Marvell stock is trading at 55 times forward earnings after a 161.64% year-to-date rally, a valuation gap that has widened as Broadcom and Marvell Technology both reported earnings and clarified their positions in custom AI silicon. Investors in MRVL now have to weigh a much richer multiple against a faster growth profile that still depends on execution.
Broadcom's 70% AI silicon scale
Broadcom posted $22.2 billion in quarterly revenue and $10.8 billion in AI chips revenue, with AI semiconductor revenue rising 143% year over year. That scale matters because Broadcom commands about 70% of custom AI silicon co-design, while Marvell Technology holds about 20%, leaving MRVL in the challenger slot even after its run-up.
Hock Tan said FY2027 AI revenue would be in excess of $100 billion, and Broadcom's Q3 guidance calls for $16 billion in AI revenue. He also pointed to 10 gigawatts of shipments planned for 2027 across Google TPUs, Meta MTIA, OpenAI, and Anthropic, a pipeline that shows how deeply the larger name is embedded in the buildout.
Matt Murphy lifts FY2028
Marvell Technology posted $2.418 billion in revenue, with data center accounting for 76% of the mix. Matt Murphy raised FY2027 revenue to about $11.5 billion and FY2028 revenue to about $16.5 billion, while saying that “the level of custom engagement with key customers remains unprecedented.”
Marvell aims for a $10 billion custom silicon run rate by FY2029, which leaves a long runway between today's revenue base and the target the company is now putting in front of investors in MRVL. The question is how much of that path is already locked in by customer commitments and how much still relies on new wins, delivery timing, and the next steps in Celestial AI execution and the XPU program.
AVGO's 21 versus MRVL's 55
AVGO trades at a forward multiple of 21, while MRVL trades at 55, even though Broadcom's AI revenue base is far larger. Broadcom's operating margin is 67%, and VMware has a 93% software gross margin, which helps explain why the incumbent still carries a scale premium in the business model while Marvell carries the market's higher growth bet.
Broadcom and Marvell are both building ASICs for AI customers, but the gap between 21 and 55 leaves investors in MRVL paying for execution that has to keep matching the valuation. If the growth path from $11.5 billion to $16.5 billion lands on time, the stock has room to justify its multiple; if it slips, the premium becomes harder to defend.
