Key insights
- Marvell Technology (MXL) is emerging as a key player in 800 DSP chip production for hyperscalers, challenging established giants like Broadcom and Marvell. While its stock has seen significant gains, the market may not have fully priced in its potential for future 1.6 DSP chip production. Competition is intense, but MXL's optionality makes it an intriguing prospect, suggesting potential upside if it captures market share in the next generation of DSP technology.
When people talk about a monopoly in regards to the dsp chip production that enables the movement of data between gpus on server racks,
There’s basically 2 big players: Broadcom and Marvell while the rest are left for breadcrumbs: Credo, MxL, Semtech
Now even though competition is fierce for the dsp race, hyperscalers don’t want 2 big players to have all the pricing power, so they bring on an additional 1-2 players for optionality.
MXL came back from the dead stuck in wireless telecom that no one cares about, to becoming a dsp player for hyperscalers specifically for the 800 dsp chip production.
Now bears will argue they already ran up 500%. Well yes they did but that doesn’t fully price in the future 1.6 dsp production which MXL has not captured yet.
Broadcom, Marvell and credo are all fighting for 1.6 dsp slots for hyperscalers so competition is fierce but if you price in optionality, mxl becomes an intriguing target to keep an eye on.