Broadcom Beats Expectations, Outpaces Marvell in Goldman Sachs' Chip Stock Update
Goldman Sachs analyst James Schneider has updated his views on two semiconductor companies, Broadcom (AVGO) and Marvell Technology (MRVL), after their latest earnings results. Schneider maintained a Buy rating on AVGO with a raised price target from $525 to $540, implying 47% upside potential.
He expects Broadcom's current outlook to be constrained mainly by data-center land, power availability, and facility construction, but notes that management has secured key supply chain components for FY27 and FY28. This suggests revenue could exceed expectations as infrastructure bottlenecks ease.
Schneider also sees stable operating margins for Broadcom despite near-term gross margin pressure, driven by fixed-cost leverage from rapid revenue growth.
Meanwhile, Schneider reiterated his Hold rating on MRVL with a price target lift from $195 to $220, implying 6.6% upside potential. He views Marvell's raised guidance as an improvement in medium-term visibility but notes that the stock remains range-bound due to elevated expectations and a premium valuation.