2 underappreciated AI chip stocks that can compete with Nvidia

Yahoo Finance Video

December 4, 2025

In this video:

•                                       StockStory Top Pick 
  

  NVDA

  +1.41%

  AVGO

  +2.10%

 MRVL  

 +3.23%  

As dealmaking within the AI landscape accelerates, Bloomberg Intelligence Senior Semiconductor Analyst Kunjan Sobhani discusses why he sees these two artificial intelligence chip manufacturers as two underappreciated stocks that could win big: Marvell Technology (MRVL) and Broadcom (AVGO).

Also catch Kunjan Sobhani weigh in on how late 2026 will be a key inflection point for certain hyperscalers and when he believes circular investing headwinds could start to materialize.

To watch more expert insights and analysis on the latest market action, check out more Market Domination.

Video Transcript

00:00 Speaker A

Everyone talks about Nvidia, Open AI has clearly been part of the investor vernacular recently, but you’ve been highlighting Marvel, Broadcom as some underappreciated winners. So what are investors missing?

00:15 Speaker B

Yeah, like I mentioned, second half will be a key inflection point in terms of unit volumes. We have seen the the couple of deals, right? Namely the Google Anthropic and the AWS Anthropic deals and now some more uh outlook for more such deals are coming in. So when these large hyper scalar who they have their own AI 6 are now trying to supply that to the external market sort of competing with Nvidia. The two companies that gain the most or the Broadcom and Marvell where, you know, the valuations and the fundamental are not fully priced in yet. So we see some opportunities in these two names going forward.

01:05 Speaker A

And and what do you think has been priced in so far? You’ve been talking a lot about the 2026 inflection point. Considering where valuations are today, especially among some of those mega cap names, how much is priced in versus what should investors expect to continue to drive some of that growth?

01:29 Speaker B

Yeah, so when we look at multiples for the overall AI names, especially large names, they don’t seem to be at a exorbitantly high levels, but we do think they have priced in the strong growth in 2026 and at least some portion of first half 27 that I mentioned. So, um at this point, it will come down to execution on the sub and the concerns are not more towards the spending side, but more on the supply side. Can these new programs like the AMD server rack ramp and the ASIC programs, can they execute? Uh will they run into some hiccups? And can the end infrastructure which is the data center infrastructure keep coming up at the same pace? Because remember, there’s more bottlenecks now when it comes to spending when it comes to power that these data centers need.

02:24 Speaker A

And just to keep the theme of the bubble conversation, I was reading a note from Bank of America and they call this more of an air pocket supported by earnings and fundamentals. How would you describe where we’re currently at in the AI cycle?

02:41 Speaker B

I I think I would agree with that. given the what’s happening in the macro, the interest rate volatility and especially this time of the year and the performance we have seen. I think it doesn’t seem like uh it does seem like an air pocket or sort of uh a hiccup on the way. Uh again, if the execution on the 26 numbers and first half 26 continue as projected, we don’t see significant risk to valuation at this point. However, there is has been this expectation set up of every quarter to be a beat and race. So even a small timing hip hiccup which could occur in one of these large ramps, uh could drive a bit of a volatility in terms of valuation.

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