Nvidia Started the AI Boom. These 2 Stocks Could Power the Next Phase.

The market is still valuing AI infrastructure as if compute were the only bottleneck, but the next marginal dollar is shifting into orchestration: chip design, rack-level networking, and supply assurance contracts. That benefits AVGO and MRVL more than the pure-play GPU complex because they monetize the “picks-and-shovels of customization” rather than a single silicon SKU, which should make their revenue streams stickier and less cyclical than headline AI spend implies.

The second-order effect is that hyperscalers’ ASIC push is not just a cost-saving initiative; it is a bargaining strategy against Nvidia’s pricing power. If custom accelerators continue taking share, the real loser is not just NVDA unit growth, but the attach rate on premium interconnect, software optimization, and platform lock-in over the next 12-24 months. At the same time, the OEM and foundry ecosystem should see a deeper mix shift toward advanced packaging, custom networking, and long-duration capacity commitments, which tightens supply for slower-moving second-tier AI hardware vendors.

MRVL looks more interesting tactically because the market is pricing the ramp as optionality rather than durability. The asymmetry is that each incremental design win compounds into multi-year revenue visibility, while margins can expand sharply once the mix shifts from early-stage engineering programs to production silicon; that makes the next 2-4 quarters the key re-rating window. AVGO is the lower-volatility expression, but the recent drawdown creates a better entry point if investors want exposure to the AI capex stack with less execution dispersion.

Contrarianly, the consensus may be overestimating how quickly hyperscalers can fully displace merchant GPUs: custom silicon adoption usually expands total AI capex before it compresses it, because every new generation lowers unit cost and expands workload ambition. The better question is not whether ASICs win, but who captures the design, networking, and deployment margin along the way. On that basis, the trade is less bearish NVDA outright and more bullish the enablers of hybrid AI architectures.