Wall Street's AI trade may be expanding beyond graphics processors, with investor Gary Black arguing that custom chipmakers Broadcom, Inc. (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL) are emerging as some of the biggest beneficiaries of rising demand for specialized AI infrastructure.
Gary Black Says Wall Street Is Rewarding Custom AI Chip Leaders
On Tuesday, Black said Broadcom and Marvell "seem to be the big winners in Wall Street's new appreciation for custom AI chips," pointing to growing investor enthusiasm around application-specific integrated circuits, or ASICs, used to power large-scale AI workloads.
The comments came as Marvell shares surged after Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang called it "the next trillion-dollar company" during a joint appearance with Marvell CEO Matt Murphy at Computex in Taiwan.
Broadcom shares climbed 4.7% Tuesday and added 2.79% in after-hours trading ahead of earnings, while Marvell rallied 32.52% during the regular hours and increased 9.64% in after-hours trading, according to Benzinga Pro.
