Episode 16: Coming AI Chip Stock Crash? Why Broadcom and Marvell Technology May Not Be As Cyclical As You Think

Jul 13, 2023

The podcast dives into why Broadcom and Marvell Technology are misidentified as cyclical stocks. It highlights how their business models are tailored to endure market fluctuations, focusing on their clientele in big data centers. Both companies supply crucial components for cloud computing, AI, and 5G, showcasing their versatility in a dynamic market. Additionally, it hints at the promising stability these stocks offer when investor pessimism peaks, making them attractive options for savvy investors.

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The Stability of Enterprise-Centric Semiconductor Stocks

00:00 • 23min

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. Make sure you check out our Semiconductor Manufacturing Equipment Index. Sign up here: 👉👉👉👉Google Form link https://forms.gle/u1HLCtcwAXitt45y9 ☕☕☕If you feel so inclined please show your support here by fueling our caffeine addiction 👇 https://ko-fi.com/chipstockinvestor 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👇 https://mainstreetdata.com/subscription?via=chipstockinvestor 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.