Why might Broadcom and Marvell outperform Nvidia in the next phase?

Because tech giants are developing their own custom chips to reduce costs and dependency on a single supplier, and Broadcom and Marvell are the primary designers of these chips.

Does this mean Nvidia will lose its position?

Not necessarily; Nvidia is expected to continue dominating the GPU market, but the custom chip segment may grow faster.

Which companies use custom chips from Broadcom and Marvell?

Google, Amazon, and Microsoft are among the key clients developing custom AI chips with the help of Broadcom and Marvell.

After Nvidia: Broadcom and Marvell Could Lead the Next AI Phase

A new analysis suggests the next phase of AI investing may belong not to GPU makers like Nvidia, but to custom silicon architects Broadcom and Marvell, which supply the world's largest AI platforms.

June 8, 2026

2 min read

Source: Motley Fool

According to a report from Motley Fool, the next phase of artificial intelligence (AI) investing may shift from GPU makers like Nvidia (NVDA) to custom silicon architects such as Broadcom (AVGO) and Marvell Technology (MRVL).

Recommendation Change

No specific analyst recommendation change was mentioned, but the report highlights a shift in investor focus toward companies offering custom AI solutions.

Analyst Rationale

Analysts argue that tech giants like Google, Amazon, and Microsoft are developing their own custom chips to reduce reliance on suppliers like Nvidia. Broadcom and Marvell benefit from this trend by designing custom chips for these companies.

Context

Nvidia's stock has performed strongly over the past year due to demand for its GPUs. However, as the AI market matures, custom chip companies may emerge as attractive alternatives.

What We Conclude (Neutral)

While Nvidia remains a dominant player, diversifying investments to include companies like Broadcom and Marvell could be a prudent strategy for investors seeking exposure to the next growth phases of AI.

Frequently Asked Questions

Custom silicon refers to processors designed specifically for a particular customer's needs, such as Google or Amazon, rather than general-purpose chips like Nvidia's GPUs.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.