Broadcom and Marvell both grow from AI demand but differ in valuation
Broadcom and Marvell Technology are riding the AI infrastructure boom, but their growth paths and valuations differ sharply. Broadcom also benefits from a diversified software business, generating $8.8 billion in Q3, and boasts strong cash flow—$13.7 billion in Q3, or 46% of revenue—reducing execution risk.
Key points
- Marvell’s data center revenue grew **79%** in Q2 fiscal 2027, with fiscal 2027 revenue revised to **$12 billion** (up from **$11.5 billion**)
Marvell’s data center segment, driven by AI demand, accounted for nearly 79% of its Q2 revenue (ended August 1, 2026). The company revised its fiscal 2027 revenue guidance upward to $12 billion (up from $11.5 billion) and expects $18 billion in fiscal 2028 (up from $16.5 billion). Its custom chips business is poised to more than double by fiscal 2028, with connectivity solutions—including optical products and network switches—leading a $1.5 billion revenue increase. While Marvell’s partnership with Google—including warrants for up to 59 million shares at $206.58 each—could drive future growth, Broadcom’s broader supplier agreements with Google (through 2031) and its lower valuation make it the safer bet for investors today.
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Broadcom vs. Marvell: The AI Supercycle Is Big Enough for Both. Here's the Better Buy.
fool.com · 26 September 2026
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