Meta and Google Report Is a Positive for These Other Holdings
Let's connect the dots between the latest AI sector news and our positions.
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The Information reports that Meta (META) is in talks to spend “billions” on Google’s (GOOGL) AI chips for its data centers starting in 2027. Connecting the dots between that report will likely prop up shares of Broadcom (AVGO) , but it should do the same for shares of Marvell (MRVL) .
Why?
While Broadcom has been linked to Google’s Tensor Processing Units (TPUs), Marvell supplies general-purpose processors (CPUs) for use in Google's data centers to run various services. Marvell also currently makes custom AI chips for the likes of Google, Amazon (AMZN) , and Microsoft (MSFT) , including Amazon’s Trainium AI chips, and is reportedly working with Google as a potential secondary supplier for TPUs. That jives with the increased total addressable market figures and more than 50 new pipeline opportunities Marvell management highlighted earlier this year and reiterated during its August earnings call.
Separately, yesterday Amazon said it will invest as much as $50 billion in AI infrastructure to support U.S. government agencies, with ground being broken next year. As part of the investment, it’s reported that those agencies will have access to Amazon Web Services’ AI tools, Anthropic’s Claude family of models, Nvidia (NVDA) chips, as well as Amazon’s custom Trainium AI chips.
This is good for both our NVDA and MRVL shares.
At the time of publication, TheStreet Pro Portfolio was long GOOGL, META, AVGO, MRVL, NVDA and AMZN.
