Marvell (MRVL) vs. AVGO and NVDA: Can AI Interconnect Growth Deliver the Earnings Its Premium Valuation Demands? Ricardo Pillai Sun, August 9, 2026 at 11:19 AM PDT 6 min read MRVL AVGO NVDA Is MRVL a good stock to buy? We came across a bullish thesis on Marvell Technology, Inc. on Compounding Your Wealth's Substack by Sergey. In this article, we will summarize the bulls' thesis on MRVL. Marvell Technology, Inc.'s share was trading at $211.02 as of August 6th 2026. MRVL's trailing and forward P/E were 64.45 and 46.30 respectively according to Yahoo Finance. Is Cathie Wood’s ARK Signaling a Major Rotation With Its Shopify (SHOP) Sale and Taiwan Semiconductor Manufacturing Company (TSM) Buy Marvell Technology designs chips and networking gear used to build AI infrastructure, and its most important growth engine right now is the Data Center segment. As AI companies build bigger clusters of computers, they need faster connections and more specialized chips to keep data moving efficiently, and Marvell supplies several of the pieces needed for that job. In the latest quarter, revenue grew 27.6% year over year to $2.42 billion, an acceleration from 22.1% growth in the prior quarter, while Data Center revenue rose 27.2% to $1.83 billion. These are strong numbers, but the stock is also priced for continued strong growth, trading at 20.3 times enterprise value to sales and nearly 51 times forward earnings multiples that assume the company keeps delivering results like this for years to come. Read More: 15 AI Stocks That Are Quietly Making Investors Rich Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential The bullish argument is that as AI computing clusters grow larger and more complex, they will need more custom chips, more networking capacity, and faster interconnects, and Marvell can benefit from all three at once both as more AI infrastructure gets built and as each new system needs faster connections between processors, memory, and networking equipment. The numbers back this up so far: Data Center now makes up about 76% of Marvell's total revenue, making it the main driver of the company's improving growth rate rather than just one contributor among many. Management also raised its long-term outlook, lifting its fiscal 2027 revenue forecast by more than $500 million and its fiscal 2028 forecast by around $1.5 billion, putting fiscal 2028 revenue at an expected $16.5 billion. The interconnect business stands out in particular, with growth for fiscal 2027 now expected to top 70% year over year a sign that management expects this demand to continue well beyond one strong quarter. If AI customers keep building bigger systems, Marvell should have several more years of growth ahead across custom chips, networking, and interconnects. An expanded partnership with NVIDIA, covering silicon photonics, NVLink Fusion integration, and AI radio networking, gives Marvell even more ways to participate as this AI buildout continues. Story Continues Profitability is also moving in the right direction. Gross margin expanded to 52%, up 190 basis points from a year...
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