A Motley Fool contributor favors Marvell over Arm in 2026, citing fiscal 2026 revenue growth of 42.1% versus 22.8% and a forward P/E of 58 times versus Arm’s 123.7. Marvell’s 10 largest customers, however, generated 82% of its fiscal 2026 revenue.
Marvell reported $2.67 billion in fiscal 2026 net income after losses in the prior two years, but a $1.8 billion pretax gain from selling its automotive Ethernet business accounted for a large share of the profit. In August, it issued Google a warrant for up to 58,970,907 shares at $206.58. Nearly all shares vest as Google purchases Marvell custom chips, with one tranche for each $500 million in custom-product revenue through fiscal 2033. Full vesting could dilute existing shareholders by about 6.7% of current shares.
The article’s valuation figures put Marvell at 26.1 times sales versus Arm at 59.8, while noting the data may vary by provider. Smartphone application processors supplied about 43% of Arm’s fiscal 2026 royalty revenue, and SoftBank owns about 86.4% of Arm. Arm also faces competition from open-source RISC-V. Marvell makes most of its products through third-party foundries in Taiwan and has previously faced export controls limiting sales to customers in China. Its Investor Day was scheduled for Oct. 6.
