Morgan Stanley analyst Joseph Moore increased the price targets for Marvell Technology and Broadcom following their quarterly earnings reports. He emphasized that Broadcom is the more favored choice due to its leadership in custom application-specific integrated circuits (ASICs), which are more efficient and cost-effective than GPUs for certain artificial intelligence tasks.

Moore maintained a "Buy" rating on Broadcom, raising the price target from $462 to $470, implying approximately 42% upside potential. He kept a "Hold" rating on Marvell, increasing the price target from $95 to $103, suggesting nearly 15% potential gains.

Broadcom reported adjusted earnings per share of $2.05 for the first quarter of fiscal year 2026, surpassing the consensus estimate of $2.03. Revenue increased by 29% year-over-year to $19.31 billion, exceeding expectations of $19.18 billion. Moore noted that strong demand from hyperscale data centers for its 7-nanometer and 5-nanometer AI chips, as well as Tomahawk switches, were key drivers. He also mentioned reduced margin pressure, better-than-expected networking performance, and improved visibility for AI growth in fiscal year 2027.

Marvell reported adjusted earnings per share of $0.80 and revenue of $2.22 billion for the fourth quarter of fiscal year 2026, slightly above expectations. Moore highlighted Marvell's growing confidence in AI data center networking, interconnect ASICs, and strong management guidance, but he continues to favor Broadcom's scale advantages and efficiency in the custom chip sector.