Updated
Updated · The Motley Fool · Jun 22
Analyst Backs Broadcom Over Marvell on 66% Growth and 34x Forward Earnings
Updated
Updated · The Motley Fool · Jun 22

Analyst Backs Broadcom Over Marvell on 66% Growth and 34x Forward Earnings

3 articles · Updated · The Motley Fool · Jun 22

Summary

  • Broadcom was picked as the stronger AI stock because its custom-chip business serves Alphabet, Meta, OpenAI and Anthropic, while Marvell’s key ASIC customers are Amazon and Microsoft.
  • Alphabet’s TPU gave Broadcom an edge in the comparison, with the analyst arguing it is the most successful custom AI chip among hyperscaler-backed offerings.
  • Wall Street also sees faster expansion ahead: Broadcom revenue is projected to grow 66% in fiscal 2026 and 62% in 2027, versus Marvell’s 41% in fiscal 2027 and 45% in 2028.
  • Valuation reinforced the call, with Broadcom at 34 times forward earnings while Marvell was described as expensive even against fiscal 2028 earnings estimates after enthusiasm tied to Nvidia’s endorsement.

Insights

With a severe packaging shortage limiting chip supply, can Broadcom realistically deliver on its massive $73 billion AI order backlog?
Given a 99% failure rate for custom chips, how are hyperscalers ensuring their multi-billion dollar silicon bets will actually pay off?
Can any custom hardware push truly overcome Nvidia's powerful software moat, which has locked in developers for over a decade?