Broadcom and Marvell delivered back-to-back AI chip earnings this month, but the scale gap between them is stark. Broadcom's AI semiconductor revenue jumped 221% to $16.70 billion, while Marvell's smaller Data Center segment grew 46% and picked up a Google warrant that ties the two companies closer together. Broadcom's software moat and cash generation give it the lower-risk profile, while Marvell's stock already reflects real momentum.
Broadcom's Custom Chips Drive a Bigger AI Business
Broadcom (NASDAQ: AVGO) posted $29.59 billion in fiscal Q3 revenue on September 2, 2026, powered by its custom XPU chips. Its AI semiconductor line reached $16.70 billion, up 221% year-over-year, with XPUs making up 73% of that AI revenue. CEO Hock Tan told investors, according to 24/7 Wall St: "Q3 demand was simply hot and we're just getting started."
Google's Ironwood TPU v7 is shipping in volume and OpenAI's Jalapeno accelerator is ramping alongside it. Broadcom's fourth-quarter AI guidance of $21.70 billion implies 236% growth.
Marvell's Google Warrant Reshapes Its Story
Marvell Technology (NASDAQ: MRVL) reported $2.739 billion in revenue on August 27, 2026. Its Data Center segment reached $2.17 billion, up 46% year-over-year and now 79% of total revenue. CEO Matt Murphy said AI-related bookings remain exceptionally robust.
An expanded Google agreement, tied to a warrant for up to 7% of Marvell's shares, cements a multi-year custom silicon relationship spanning inference accelerators, storage controllers, and memory interfaces.
Scale and Balance Sheet Set the Two Apart
Broadcom's market cap sits near $1.70 trillion against Marvell's roughly $196 billion, and the gap shows up in full-year targets too: Broadcom guides to $115 billion in fiscal 2027 AI revenue versus Marvell's roughly $12 billion in total fiscal 2027 revenue. Broadcom's free cash flow reached $13.66 billion, or 46% of revenue, while Marvell posted $605.5 million in operating cash flow.
Broadcom's VMware unit adds $8.8 billion in revenue at a 94% gross margin, a software moat Marvell does not have. Marvell, however, leads in 800G and 1.6T optical interconnects, an area its scale-up optics business keeps expanding into.
What Comes Next
Marvell holds its Investor Day on October 6, 2026, where management is expected to quantify custom revenue through fiscal 2029 and reset its long-term target of more than $10 billion. For Broadcom, the December quarter report and any update to its $230 billion fiscal 2028 AI framework will matter more.
Broadcom's 15th consecutive dividend raise and locked-in TPU pipeline with Google, Meta, OpenAI, and Anthropic point to a lower-risk exposure profile. Marvell's 163.44% year-to-date gain already reflects real momentum, and the Google warrant raises its ceiling further. Either stock's outlook would weaken if hyperscaler capex signals crack, but neither picture shows that yet.
Source: 24/7 Wall St. (via Yahoo Finance)
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