Marvell Technology beats Intel as better AI chip buy

The case for Intel rests on a turnaround that is starting to show in results. In the quarter ended June, revenue rose 25% from a year earlier and the company swung to an operating profit, though a large net loss came from a non-cash charge tied to shares held in escrow for the government. The foundry segment is still losing money, and funding it has meant issuing about $23 billion of new shares in August 2026, roughly a year after the U.S. government took its stake.

Marvell takes the opposite approach, leaving manufacturing to others. Its latest quarter, ended Aug. 1, set a revenue record, with data center products accounting for nearly 80% of sales, and management expects growth to accelerate through fiscal 2027. The trade-off is customer concentration, illustrated by the warrant issued to Alphabet's Google that ties vesting mostly to custom-chip revenue milestones, showing large buyers can claim a share of the upside.

Both stocks trade at steep forward P/E ratios, and Marvell is the more expensive on price-to-sales. That makes the choice less about which company is healthier than about which risk an investor prefers: Intel's capital-heavy buildout, which could reward patient shareholders if outside customers fill its foundry, or Marvell's faster growth with a narrower customer base. The outcome likely hinges on whether Intel's foundry losses narrow and whether Marvell's largest customers keep spending at recent levels.