Broadcom Inc. (AVGO) and Marvell Technology, Inc. (MRVL) are two prominent players in the semiconductor industry. AVGO designs, develops, and supplies a range of analog and digital semiconductor connectivity solutions and infrastructure software solutions. Its products are used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, and base stations. Bermuda-based MRVL is a semiconductor manufacturer that offers a security and networking platform, secure data processing, networking, and storage solutions. It designs, develops, and sells analog, mixed-signal, digital signal processing, embedded and standalone integrated circuits, and a portfolio of Ethernet solutions.
Despite growing supply chain disruptions worldwide, strong demand for semiconductor chips from various industries has allowed the industry to witness a 32.4% year-over-year sales growth in February 2022. Companies’ efforts to manufacture advanced chips upon the growing proliferation of 5G, AI, and ML, along with considerable corporate investments and government support to ramp up production, will likely ease the shortage in the near term, driving the industry’s growth. The global semiconductor market is expected to grow at a 6.6% CAGR to reach $808.50 billion by 2030. So, both AVGO and MRVL should benefit.
