MRVL trades at a richer 68x forward P/E than AVGO's 33x, despite posting gross margins of 52% versus Broadcom's 67%.
Broadcom's 46% FCF margin and VMware's sticky software annuity make it a reliable compounder Marvell's hyperscaler-dependent model can't yet match.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.
Marvell Technology (NASDAQ: MRVL) and Broadcom (NASDAQ: AVGO) both just delivered AI-fueled earnings beats, yet the businesses look nothing alike under the hood. Marvell posted 231.37% YTD gains chasing custom XPU wins. Broadcom quietly compounded with elite margins and a software stack. The contrast deserves a closer look before anyone pays up.
Marvell delivered Q1 FY2027 revenue of $2.42B, up 27.6% YoY, with Data Center contributing $1.83B, or 76% of revenue. CEO Matt Murphy guided Q2 to $2.70B, calling out "exceptional AI-related bookings" across 800G/1.6T optics and custom XPU programs. Encouraging, but the GAAP gross margin sat at 52.1%. That is the structural reality of bespoke silicon: hyperscalers hold the leverage.