Given The Nvidia Tax, Broadcom And Marvell Offer A Powerful 1-2 AI Punch
Seeking Alpha
February 14, 2026
AI-Generated Deep Dive Summary
Broadcom (AVGO) and Marvell (MRVL) are emerging as strong contenders in the AI chip market, offering alternatives to Nvidia's dominance. With the "Nvidia Tax" creating opportunities for diversification, investors are turning to these companies for potential upside. Broadcom provides a more diversified portfolio but with reduced exposure to AI compared to its peers, while Marvell offers higher growth potential, albeit with greater risk.
Broadcom's strength lies in its broad product range, including Wi-Fi chips and infrastructure solutions, which offset its lower AI focus. However, this diversification comes at a cost, with the company trading at an elevated price-to-earnings (PE) ratio, making it a pricier option for investors seeking immediate returns.
Marvell, on the other hand, is seen as more reasonably valued relative to peers, particularly when compared by price-to-sales metrics. Its higher exposure to AI chips positions it for greater growth in this rapidly evolving sector. Despite its risks, Marvell's valuation appears more attractive, making it a compelling choice for those willing to take on additional risk.
The AI industry's momentum and increasing adoption of custom chips are expected to drive sustained growth for both companies. However, investors must be cautious about the potential AI bubble and competitive pressures from Chinese advancements in chip technology. While Nvidia remains a dominant player, Broadcom
Verticals
financemarkets
Originally published on Seeking Alpha on 2/14/2026