Marvell or Broadcom? Morgan Stanley Picks the Better Chip Stock Post-Earnings

Morgan Stanley’s top analyst Joseph Moore raised his price targets on chip stocks Marvell Technology MRVL +0.70% ▲ and Broadcom AVGO -0.92% ▼ after they reported quarterly results last week. He remains more optimistic about Broadcom than Marvell due to its lead in custom ASICs (application-specific integrated circuits), which outperform GPUs like Nvidia’s NVDA +1.16% ▲ in power efficiency and cost at scale for specialized AI tasks like inference. However, they lack GPUs’ flexibility for diverse workloads.

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Moore maintained his Buy rating on Broadcom, while lifting his price target from $462 to $470, implying 42.2% upside potential. For Marvell, he reiterated his Hold rating and raised the price target from $95 to $103, suggesting nearly 15% upside.

Moore is a five-star analyst on TipRanks, ranking #215 out of 12,127 analysts tracked. He has a 58% success rate and an average return per rating of 21.30%. Here’s a brief look at his views on both stocks.

Broadcom Delivers a Strong Quarter

Broadcom’s adjusted earnings per share (EPS) of $2.05 beat the consensus of $2.03 in Q1 FY26. Revenue surged 29% year-over-year to $19.31 billion, surpassing expectations of $19.18 billion. Since its earnings on March 4, AVGO stock has gained nearly 7%.

Moore views Broadcom as a leader in custom ASICs for AI and networking. He credited its strong quarterly performance to hyperscaler demand for its 7nm/5nm AI chips and Tomahawk switches. Moore cited key upside drivers like reduced margin pressures, networking beats, clearer FY27 AI growth visibility, and scaling ASIC programs with clients like Google GOOGL +0.22% ▲ and Meta META +1.03% ▲ .

Marvell’s Management Confident on Scaling

Marvell also beat Q4FY26 expectations, posting adjusted EPS of $0.80 on $2.22 billion in revenue. This slightly topped analyst consensus of $0.79 EPS and $2.21 billion in revenue. MRVL stock skyrocketed 18.3% on Friday, March 6, after the results.

Moore highlighted that Marvell competes with Broadcom in AI data center networking via custom interconnect ASICs, electro-optics, and high-speed Ethernet chips like its Teralynx series. He was impressed by Marvell’s strong results, upward guidance revisions, management’s growing optimism on AI demand durability, and near-term momentum from interconnect strength matching supply chain buzz around hyperscaler builds.

Which Is the Better Chip Stock According to Analysts?

According to TipRanks’ Stock Comparison Tool, analysts have assigned a “Strong Buy” consensus rating on both AVGO and MRVL stocks, with Broadcom stock offering a higher upside potential over the next twelve months. AVGO stock also carries a higher dividend yield compared to MRVL.

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