Better Buy After the Semiconductor Sell-Off: Marvell or Broadcom?
Both of these chip designers sit at the center of the custom AI build-out, and both took a hit last week. But one looks like the better buy at today's prices.
Better Buy After the Semiconductor Sell-Off: Marvell or Broadcom?
Overview
The companies that design custom chips for the world's largest cloud operators have been among the biggest winners of the artificial intelligence (AI) build-out. But last week, investors were handed a sharp reminder that expectations can outrun even rapid growth. Marvell Technology (NASDAQ: MRVL), which had soared roughly 32% in a single session days earlier, gave back a good chunk of that gain by Friday's close. And Broadcom (NASDAQ: AVGO) tumbled about 12% on Thursday and slid further on Friday after its latest outlook for AI chip sales came in below the loftiest hopes.
Both companies design custom AI accelerators and the high-speed networking gear that links sprawling data centers, selling largely to a handful of hyperscale customers. So, with both stocks now well off their recent highs, which one looks like the better buy?
Image source: Getty Images.
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Originally published at www.fool.com.
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