$Marvell Tech(MRVL.US) and $Broadcom(AVGO.US) seem to be the big winners in Wall Street’s new appreciation for custom AI chips. Shares of $Broadcom(AVGO.US) (Broadcom) rose +4.7% on Tuesday, and were up another +2.1% after hours in front of tomorrow’s 1Q earnings report. $Broadcom(AVGO.US) may be capitalizing on the enthusiasm for rival Marvell Technology ( $Marvell Tech(MRVL.US)), whose own shares surged +33% on Tuesday and rose another +9% after hours after $NVIDIA(NVDA.US) CEO Jensen Huang touted MRVL as "the next trillion-dollar company" at the annual Computex tech trade show in Taiwan on Tuesday.
Both Marvell and Broadcom make application-specific integrated circuits aka “ASIC” custom chips. $Broadcom(AVGO.US) has a market cap of $2.3T and a reported 70% share of the ASIC market. AVGO’s customers include Google for whom it makes custom tensor processing units and stands to benefit from Alphabet's aggressive purchasing of AI hardware. AVGO’s other major customers include Meta (MTIA), Microsoft, OpenAI, and potentially Apple. Even after its 33% rise today, MRVL has a market cap of $254 billion and a reported 15-20% share of the ASIC market. MRVL customers include $Amazon(AMZN.US), $Microsoft(MSFT.US), and more recently $Alphabet - C(GOOG.US) for inference chips.$Broadcom(AVGO.US) trades at a CY’26 P/E of 38x, a CY’27 P/E of 25x and is expected to post 2026-30 Adj EPS CAGR of +22% (2026 PEG 1.7x). $Marvell Tech(MRVL.US) trades at a CY’26 P/E of 75x, a 2027 CY’27 P/E of 47x and is expected to post 2026-30 Adj EPS CAGR of +40% (2026 PEG 1.8x). For reference, $NVIDIA(NVDA.US) trades at a CY’26 P/E of 26x, a 2027 CY P/E of 18x, and is expected to show 2026-30 Adj EPS CAGR of +21% (2026 PEG 1.2x). In March 2026, NVDA invested $2 billion in $Marvell Tech(MRVL.US) as part of a broader strategic partnership to expand NVIDIA’s AI ecosystem via NVLink Fusion, a rack-scale platform. The NVDA investment caused MRVL’s stock price to rise 13% when the investment was announced.The copyright of this article belongs to the original author/organization.
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