JPMorgan: Bullish on Broadcom and Marvell Technology in the AI wave
According to Morgan Stanley's prediction, chip stocks will dominate the key artificial intelligence market. Analyst Harlan Sur said that the high-end application-specific integrated circuit (ASIC) market, which is worth $14 billion, will grow at a rate of 20% per year in the future.
Morgan Stanley predicts that chip stocks will dominate the key artificial intelligence market.
Morgan Stanley said that as demand for dedicated integrated chips rises, both Broadcom and Marvell Technology will perform well.
On Thursday, analyst Harlan Sur said that the high-end dedicated integrated circuit (ASIC) market, which is worth $14 billion, is expected to grow at a rate of 20% per year in the future.
He wrote: "ASIC has accelerated in the past few years, and a good example is the active adoption of generative artificial intelligence, which has accelerated the demand for ASIC." "We believe that Broadcom and Marvell will be the biggest beneficiaries of the ASIC recovery."
Sur estimates that Broadcom has more than 80 ASIC chip design contracts, while Marvell has more than 40 design contracts in preparation.
He said that Broadcom is the leader with a 35% market share, while Marvell ranks second with a 15% market share.
Sur's rating for Marvell's stock is buy, with a target price of $70. He currently has no rating for Broadcom.
