# Broadcom and Marvell both grow from AI demand but differ in valuation

Digest AI · Hardware & Compute · published 2026-09-26T19:32:00Z

Canonical: https://digestai.news/story/broadcom-and-marvell-both-grow-from-ai-demand-but-differ-in-valuation

## Summary

**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.

**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.

## 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**)

## Why it matters

The AI supercycle favors both firms, but Broadcom’s lower valuation and diversified revenue streams make it less risky for investors seeking near-term stability.

## Sources

1. [Broadcom vs. Marvell: The AI Supercycle Is Big Enough for Both. Here's the Better Buy.](https://fool.com/investing/2026/09/27/broadcom-vs-marvell-heres-the-better-buy) (fool.com, 2026-09-26)

Part of the developing story: [Tech Giants Race to Monetize AI](https://digestai.news/thread/google-tests-pilot-that-pays-publishers-when-their-content-appears-in-ai-results) (5 stories)

## Cite

Digest AI, "Broadcom and Marvell both grow from AI demand but differ in valuation", 26 September 2026, https://digestai.news/story/broadcom-and-marvell-both-grow-from-ai-demand-but-differ-in-valuation

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