Core Viewpoint - Micron Technology and Marvell Technology are both positioned to benefit from the AI infrastructure boom, but they operate in different segments of the semiconductor market, with Micron focusing on memory technologies and Marvell on custom silicon and data center connectivity [1][2]. Group 1: Micron Technology - Micron is experiencing strong demand for high-bandwidth memory (HBM) and DRAM products due to the surge in AI workloads, with its HBM3E products noted for their power efficiency and bandwidth [3]. - In January 2025, NVIDIA announced Micron as a key supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing Micron's role in the HBM market [4]. - Micron's second quarter of fiscal 2025 saw a decline in non-GAAP gross margin to 37.9%, down from 39.5% in the previous quarter, attributed to weaker NAND flash pricing and startup costs at a new DRAM facility [5]. - For the third quarter, Micron guided a gross margin of 36.5%, indicating ongoing margin pressures despite record sales in its HBM segment [6]. - The Zacks Consensus Estimate for Micron's 2025 sales and EPS suggests year-over-year growth of 41.9% and 426.9%, respectively, but EPS estimates have been volatile over the past 60 days [16]. Group 2: Marvell Technology - Marvell is capitalizing on the increasing demand for custom silicon from hyperscalers, exceeding its fiscal 2025 AI revenue target of $1.5 billion and expecting to surpass $2.5 billion in fiscal 2026 [7]. - The company reported a 27% year-over-year increase in total revenues and a 30% rise in non-GAAP EPS for the fourth quarter of fiscal 2025 [8]. - Marvell's non-GAAP gross margin has remained above 60% for several years, with a forecast of 60% for the first quarter of fiscal 2026, indicating strong operational efficiency [11]. - The Zacks Consensus Estimate for Marvell's 2026 sales and EPS implies a year-over-year increase of 43.8% and 75.8%, respectively, with consistent upward revisions over the past 60 days [20]. Group 3: Stock Performance and Valuation - Over the past year, Micron shares have decreased by 47.4%, compared to a 31.3% decline in Marvell shares [13]. - Micron is trading at a forward earnings multiple of 1.71X, significantly below its three-year median of 3.22X, while Marvell's forward sales multiple is at 4.99X, lower than its median of 8.20X [14]. - Marvell's premium valuation reflects high growth expectations and robust profitability, while Micron's declining profitability raises concerns about its ability to leverage the AI market [15].