Marvell and Broadcom Stocks Are on Fire. They’re Not Done Yet.

Source: barrons.com

TL;DR

• Broadcom and Marvell stocks surged in April on AI processor deals and optical-networking enthusiasm.
• Broadcom up 31% trading at 22x 2027 EPS with $450 target; Marvell up 41% at 24x with $170 target.
• Oppenheimer analyst names both top picks ahead of semiconductor earnings due to undervaluation and partnerships.

The story at a glance

Broadcom and Marvell have been strong performers as investors favor their custom AI processors and networking businesses. Oppenheimer analyst Rick Schafer calls them top picks before earnings season, citing Broadcom's extended chip-design deals and Marvell's optical components momentum. The article came out amid April gains, with shares closing Friday at $406.54 for Broadcom and $139.69 for Marvell.[[1]](https://www.barrons.com/articles/marvell-stock-broadcom-price-b4f6add8)

Key points

• Broadcom shares rose 31% in April, trading at 22 times forecast 2027 EPS versus 28 times average for other AI chip firms.
• Marvell shares climbed 41% in April, at 24 times 2027 EPS forecast.
• Broadcom closed Friday up 2% at $406.54; Oppenheimer target $450.
• Marvell ended Friday up 4.7% at $139.69; Oppenheimer target $170.
• Broadcom extended several AI processor design deals.
• Marvell benefits from optical-networking components and relationships with AWS and Microsoft.
• Marvell's acquisitions of Celestial AI and XConn aid scale-up networking growth.

Details and context

Oppenheimer's Rick Schafer highlights Broadcom's franchises in networking, wireless, broadband, server/storage, and software for sustainable growth and cash returns. Marvell's recent networking buzz builds on its positioning for long-term custom chip work with cloud giants. Both trade at discounts to AI chip peers, suggesting upside potential into earnings season.[[1]](https://www.barrons.com/articles/marvell-stock-broadcom-price-b4f6add8)

Key quotes

• “Broadcom’s sustainable growth and cash return supported by core networking, wireless, broadband, server/storage, and software franchises.” — Rick Schafer, Oppenheimer[[1]](https://www.barrons.com/articles/marvell-stock-broadcom-price-b4f6add8)
• “Key relationships with AWS and Microsoft [are] on track. Celestial AI and XConn acquisitions position Marvell for future scale-up networking growth.” — Rick Schafer, Oppenheimer[[1]](https://www.barrons.com/articles/marvell-stock-broadcom-price-b4f6add8)

Why it matters

Strong runs in Broadcom and Marvell reflect investor shift toward diversified AI and networking plays beyond pure chip leaders. Investors get exposure to undervalued semis with solid partnerships and growth drivers at lower multiples than peers. Watch semiconductor earnings for confirmation of demand trends, though results could shift targets.