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.
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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