Key Points
Nvidia’s market cap surged from under $200 billion in 2020 to over $5 trillion in April 2026. In the first four months of 2026, Nvidia’s stock increased by 7%, outpacing the S&P 500. However, Marvell Technology has outperformed Nvidia with a staggering 95% increase, reflecting a shift in spending on AI chips among major data center operators.
Custom AI chips, known as application-specific integrated circuits (ASICs), are emerging as a cost-effective alternative to Nvidia’s general-purpose chips. Alphabet has partnered with Broadcom for custom chips and recently announced collaboration with Marvell. Marvell’s data center revenue grew by 46% to $6.1 billion in fiscal 2026, and its AI accelerators, XPUs, are experiencing rapid sales growth.
Counterpoint Research anticipates that shipments of custom ASICs will triple by 2027 compared to 2024 levels. Nvidia continues to expect significant revenue, projecting $1 trillion in orders for its platforms through 2027. Despite competition, Nvidia remains optimistic about ongoing growth in AI solutions.
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