Broadcom, Marvell Set To Capitalize On AI Investments From Microsoft, Alphabet, Meta: JPMorgan

Benzinga - by Surbhi Jain, .

JPMorgan analyst Harlan Sur has offered important insights into current trends in cloud and hyperscale datacenter infrastructure spending. On Sunday, he emphasized the increased focus on AI and accelerated computing.

This trend – as supported by insights from major players like Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta Platforms Inc (NASDAQ:META) – points towards a robust multi-year spending cycle for AI infrastructure build-out.

Per their latest earnings reports, these companies are directing their investments towards GPUs, custom AI compute processors (ASICs), and networking infrastructure. This spells good news for chip manufacturers like Broadcom Inc (NASDAQ:AVGO) and Marvell Technology Inc (NASDAQ:MRVL).

Also Read: Google ‘Copy Pasted What META Did Last Quarter,’ Redditor On Q1 Earnings

Broadcom’s Strategic Collaborations

Similarly, Google’s emphasis on sustaining its technological edge through investments in infrastructure, including the Google TPU (co-designed by Broadcom), presents a promising opportunity for Broadcom.

Marvell’s Crucial Role in AI Infrastructure

Marvell’s involvement in ramping up Microsoft’s next-gen AI processor ASIC (“Maia”) for 2026, positions the company favorably to capitalize on the growing demand for AI infrastructure, the analyst adds.

Custom AI ASIC Programs

Networking Infrastructure

Additionally, Marvell’s forthcoming 1.6T pluggable optical transceivers are poised to support critical infrastructure for Nvidia Corp‘s (NASDAQ:NVDA) Blackwell GPU/QuantumX 800 InfiniBand switch and Google’s TPU V6/Broadcom’s Tomahawk 5 switching chipset.

What Sets Broadcom And Marvell Apart As Key Beneficiaries

With increased investments from tech giants in AI infrastructure, Broadcom and Marvell are poised to capitalize on this trend and emerge as key beneficiaries in the AI infrastructure build-out.

Read Next: Microsoft, Alphabet And Meta’s Raised AI Capex Outlook Could Benefit These JPMorgan Stock Picks

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