Broadcom, Marvell Ride The $30B ASIC Wave – But Only One Looks Ready For Takeoff

Broadcom Inc AVGO and Marvell Technology Inc MRVL are flexing serious silicon muscle as demand surges for custom AI ASIC chips — next-gen application-specific integrated circuits designed to outpace off-the-shelf GPUs from Nvidia Corp NVDA and Advanced Micro Devices Inc AMD.

ASIC Arms Race: Custom Chips Are The New Gold

According to JPMorgan analyst Harlan Sur, both companies have now secured 2nm design wins for AI accelerators powering hyperscalers like Alphabet Inc GOOGL GOOG Google, Meta Platform Inc META, Amazon.com Inc AMZN and Microsoft Corp MSFT.

With the total ASIC market poised to hit $30 billion in 2025 and growing at a 30% clip, Broadcom and Marvell are not just playing catch-up — they're building the racetrack.

This boom is driven by the hyperscalers' appetite for AI compute power with better performance, lower power, and reduced silicon costs. As AI models swell past 100 billion transistors per chip, these tech giants are leaning on ASIC veterans like Broadcom and Marvell to bring their custom accelerators to life – and fast.

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Broadcom Leads the Charge, Marvell Fights From Behind

Broadcom, the market leader with 55%-60% share, is already clocking in major wins: from Meta's MTIA 2nm to Google's TPU v8. JPMorgan expects Broadcom's AI revenue to hit $31 billion next fiscal year — a 60% jump. The stock, up nearly 36% in the past year, is still rated Overweight by JPMorgan, with a bullish $283.33 average price target from Citigroup, Barclays and Susquehanna.

Chart created using Benzinga Pro

Technically too, AVGO is a buy across key longer-term averages.

Marvell, trailing with a 15% share, has momentum too. It's already ramping up production for Amazon's Tranium 2 and Google's Axion CPU and has landed design wins for 2nm next-gen chips at AWS and Microsoft.

Chart created using Benzinga Pro

Yet despite its potential, the stock tells a different story — down 41% year-to-date and trading below its 200-day average. Analyst sentiment remains bullish, with Loop Capital and China Renaissance setting targets as high as $90 and $110, respectively, but the near-term setup looks shakier.

So who wins this silicon sprint?

Broadcom has the scale, the pipeline, and the technical tailwinds. Marvell may be a promising underdog – but right now, it's Broadcom that's doing the heavy lifting.

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