Marvell and Broadcom shares fall sharply; Marvell gains 28.5% YTD after Nvidia CEO calls it next 'trillion-dollar company,' while Broadcom drops 14% following tepid guidance.

Marvell rallied after Nvidia CEO Jensen Huang called the chipmaker the next 'trillion-dollar company,' and the stock will join the S&P 500 before trading on June 22. Broadcom issued forecasts that did not meet market expectations, triggering a selloff across major AI-related stocks.

Broadcom is a diversified AI infrastructure giant with a market value above $2 trillion and annual revenue exceeding $90 billion, supplying custom AI processors and networking hardware to hyperscalers. Marvell is a smaller, more focused company with a market value of over $230 billion and annual revenue of about $6 billion, specializing in optical networking and data-center interconnects.

Year-to-date, Marvell stock has gained 28.5% while Broadcom shares are down 14%. Broadcom now trades at a 24.5x forward P/E ratio versus Marvell's 58.1x, and has stronger analyst support with 44 of 48 analysts rating it a buy compared to Marvell's 38 of 44.

In the last quarter, Broadcom's revenue surged 48% to $22.2 billion, while Marvell's revenue rose 27% to $2.4 billion, its slowest pace in the last five quarters.