Arm vs. Marvell Technology: Which AI Chip Stock Is a Better Buy in 2026?
Arm's licensing model commands a steep valuation premium, while Marvell is growing faster but depends heavily on a small group of large customers.
Overview
Arm Holdings (NASDAQ:ARM) and Marvell Technology (NASDAQ:MRVL) both sell into the AI data center boom, but they make money in very different ways.
Arm provides the architectural blueprints for the energy-efficient processors found in nearly every smartphone and a growing number of data centers. Marvell specializes in high-speed networking and custom silicon for moving and processing data within the cloud. Investors have rewarded both, with Marvell shares more than tripling over the past year and Arm's more than doubling.
Details
Arm licenses its intellectual property to semiconductor companies and earns royalties on chips that use its designs. The company says it has held more than 99% of the smartphone application processor market for years, and it's pushing further into data centers, where its royalties more than doubled year over year in its fiscal first quarter.
Source
Originally published at www.fool.com.