $2 billion investment from the AI leader.

Marvell is firing on all cylinders. In fact, it may be too hot. With a price-to-earnings (P/E) ratio of 56, the company’s high valuation is one of the primary reasons analysts have a median price target of $126 per share. That’s about 24% below the current price. However, 82% of analysts call Marvell stock a buy. It is likely that many have not yet updated their price targets.

Overall, Marvell looks like a buy, but investors should watch the valuation and look for a dip.

Navitas’ transformation

Wall Street is more bearish on Navitas, with only 22% of analysts rating it a buy. It has a median price target of $8 per share, suggesting a 55% decline over the next year. This is because Navitas is pivoting from making chips for consumer electronics to making chips for more lucrative data centers and larger customers.

This, however, has led to a drop in revenue, hurting its stock price. But in 2027, Navitas should see earnings spike, in large part due to this pivot and a partnership it signed with Nvidia to be part of its data center architecture.

Navitas stock could well see a dip in 2026, but put it on your radar for a potential surge in 2027 and beyond.