Marvell Technology, Inc.

NASDAQ Global Select
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Somewhat Bullish +45

Broadcom vs. Marvell: The AI Supercycle Is Big Enough for Both. Here's the Better Buy.

AI infrastructure New AI features AI-generated analysis

📈 Broadcom's AI semiconductor revenue surged 221% year-over-year to $16.7 billion in Q3 fiscal 2026, with full-year expectations reaching $58 billion.

🚀 Marvell Technology raised its fiscal 2027 revenue guidance to $12 billion and expects Data Center business growth of over 60%.

💰 Broadcom projects AI semiconductor revenue to hit $115 billion in fiscal 2027 and $230 billion in fiscal 2028.

🤝 Marvell expanded its partnership with Google to develop custom silicon products linked to the TPU ecosystem.

📉 Broadcom trades at roughly 21.6x estimated fiscal 2027 earnings, significantly lower than Marvell's 57.3x valuation.

🔍 Marvell expects its custom chips business to more than double in revenue by fiscal 2028.

📊 Broadcom generated $13.7 billion in free cash flow in Q3, representing nearly 46% of its total revenue.

🌐 Marvell's connectivity solutions are expected to be the largest contributor to its projected $1.5 billion revenue increase in fiscal 2028.

Bullish Signals
  • Marvell Technology raised its fiscal 2027 revenue guidance to $12 billion, representing a 45% year-over-year increase from the previous outlook of $11.5 billion.
  • The company expects its Data Center business to grow approximately 60% in fiscal 2027 and more than 60% in fiscal 2028 due to strong AI-related demand.
  • Marvell anticipates that its custom chips business will more than double in revenue by fiscal 2028, driven by expanding partnerships like the one with Google.
  • Connectivity solutions are expected to be the largest contributor to Marvell's projected $1.5 billion increase in fiscal 2028 revenue outlook.
Risk Factors
  • Marvell trades at a substantially higher valuation of roughly 57.3 times estimated fiscal 2028 earnings compared to Broadcom's 21.6x, requiring higher future execution to justify the premium.
  • The company's growth outlook relies heavily on the successful execution of its custom chip and connectivity businesses growing above current expectations.
Full Analysis
Broadcom (NASDAQ: AVGO) and Marvell Technology (NASDAQ: MRVL) are both positioned to benefit from the global AI infrastructure boom, though they trade at significantly different valuations. Broadcom reported a surge in AI semiconductor revenue of 221% year-over-year to $16.7 billion in its third quarter of fiscal 2026, with management projecting total AI semiconductor revenue to reach approximately $58 billion for the full fiscal year. Marvell Technology has seen its growth outlook improve, raising guidance for fiscal 2027 revenue to $12 billion (a 45% increase) and expecting its Data Center business to grow over 60%. The company anticipates that its custom chips business will more than double by fiscal 2028, driven by strong demand for optical products and network switches essential for connecting large AI computing systems. Despite Marvell's robust growth potential, the article argues that Broadcom offers a superior risk-reward proposition due to its much lower valuation. Broadcom trades at approximately 21.6 times estimated fiscal 2027 earnings compared to Marvell's 57.3 times for fiscal 2028. Consequently, investors are paying a substantially higher premium for Marvell despite comparable expected revenue growth rates, making Broadcom the preferred choice for those seeking faster growth at a lower forward multiple.