MRVL faces multiple compression due to intense competition in the next upgrade cycle, despite strong custom ASIC business.

You have Marll in a draw down. Both of those companies have just been reporting some of the greatest news and contracts and earnings any of us will ever see, but that was already priced in six months prior.

Marll is coming on very strong. Broadcom is coming on very strong. He's comp Let's take Marll. Marll is building custom AS6 for customer. Amazon's their biggest customer. So Amazon's building tranium chips which are application specific integrated circuits.

They do not have as broad of a use as a GPU. They're not as powerful. They're not clustered the same way. you know, you take a take a take a cluster of 10,000 chips and and put them in.

It's not the way that's being done. But Amazon its tranium line of chips, Alphabet's making chips, Microsoft is making chips, Meta, Apple is making its own chips. They're they're utilizing application specific integrated circuits.

And that custom chip making for the hyperscalers is coming out of Marll. This doesn't mean Amazon's not buying GPUs. doesn't mean uh Gemini is running without GPUs, but it is new competition for the buildout of compute.

Why would they want to use AS6? Well, if they build them themselves, they can customize them for exactly the uses within their data centers that they see as being important. Okay, so that's what Marll is doing.

And a lot of people either aren't doing this long enough to have learned that or forgot about it. But I do think there's a gravity that is pushing down on the multiples of Marll, of Nvidia, of Broadcom.

They understand that these companies are going to go into a phase where they rip each other's throats out for the next upgrade cycle and not everybody can win and that is why they're not selling at 30 or 40 times earnings the way that they were three years ago.

But I do think there's a gravity that is pushing down on the multiples of Marll, of Nvidia, of Broadcom. They understand that these companies are going to go into a phase where they rip each other's throats out for the next upgrade cycle and not everybody can win and that is why they're not selling at 30 or 40 times earnings the way that they were three years ago.