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.
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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.
