Marvell Technology (MRVL) and Advanced Micro Devices (AMD) are rapidly capitalizing on the growing demand for artificial intelligence (AI) infrastructure. This surge is primarily driven by an increase in AI workloads necessitating high-performance CPUs and networking chips. Marvell’s fiscal first quarter of 2027 reported a 28% year-over-year revenue increase to $2.42 billion, with data center sales reaching 76% of total revenue at $1.83 billion. AMD’s data center revenues soared 57% year-over-year to $5.8 billion in Q1 2026, driven by strong demand for its EPYC server processors.
Marvell anticipates its revenues will grow by about 40% year-over-year to nearly $11.5 billion in fiscal 2027, with expectations for 2028 reaching approximately $16.5 billion. In contrast, AMD projects its server CPU market will grow over 35% annually, potentially exceeding $120 billion by 2030. Year-to-date, MRVL shares have increased by 240.8%, while AMD shares have risen by 139.3%. The valuation for MRVL is at a forward sales multiple of 18.91X, whereas AMD stands at 14.25X.
Both companies currently hold a Zacks Rank of #3 (Hold). However, AMD is viewed as the stronger pick due to its more diversified AI portfolio, which includes server CPUs, AI accelerators, and rack-scale infrastructure.
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