Nvidia (NASDAQ: NVDA) continues to dominate the AI chip market with an 80% share, but the company faces increasing competition from custom AI processors. Despite its strong presence, Nvidia’s stock has risen only 8% this year, while Marvell Technology (NASDAQ: MRVL) has surged 144% amid a shift from AI training to inference, which requires less computational power.
Marvell controls 20% to 25% of the custom AI processor market and designs chips for major clients like Amazon and Microsoft, anticipating potential lifetime revenues of $75 billion from over 50 opportunities with more than 10 customers. Nvidia CEO Jensen Huang has identified Marvell as a potential trillion-dollar company, noting that their networking chips are key for AI data centers, with a current market cap of $195 billion. As Marvell is projected for significant future growth, analysts suggest it may outperform Nvidia in the long term.
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