Better Artificial Intelligence (AI) Stock: Marvell Technology vs. Broadcom

Better Artificial Intelligence (AI) Stock: Marvell Technology vs. Broadcom

Marvell Technology (NASDAQ: MRVL) and Broadcom (NASDAQ: AVGO) are key players in the artificial intelligence (AI) infrastructure space. They design custom AI processors and networking components, such as switches and routers, which are in terrific demand from hyperscalers and pure-play AI companies, as they help them run AI workloads seamlessly and cost-effectively in data centers.

However, both stocks have witnessed contrasting fortunes on the stock market this year. While shares of Marvell have nearly tripled so far in 2026, Broadcom stock has risen just 13%. Marvell's parabolic rise has been fueled by positive sentiment around the stock following praise from Nvidia CEO Jensen Huang, who believes that it could become a $1 trillion company.

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Broadcom, meanwhile, plunged despite delivering solid results recently, as investors were expecting stronger growth from the company. Does this mean Marvell is the better AI semiconductor stock to buy right now? Or should investors consider using Broadcom's underperformance as a buying opportunity and load up on its shares before it steps on the gas?

Broadcom dominates the custom AI market, but Marvell Technology is making solid gains as well

Marvell Technology and Broadcom operate in the same industry. Not surprisingly, both companies have been experiencing solid demand for their custom AI chips and networking components, driving healthy revenue and earnings growth.

Broadcom and Marvell together control 95% of the custom AI processor space, with Broadcom being the much larger player. Marvell is anticipating a 40% increase in revenue in fiscal 2027 (which will end in January next year) to $11.5 billion, followed by a stronger jump of 45% in fiscal 2028 to $16.5 billion. The data center business, which accounts for three-fourths of Marvell's top line, is the primary driver behind its improving growth profile.

Marvell is projecting a 50% increase in data center revenue this year, followed by a 50% jump in the next one. The growth will be driven by a significant acceleration in sales of both custom chips and networking components used in AI data centers.

A similar story is unfolding at Broadcom, the leader in custom AI chips with an estimated market share of 60%. Its AI semiconductor revenue shot up by 143% year over year in the second quarter of fiscal 2026 (which ended on May 3). What's more, Broadcom anticipates its AI revenue to jump by 3x in the current quarter to $16 billion.