The Zacks Analyst Blog Highlights Alphabet, Marvell, Broadcom and NVIDIA

For Immediate Release

Chicago, IL – August 21 2026 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc.’s GOOGL, Marvell Technology, Inc. MRVL, Broadcom Inc.’s AVGO and  NVIDIA Corporation’s NVDA.

Here are highlights from Friday’s Analyst Blog:

Marvell vs. Broadcom: One AI Stock Sitting Pretty After Google's Deal

Alphabet Inc.’s Google is broadening its custom artificial intelligence (AI)-chip supply chain through a new partnership with AI networking chipmaker Marvell Technology, Inc. The deal would strengthen the position of the latter, while raising concerns about Broadcom Inc.’s role as a major supplier.  

So, now the key question is: does the deal make Marvell a better AI stock to buy than Broadcom? Let’s take a closer look –  

Google’s Marvell Deal Challenges AVGO’s AI Chip Dominance 

For quite some time, Alphabet-owned Google and other blue-chip companies have been developing custom AI chips to find more cost-effective alternatives to NVIDIA Corporation’s advanced chips.  

Alphabet’s Google has primarily collaborated with Broadcom to develop its custom chips. In April, Broadcom confirmed that it had extended its partnership with Google through 2031, under which it will provide the company with tensor processing units (TPUs) and networking equipment. 

However, Google recently entered into a partnership with Marvell focused on TPUs, including accelerators, storage and network interface controllers. The Google AI chip deal allows Marvell to sell up to $12.2 billion in shares to Google.  

The partnership and Google’s warrant expand Marvell’s hyperscaler customer base and bolster its long-term growth prospects. The strategic deal aligns Google’s interests with Marvell’s growth ambitions and establishes the latter as a key supplier of custom AI silicon to hyperscalers, a role the company has pursued for years. 

But the deal with Marvell doesn’t mean that Google is moving away from Broadcom. It simply means Google is looking for more than one custom-chip partner. Still, the deal could reduce Broadcom’s share of Google’s future AI-chip spending, potentially weigh on its business and create a competitive challenge for the company. 

After Google’s Deal, Is Marvell a Better Buy Than Broadcom? 

Google’s partnership with Marvell to diversify its custom AI-chip supply chain has strengthened Marvell’s position as a key supplier of custom AI silicon to hyperscalers, while posing a competitive threat to Broadcom.  

Broadcom remains heavily dependent on AI-related spending, and its relatively concentrated AI customer base could leave it vulnerable to a slowdown in AI infrastructure investment or weaker demand from hyperscalers.

Following the announcement, Broadcom’s share fell roughly 5% on Wednesday as investors remained concerned about its position with Google. On the other hand, Marvell’s shares jumped more than 9% as the deal has given the company a much larger role in the rapidly expanding AI-chip market.

Moreover, Broadcom’s debt-to-equity ratio of 71.5% far exceeds Marvell’s 27.2%, indicating greater financial leverage and possibly higher downside risk if economic conditions worsen.

So, all things considered, Marvell appears to be the more attractive buy following the Google deal, positioning it for sustained growth as demand for custom AI silicon continues to increase. As a result, Marvell’s expected earnings growth rate for the current year is 42.3%. The Zacks Consensus Estimate of $4.05 for MRVL’s earnings per share is up 19.8% year over year.

Marvell currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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