JPMorgan Says Broadcom, Marvell Could Dominate AI's Next Frontier — Here's Why

The AI revolution isn’t just about chips—it’s about the high-speed highways that move data between them. According to JPMorgan analyst Harlan Sur, Broadcom Inc AVGO and Marvell Technology Inc MRVL are at the center of this networking build-out, making them prime beneficiaries of the AI boom.

Networking Demand Surges with AI Compute

Sur highlights that the rapid expansion of accelerated computing – powered by Nvidia Corp‘s NVDA Blackwell GPUs, Alphabet Inc‘s GOOGL GOOG Google’s TPUv6, and Amazon.com Inc's AMZN Trainium 2 – is fueling an insatiable need for faster networking. As hyperscalers scale out their data centers, demand for 800G and next-gen 1.6T networking solutions is set to soar through 2025 and beyond.

At the OFC Networking Conference this week, Broadcom showcased its dominance in high-performance switching, with its Tomahawk 5 and Jericho 3 chipsets seeing strong demand. The company is also gearing up for the launch of its 3nm Tomahawk 6 later this year, further strengthening its AI networking footprint.

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Marvell: The King Of PAM4 DSPs

Marvell continues to dominate the PAM4 DSP market, commanding over 70% market share and generating more than $1.5 billion in revenue from this segment in 2024.

The company is leading the charge in next-gen 1.6T AEC and silicon photonics (SiPho) solutions, positioning itself to capitalize on both scale-out and scale-up networking demand. With strong AI-ASIC ramps in the pipeline, Marvell's data center business looks set for solid Q/Q growth through the rest of the year, the analyst said.

Broadcom: The Networking Powerhouse

Broadcom, meanwhile, is flexing its dominance in high-performance networking. Its Tomahawk 5 switch (51.2Tbps throughput) is already in high-volume production, and the next-gen Tomahawk 6 (102Tbps) is expected to drop later this year. AI-related networking revenue is up over 60%, and Broadcom's deep lineup of scale-out and scale-up solutions—ranging from PCIe Gen5 connectivity to co-packaged optics—keeps it ahead of the pack, according to Sur.

Actionable ETFs for Investors

For those looking to gain exposure to this AI-driven networking surge, iShares Semiconductor ETF SOXX and VanEck Semiconductor ETF SMH both hold significant positions in Broadcom and Marvell, making them prime ways to ride this wave.

With hyperscalers racing to upgrade their AI infrastructure, Broadcom and Marvell are sitting in the sweet spot.

With demand for ultra-high-speed networking solutions on the rise, these two semiconductor leaders appear well-positioned for further growth.

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