By The Globe and Mail
Publication Date: 2026-03-18 18:43:00
Key Points
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Broadcom and Marvell are sitting on a lucrative opportunity in custom AI chips, which are in high demand.
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Both of these companies have a strong customer base and expect AI revenue to accelerate.
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However, the valuation suggests that one of them could be a better buy right now.
Graphics processing units (GPUs) have been the go-to chips for hyperscalers and artificial intelligence (AI) companies in the past three and a half years. That’s not surprising, as GPUs pack massive parallel computing power, making them ideal for carrying out vast calculations simultaneously that are needed for AI model training and inference.
However, GPUs have been losing ground to another type of chip known as application-specific integrated circuits (ASICs). These ASICs, popularly known as custom processors, are designed for specific tasks. As a result, they differ from GPUs, which are general-purpose chips. Since ASICs are custom-made to perform a specific task, they are reportedly 30% to 40% more…
