HSBC Sees Marvell (MRVL) as an ‘Important AI Player,’ But Not a Top Contender

According to expert Frank Lee, Marvell whitethorn beryllium bullish connected its ASIC strategy but Broadcom has clearer ASIC momentum heading into the adjacent cycle.

“Marvell is emerging arsenic an important AI player, driven by its ASIC and optical business. We screen it from Asia arsenic 70%-plus of its gross comes from the region.”

The steadfast believes that the ASIC communicative is not matching expectations for Marvell. Hyperscalers’s rising capex usually implies much request for ASIC chips. That said, the summation successful hyperscaler capex forecasts should boost ASIC’s stock of that capex to emergence to 13% successful 2027e.

Marvell whitethorn beryllium optimistic astir its ASIC plans, but analysts don’t consciousness the aforesaid optimism.

“While Marvell is bullish astir its ASIC strategy, we don’t stock its optimism. We expect Marvell’s cardinal rival Broadcom to payment the astir arsenic its ASIC roadmap has greater visibility. Marvell’s stock terms is down 26% y-t-d, portion Broadcom’s is up 53% (vs S&P500: +13%).”

Marvell Technology, Inc. (NASDAQ:MRVL) engages successful the improvement and accumulation of semiconductors, focusing heavy connected information centers.

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