Broadcom and Marvell Technology could see more significant gains than Nvidia in the new year, according to Jefferies. “We continue to like NVDA on the precipice of the Blackwell ramp but see more upside in AVGO and MRVL as they ride the wave of rising demand for custom silicon,” wrote analyst Blayne Curtis. Curtis expects that opportunities remain in artificial intelligence even as the trade enters the “later innings.” He views sectors beyond AI as “still early days.” The firm sees the most upside in store for Broadcom. Curtis named it a top pick due to its strong and growing customer base. He also expects AI-related stocks to continue outperforming analog and semiconductor capital equipment, or semi-cap, names. “Analog setup remains challenging with recent commentary suggesting limited recovery in either Auto or Industrial, pushing the recovery trade into mid-year,” he wrote. “Semi-Cap names need a reset to estimates but the stocks pulled back in 2H24 … and we think investors likely warm up to these names before analog.” Beyond Broadcom, the firm also named Marvell Technology as a stock with the potential for more significant upside to Nvidia with the rollout of Amazon ‘s Trainium2 chips. MRVL YTD mountain Shares so far this year Even after another strong calendar year from Nvidia, Jefferies remains bullish on the AI chip darling, noting that new product releases have historically been the “right time” to hold the stock. The company’s Blackwell chip is set to launch this year. “Concerns about rumored Blackwell delays/April air pocket are overdone, and we still see NVDA capturing the lion’s share of the exploding AI spend,” he wrote.
