Marvell vs. Broadcom: Which Custom Artificial Intelligence (AI) Chip Stock Has More Upside in 2026?

Custom artificial quality (AI) chips are a lucrative business; conscionable inquire Broadcom (NASDAQ: AVGO) and Marvell Technology (NASDAQ: MRVL). As 2 of the industry's large competitors, they proceed to impressment with their eye-popping earnings. Broadcom and Marvell some plan application-specific chips that are progressively preferred implicit wide graphics processing units (GPUs) successful the caller epoch of AI workloads.

As income proceed to surge for some companies, the question for investors is which banal offers greater upside going forward?

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Broadcom is undoubtedly the marketplace person successful customized AI accelerators. It commands much than 70% marketplace stock successful that country alone. Its customers are the world's biggest hyperscalers, including Alphabet, Meta Platforms, OpenAI, Anthropic, and more.

The numbers Broadcom has posted implicit the past twelvemonth are simply staggering, and 2026 is shaping up to beryllium nary different. For the archetypal 4th of 2026, Broadcom's gross exceeded $19 billion, a 29% summation from the aforesaid play past year. Most impressively, AI semiconductor gross grew a whopping 106% successful the archetypal quarter.

Broadcom's second-quarter guidance was conscionable arsenic astonishing, arsenic the semiconductor elephantine announced gross expectations of $22 billion. This would beryllium a 47% summation from 2025.

The banal is really down much than 7% since the commencement of 2026. This caller driblet has made Broadcom's valuation much attractive, arsenic its guardant price-to-earnings (P/E) ratio is present beneath 30. The institution besides pays a quarterly dividend worthy $0.65 per share.

It's improbable that Broadcom's monolithic maturation volition past forever, but the extremity doesn't yet look to beryllium successful sight. The company's financials and outlook stay strong, and its competitory moat is enviable.

Don't place Marvell. The institution is smaller but increasing accelerated and furiously. Its banal is besides much attractively priced than Broadcom's. Marvell delivered grounds gross successful fiscal 2026, reporting astir $8.2 billion, a 42% summation from the erstwhile year. Its net per stock roseate an unthinkable 81% arsenic well.

Marvell has large ambitions. The company's CEO and Chairman, Matt Murphy, said the concern expects year-over-year gross maturation to accelerate successful each 4th of fiscal twelvemonth 2027. All told, Marvell anticipates maturation of astir 30%. Demand from information centers and caller acquisitions should support the company's gross increasing quickly.