Flash | 22 Dec 2025 06:22:55 ET │ 13 pages Marvell Technology Inc (MRVL.O) Adding a Positive Catalyst Watch into CES CITI'S TAKE We hosted Marvell's SVP of Finance Steve Vermillion and SVP of Investor Relations Ashish Saran for investor meetings in Asia last week. Meetings reinforced positive conviction in our core thesis of accelerating Y/Y sales growth in 2026/27 driven by AI data centers. Fundamentally, we believe investor concerns around XPU competition at two hyperscale customers and optical/DSP opport ...

Group 1 - Broadcom Inc. is recognized as one of the most promising AI stocks to buy, with a "Buy" rating reiterated by Goldman Sachs and a price target increase to $380.00 [1][2] - The strategic partnership with OpenAI involves deploying 10GW of custom-designed AI accelerators and networking products, enhancing Broadcom's leadership in custom silicon technology [1][2] - The partnership is expected to begin deployments in the second half of 2026 and complete by the end of 2029, providing significant revenue opportunities and reaffirming Broadcom's strong technology position [2] Group 2 - Polen Capital initiated positions in both NVIDIA and Broadcom in Q3 2025 after a two-and-a-half-year absence, citing concerns over the cyclical nature of their business models [3] - The investment management company expressed that the highly cyclical business models of both companies make it challenging to forecast future earnings growth with confidence [3] - The concern regarding potential downcycles within typical holding periods was highlighted, emphasizing the difficulty of maintaining a concentrated portfolio [3]

Core Insights - OpenAI and Broadcom have announced a multi-year partnership to develop 10 gigawatts of custom AI accelerators and network systems for next-generation AI clusters [1][2][3] - The collaboration aims to meet the increasing global demand for AI infrastructure, with deployments planned across OpenAI's facilities and partner data centers [1][3][6] Company Collaboration - OpenAI will design the AI accelerators and systems, leveraging its experience from developing frontier models to enhance hardware capabilities [1][3] - Broadcom will provide networking solutions, including Ethernet, PCIe, and optical connectivity, to optimize performance and cost for AI infrastructure [3][5] Strategic Importance - The partnership is seen as a critical step towards unlocking AI's potential and advancing towards artificial general intelligence [3][4] - Both companies emphasize the importance of custom accelerators and scalable networking solutions in building efficient AI data centers [3][6] Market Position - OpenAI has achieved significant user engagement, with over 800 million weekly active users, indicating strong adoption across various sectors [4] - Broadcom's extensive product portfolio serves critical markets, reinforcing its leadership in AI infrastructure solutions [5]