Marvell Primed for AI Chip Growth, Offers Cheaper Play Than Nvidia on Accelerating Data Center Demand
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Nvidia's graphics cards are in high demand for AI training, but analyst believes Marvell Technology could be a better semiconductor stock pick.
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Marvell makes custom ASIC chips tailored for AI workloads, a market expected to be worth $55B by 2027.
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Marvell controls 12% of the ASIC market currently, so could see significant growth in AI chip revenue.
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Analysts estimate Marvell's revenue growth accelerating to over $12B by 2028 based on AI opportunity.
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At 11x sales, Marvell trades at a discount to Nvidia's 33x sales, offering growth potential for more cost-conscious investors.