Nvidia has seen a significant increase in demand for its graphics processing unit (GPU) chips thanks to the rapid development of artificial intelligence (AI). However, at 202 times earnings, the stock may be too expensive for some investors. Instead, Marvell Technology, another chipmaker, could provide a more cost-effective investment option. Although Marvell’s revenue fell 9% in the last quarter, management expects AI to produce a significant boost in revenue in the coming years. The deployment of AI infrastructure is expected to create a quick need to refresh data center infrastructure, increasing Marvell’s addressable market. At 9.6 times sales, Marvell is cheaper than Nvidia and could be a more affordable way to invest in the growing AI market.
Marvell Technology is a semiconductor company that provides mixed-signal and digital signal processing products for use in the telecommunications, storage, and computing markets.
Matt Murphy is the CEO of Marvell Technology.
