Broadcom vs. Marvell: Which Custom AI Chip Stock Is the Better Buy?
Investors looking to capitalize on the custom AI chip market need to take a closer look at these two companies dominating this space.
Overview
Application-specific integrated circuits (ASICs) are custom chips designed to perform specific tasks, and demand for these chips has been growing at a terrific pace amid the artificial intelligence (AI) infrastructure boom.
As custom AI processors are designed exclusively to perform a specific task, they are extremely efficient at that task. This results in higher energy efficiency and improved performance over general-purpose chips, such as graphics cards. The lower cost of running AI workloads on custom chips is why major hyperscalers and AI companies have been designing in-house processors.
Details
Marvell Technology (NASDAQ: MRVL) and Broadcom (NASDAQ: AVGO) are among the leading players in custom AI chips, which explains why they have been growing at an incredible pace. Let's take a closer look at their business and decide which of these semiconductor stocks is a better buy right now for investors looking to capitalize on the fast-growing custom AI space.
Source
Originally published at www.fool.com.