Marvell’s 52% gross margins lag Broadcom’s 67%, widening valuation gap as both ride AI demand growth.
Marvell Technology reported Q1 FY2027 revenue of $2.42B, up 27.6% YoY, driven by $1.83B in Data Center sales. AI-related bookings surged, but GAAP gross margins held at 52.1%, reflecting hyperscaler pricing power.
Broadcom posted Q2 FY2026 revenue of $22.19B, up 47.9% YoY, with AI semiconductor revenue jumping 143% to $10.8B. Its 67% gross margins and 46% free cash flow margin highlight structural advantages over Marvell’s custom silicon model.
Marvell trades at 68x forward P/E versus Broadcom’s 33x, despite lower profitability. The gap underscores investor preference for Broadcom’s software-driven annuity streams and higher-margin hardware.