Marvell Technology and Taiwan Semiconductor Manufacturing Emerge as Strong Contenders in AI Chip Market
Analysts predict significant growth for Marvell and Taiwan Semiconductor in the booming AI chip industry, potentially outpacing Nvidia.
- Marvell Technology, a semiconductor company, is predicted by Citi analyst Atif Malik to be a better investment than Nvidia due to its potential in the AI chip market.
- Marvell Technology is known for making custom application-specific integrated circuits (ASICs) that are customized for AI, cloud data center and OEM customer demands.
- Major cloud service providers such as Microsoft, Alphabet, and Meta Platforms have been focused on the development of custom ASICs for tackling AI workloads.
- Morgan Stanley estimates that ASICs could account for 30% of the overall AI chip market by 2027, which could be worth $182 billion.
- Taiwan Semiconductor Manufacturing is considered a good overall value in the semiconductor industry due to its efficient business model and high margins.
