Circumstances don't look particularly appealing for semiconductor stocks, with a key projected focused on artificial intelligence getting off to a rocky start. Just six months after the announcement of the $500 billion Stargate initiative — a joint venture between OpenAI and SoftBank to bolster AI infrastructure in the U.S. — the project has run into major delays and scaled-back ambitions, hurting companies such as Marvell Technology Inc (NASDAQ:MRVL). Still, this could be an intriguing discount for adventurous contrarians.
On the surface, the pessimistic headlines aren't exactly clamoring for a bullish position in MRVL stock. Although the Stargate venture launched with a flashy debut at the White House, including vows of an immediate investment of $100 billion, the project has yet to secure a single major data center deal. Instead, it will now focus on building a much smaller facility in Ohio by year's end, with the partners struggling for consensus on key terms.
