Marvell Technology beats AMD for 2027 on 40.1x vs 68.5x P/E

The comparison between Advanced Micro Devices and Marvell Technology comes as AI spending shifts from software experiments to heavy-duty hardware. AMD competes directly in high-end processors and AI-focused GPUs, serving hyperscale customers like Microsoft and expanding a compute-for-equity partnership with Meta Platforms. It also secured a multiyear partnership with OpenAI to deploy its Instinct MI450 series AI accelerators. Marvell, by contrast, specializes in data infrastructure—connectivity and storage solutions for modern data centers—and has expanded through the acquisition of Celestial AI and an agreement to acquire Lumentum Holdings.

Both companies carry distinct risks. AMD faces intense competition from Intel and Nvidia, relies on a limited number of manufacturing partners, and has incurred inventory charges from government export restrictions on advanced AI chips. Marvell contends with revenue concentration among a small group of distributors and direct customers, depends on third-party foundries in the Pacific Rim, and faces pressure from cloud providers developing their own proprietary chips.

The analyst's preference for Marvell rests on valuation: its forward P/E of 40.1x and P/S ratio of 15.8x are below AMD's 68.5x and 20.2x, respectively. AMD's shares have become pricey after a streak of AI successes, including its Meta partnership announced Oct. 27, a $2.5 billion investment in Anthropic stock, and $13.4 billion in fiscal Q3 sales, up 45% year over year. Marvell's investor day on Oct. 6 raised FY2028 revenue guidance to $20 billion from $18 billion and set a FY2031 target of $70 billion to $90 billion. The pending Lumentum acquisition, with Lumentum's fiscal Q1 sales of $1.3 billion up 137% year over year, may further support Marvell's growth outlook, though the deal has not yet closed.