Coming AI Chip Stock Crash? Why Broadcom and Marvell Technology May Not Be As Cyclical As You Think

In this video, Chip Stock Investor discusses why Broadcom (AVGO) and Marvell Technology (MRVL) are not the cyclical semiconductor stocks the market seems to think they are. These two companies have business models that are well-positioned to withstand the ups and downs of the semiconductor market. At a recent investor event, Broadcom CEO Hock Tan explained how his company manages some of the ups-and-downs with selling chips to big data center customers.

Broadcom is a leading supplier of semiconductor solutions for the data center, enterprise networking, and carrier infrastructure markets. The company's products are used in a wide range of applications, including cloud computing, AI, and 5G. Marvell Technology is a close peer, similarly selling chips used for storage, networking, and connectivity. The company's products are used in a wide range of devices, including servers, 5G networks, and automotive.

If you are looking for semiconductor businesses that exhibit less cyclicality, then Broadcom and Marvell Technology might be two good options to consider. These companies have strong business models that are well-positioned to withstand the swings in the semiconductor market, and offer great buying opportunities when investor pessimism is running high.

What to watch next:

#broadcom #networkcomputing #fabless #chipfabricator #datacenters #enterprisecomputing #artificialintelligence #ai #financeeducation #chipstocks #finance #stocks #investing #investor #financeeducation #semiconductor #semiconductors #stockmarket #chipstockinvestor #fablesschipdesign #chipmanufacturing #semiconductormanufacturing #semiconductorstocks

Thank you for watching and please hit the subscribe button for more great content like this! 👇

☕☕☕If you feel so inclined please show your support here by fueling our caffeine addiction 👇

In this video we used data, charts and KPI's from our friends at Main Street Data. If you would like to check it out and subscribe to a premium membership here is a link that will get you 10% off👇

You can also find us on Apple and Google Podcasts!

Chapters:
0:00 Why do we like Broadcom and Marvell Technology?
09:30 Broadcom & Marvell Technology-- Enterprise computing suppliers
13:55 Why is Apple Such A Powerhouse?
16:20 What Are the Risks From This Business Model?

Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.

Nicholas Rossolillo owns shares of Broadcom, Apple, AMD, Nvidia, & Marvell Technology.

[chipstockinvestor]

☕☕☕If you feel so inclined please show your support here by fueling our caffeine addiction 👇

[sagig]

Fantastic video. Broadcom is one of the better run companies overall, underrated especially compared to NVDA and the other retail popular stocks. Hock Tan is very smart and prefer to 'partner' with customers rather than 'supply' them. The are diversified, the software is stabilizing them and with VMWare they'll not even be a real semi conductor conventional company anymore. They're more a 'private equity fund' than a semis business.

[alexsassanimd]

Great content. Love ❤ the Channel. We are not in a chip AI bubble yet. When you get 10K views in 1-2 hours, then we could be in a bubble. Can’t believe others haven’t discovered this gem.

[Carol-cbyu]

Ok..ok...I'll buy them back. I recently was "assimilated" to the Borg (Apple), lol. My first smart phone was an iPhone and it was ok. We have had Androids ever since. Like you, we were satisfied. Recently someone close to me had a medical emergency with no action to alert me. I needed to get the new cellular connected Apple watch as a fail safe. On the wrist, anywhere. No need for a phone. Emergency connection to 911 or me. Two phones + 2 watches later I am won over. It is addictive. The products develop an addiction in you. My previous opinion was that everyone who wanted a smart phone had one. I see a much longer road ahead. Great video, thanks.

[philippfiat]

Thank you for your very informative Videos! Greetings from Austria!

[jesseself]

I chose Marvell over Broadcom years ago when there were rumors of Apple dropping Broadcom to make it's own homegrown components, which I still think will happen one day. I haven't followed Broadcom as closely, but Marvell has been investing heavily in R&D for years and I truly can't wait to see the benefits of that a few years from now.

[derribandogigantes]

Marvell, incredible potential to grow

[tar]

would this video also apply to NVDA? I would assume so since they are going after the same market

[dannytrader]

Awesome videos, thank you! Is Qualcomm still your #1 for this year?

[Matthewbyrd]

I'd be interested to see your takes on SiC - there may be value yet in certain stocks: Rohm, STM, COHR, Infineon, but is chasing WOLF and ON a recipe for pain? Be curious on your take. I've been leaned in a bit on the former three over the past year. Then there's the ancillaries: AMAT, ACLS, AEHR. Then there's also VECO who's looking to enter the market (Veeco looks interesting for a couple reasons IMO).

[valueinvestor]

What is your current sentiment on KLA? Should I wait for a further pull back or invest now?

[hyp-o-crite-]

only big company and only when it make sense, samsung is already doing that, huawei is doing it also but you see what happen
there are reasons why businesses donate to politicians

[tar]

when is A.I going to design its own chip? haha

[jasonalexander-uj]

Hi, I do believe the industry will eventually turn into a secular market. based on the estaminets that this will be a trillion industry by 2030, 2031 ? But the cyclicality of the market is in my opinion is set by design. They use these cycles is to work off excess inventory before they move out the wave of new technology, case and point, this wave in AI. We all know that everybody has been working on this for years, but there using this to start a new wave of the cycle, don't you think it's funny that all of this happening at the bottom of the cycle. As far as Broadcom goes the only problem I have is there growth through acquisition strategy, when I educated myself 20 plus years ago in the end this not work out well. Where is the organic growth or is the only way they can grow there company. Where is the the innovation coming from? Don't mean to be blunt, but I just felt the need to express opinion and maybe give some food for thought