Insider Monkey’s analysis favors Broadcom over Marvell on risk-adjusted value: Broadcom trades at about 20.5 times forward earnings, versus 47.8 times for Marvell, whose upside relies on custom-chip programs scaling in later fiscal years.
Broadcom’s fiscal third-quarter revenue rose 86% to $29.6 billion, and free cash flow was $13.7 billion, or 46% of revenue; management expects fiscal fourth-quarter revenue of about $34.8 billion, up 93% year over year. Marvell’s fiscal second-quarter revenue rose 37% to $2.74 billion, with data-center sales up 46%. The article puts their free-cash-flow valuations at about 43 times and 132 times, respectively.
The report flags Broadcom’s reliance on a small group of hyperscaler programs as a risk, but says its networking and infrastructure-software businesses add other ways to benefit from AI spending. Marvell could outperform if Google and other custom programs scale faster than expected; the article says its Google opportunity is weighted toward later fiscal years.
