Broadcom and Marvell Are Quietly Cashing In on Custom AI Chips

Product / TechEarnings Impact 4
โดย The Motley Fool·Read original
Summary · why it matters

Broadcom and Marvell Technology are capturing a fast-growing slice of AI spending as cloud giants increasingly design their own custom processors. Broadcom's AI chip and networking revenue jumped 143% to $10.8 billion in its fiscal second quarter ended May 3, 2026, with CEO Hock Tan calling demand for XPUs and networking insatiable and the company guiding for AI revenue to more than triple from a year earlier in the current quarter. Marvell reported record revenue of $2.4 billion in its fiscal first quarter ended May 2, 2026, driven by a 27% rise in its data center segment, and expects its custom silicon business to top $10 billion in annual revenue by fiscal 2029. Both stocks trade at premium valuations, with Broadcom's price-to-earnings ratio in the low 60s and Marvell's near 100, while facing customer concentration risk and lower margins on AI sales compared to software.

Impact on stocks 5

Artificial Intelligence± Mixed · 5 stocks
Broadcom Inc
AVGO
▲ PositiveDemandrelevance

AI chip and networking revenue jumped 143% to $10.8 billion, with CEO citing insatiable demand for XPUs and networking

Marvell Technology Group Ltd
MRVL
▲ PositiveDemandrelevance

Record revenue driven by 27% rise in data center segment; custom silicon business expected to top $10 billion annually by fiscal 2029

NVIDIA Corporation
NVDA
▼ NegativeCompetitionrelevance

Cloud giants increasingly design custom processors, potentially reducing reliance on NVIDIA's merchant silicon

Theme Impact 6

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