MRVL — All updates

Another set of companies to consider looking at is going to be Broadcom and Marvell. And in fact, Marvell also reports this week, later in the week. These companies are more nuanced because Broadcom and Marvell benefit from AI spending, but it also represents one of Nvidia's biggest long-term threats.

Why? Custom silicon. Google, Meta, OpenAI, other hyperscalers, these companies increasingly want AI accelerators designed specifically for their own workloads. Broadcom and Marvell help enable those chips.

So, if Nvidia says overall AI infrastructure spending continues exploding, that's great for both Broadcom and Marvell. But if Jensen starts discussing competitive pressures from custom accelerators, that's another important positive signal for both of these companies.

This is why I own exposure to both sides of the equation. I own Nvidia, AMD, and then Broadcom and Marvell, but position sizing is different for all of them. Nvidia benefits from general-purpose accelerated computing.

Broadcom and Marvell benefits as hyperscalers increasingly design specialized silicon. I don't need to perfectly predict which architecture wins.

This comes as Marvell Technologies. We're not talking about the comic books. We are talking about the custom semiconductor maker, often playing a backseat to the likes of Broadcom, even AMD.

Well, Marvell is jumping to the top of the list of Google as they signed a chip deal including issuing warrants to the company. We've seen this over at AMD. They had issue a huge chunk of the company to open AI and Meta.

Marvell doing the same with Google. This gives Google obviously a huge incentive to deal with Marvell because they essentially are allowed the right to buy shares of Marvell at just $206 per share.

I think don't quote me on this, but I think it was about 6% of the company. So if Marvell stock continues to rise and currently it's at 237, well Google of course would exercise those rights cuz they're getting the stock at a tremendous discount.

Also obviously incentivizes them to buy from Marvell to juice their revenue, to juice the stock price, and just make those warrants worth even more. You do have to factor that in as a shareholder as those rights essentially dilute you as a shareholder and in some ways can be a very expensive way to sell GPUs in the hottest chip market that we've ever seen.