Is Marvel finally closing the gap on Broadcom? Kramer thinks so

• Broadcom ( AVGO ) is up 524% since January 2023 with quarterly AI revenue of $8.4B. Marvell ( MRVL ) is up 152%, down 50% since March, with $2.07B revenue up 38% to $1.52B from data centers.

• Broadcom’s AI revenue alone is four times Marvell’s total revenue, but Marvell’s data center growth is accelerating despite earlier concerns about Amazon’s loss.

• An analyst named NVIDIA just named his top 10 AI stocks in 2010. Get it for free here.

Jim Cramer recently made an interesting observation, and it’s worth unpacking for anyone looking into the AI ​​chip space. “While Broadcom has been the biggest winner in the AI ​​era, up nearly 500% since the start of 2023, Marvell has only grown about 140% over the same period.” The data backs him up almost exactly: Broadcom is up 524% since January 2023, while Marvel has gained 152% over the same period. Same AI tailwind, dramatically different results. So what happened, and is the gap finally closing?

Both Broadcom (NASDAQ: AVGO) and Marvel Technologies (NASDAQ: MRVL) sit in the center of a conventional silicone boom. Hyperscalers don’t want to be completely dependent on NVIDIA. They want chips designed specifically for their workloads, and these two companies are the architects that help them build them. Broadcom does it for Google. Marvell does this for Amazon Web Services.

Business models discipline, but don’t scale. Broadcom’s AI revenue reached $8.4 billion in just one quarter, while Marvell’s total Q3 FY2026 revenue reached $2.07 billion. Broadcom’s AI division is four times the size of everything Marvel sells combined.

READ: The analyst named NVIDIA in 2010 Just naming his top 10 AI stocks

Kramer told the story clearly. Marvel has fallen more than 50% in less than three months, thanks largely to a softer-than-expected quarter last March. It’s heartbreaking for every shareholder. But the company spent the rest of the year in recovery, posting a series of strong quarters and hitting $102 in early December before reports emerged that it might lose the Amazon business.

The latest numbers suggest Amazon’s fears are over. Data center revenue grew 38% year-over-year to $1.52 billion in 3Q3, representing 73% of total revenue. CEO Matt Murphy didn’t hold his tongue either:

“Our data center revenue growth forecast for next year is now higher than previously expected.”

This is not a company that will lose its anchor customers.

Here’s where it gets interesting for two-weight investors. Broadcom trades at a forward PE of around 32x at around 69x trailing earnings, with analysts targeting $467. Marvell looks cheap at nearly 27x trailing earnings and 23x forward, with a consensus target of $118 versus a current price of $89.57. Marvel also has a beta of about 2.0, which means it’s going hard on both sides.

The gap between these two stocks since 2023 is real and wide. Broadcom earned its premium through sheer scale and execution. Marvell’s data center move, custom silicon pipeline, and Amazon relationship will be key factors analysts look at to determine if the performance gap between the two narrows moving forward.

Wall Street is pouring billions into AI, but many investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buyback in 2010 — before its 28,000% run — has identified just 10 new AI companies that he believes can deliver returns beyond that point. One dominates the $100 billion equipment market. Bill addresses the single biggest obstacle to maintaining AI data centers. The third segment is a net play in the optical network market that is quadrupling. Most investors haven’t heard of half of these names. Get a free list of all 10 stocks here.