AMD, Marvell Outshine Rivals as High-Beta AI Stocks
Advanced Micro Devices (NASDAQ:AMD) and Marvell Technology (NASDAQ:MRVL) have outperformed NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) so far this year, with AMD's stock up 142% and Marvell's up 157%. Their latest earnings reports have solidified their positions as high-beta alternatives in the AI infrastructure sector.
AMD's data center revenue more than doubled to $6.72 billion in Q2, while Marvell pulled 76% of its $2.4 billion quarterly revenue from AI infrastructure. The companies' strategies diverge: AMD aims to be a merchant alternative to NVIDIA, while Marvell is embedding itself in customer designs through custom silicon and optical interconnect.
The next test for these stocks will be guidance follow-through, particularly for AMD's Q3 guide of $13 billion, about 41% year-over-year growth. For Marvell, the key number is its $2.7 billion Q2 guide, roughly 35% year-over-year growth, plus whether design wins convert into revenue before hyperscalers vertically integrate.