Nvidia Faces Growing Competition from Marvell in AI Chip Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MRVL?
Source: Fool
- Stable Market Share: Nvidia maintains an impressive 81% share of the AI chip market, and with the upcoming Vera Rubin chips expected to significantly reduce AI model training and inference costs, it is poised to reinforce its leadership despite competitive pressures.
- Growth Potential for Marvell: Marvell Technology aims to quadruple its share of custom AI processors from 5% in 2023 to 20% by 2028, while its addressable market is projected to expand from $21 billion to $94 billion, indicating strong growth prospects driven by custom AI chip opportunities.
- Strong Financial Performance: Marvell's revenue for fiscal 2026 is estimated to jump by 42% to $8.18 billion, with an impressive 80% increase in earnings per share to $2.83, suggesting that heavy investments in AI data centers will continue to drive robust performance in the future.
- Optimistic Stock Price Outlook: Analysts have set a median 12-month price target of $119 for Marvell, indicating a potential upside of 50%, which is significantly higher than the 30% expected upside for Nvidia, suggesting that Marvell may achieve greater stock price growth in the coming year.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 80.920
Low
85.00
Averages
120.12
High
156.00
Current: 80.920
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc., together with its subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. The Company is engaged in the design, development, and sale of integrated circuits. Its product solutions serve various end markets: data center, enterprise networking, carrier infrastructure, consumer, and industrial. Its product offerings include CXL, Data Processing Units, Security Solutions, Coherent DSPs, Coherent-lite DSPs, Data Center Switches, DCI Optical Modules, Enterprise Switches, Ethernet Controllers, Ethernet PHYs, PCIe Retimers, Linear Drivers, PAM DSPs, Transimpedance Amplifiers, Fiber Channel, HDD, Storage Accelerators, and SSD Controllers. The Company develops semiconductor solutions tailored to individual customer specifications that deliver system-level differentiation for artificial intelligence, data center, compute, networking, carrier, storage, aerospace, and defense applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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