Is Marvell Finally Closing the Gap on Broadcom? Cramer Thinks So

"While Broadcom has been a huge winner in the AI era, up nearly 500% since the beginning of 2023, Marvell has only rallied about 140% over the same period. The data backs him up almost exactly: Broadcom is up 524% since January 2023, while Marvell has gained 152% over the same stretch. Same AI tailwind, dramatically different outcomes."

"Both Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL) sit at the center of the custom silicon boom. Hyperscalers don't want to be entirely dependent on NVIDIA. They want chips designed specifically for their workloads, and these two companies are the architects helping them build it. Broadcom does it for Google. Marvell does it for Amazon Web Services."

"Data center revenue grew 38% year-over-year to $1.52 billion in Q3, representing 73% of total revenue. CEO Matt Murphy didn't hedge his language either: 'Our data center revenue growth forecast for next year is now higher than prior expectations.' That's not a company losing its anchor customer."

Broadcom and Marvell Technology both operate in the custom silicon space, designing chips for hyperscalers like Google and Amazon Web Services respectively. However, their performance diverges dramatically: Broadcom gained 524% since January 2023 while Marvell gained 152%. Broadcom's AI revenue alone reaches $8.4 billion quarterly, four times Marvell's total revenue. Marvell experienced a significant 50% decline following a weak quarter in March but recovered with consecutive strong quarters. Recent data center revenue grew 38% year-over-year to $1.52 billion, representing 73% of total revenue. CEO guidance indicates higher data center growth forecasts for the coming year, suggesting concerns about losing Amazon business were overstated.

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