Nvidia (NVDA, Financial) isn't slowing down. Barclays analyst Thomas O'Malley just reaffirmed his Buy rating and hiked his price target to $175, signaling confidence in the AI giant's momentum. With $35.08 billion in quarterly revenue—nearly doubling last year's $18.12 billion—Nvidia is printing money. But not everyone's bullish. Insider sentiment has turned cautious, with key executives cashing out big. Case in point: Director Tench Coxe offloaded 1 million shares, raking in $131 million. Meanwhile, Barclays warns that while Nvidia's GPU dominance remains intact, customers are actively seeking cheaper alternatives—a trend that could shake up the semiconductor hierarchy.
Enter Marvell (MRVL, Financial) and Broadcom (AVGO, Financial)—two AI semiconductor contenders gaining serious traction. Barclays raised Marvell's price target to $150, betting big on its proprietary serializer/deserializer tech and a projected $4 billion ASIC market by 2026. Broadcom got a boost, too—its target jumped to $260, as analysts expect $21 billion to flow into its custom chip division by FY26. Lumentum Holdings (LITE, Financial) is another dark horse, scoring a double upgrade to Overweight thanks to explosive hyperscaler adoption beyond Google (GOOG, Financial). Barclays is drawing battle lines: the AI chip market is splitting into “haves” and “have-nots”, and traditional semis, analog, and PC chips are getting left in the dust.
The big picture? AI semiconductors are heading into a $1 trillion total addressable market by the end of the decade, and Nvidia won't have the whole pie to itself. While NVDA is still king, demand for lower-cost, high-efficiency AI chips is surging. Marvell, Broadcom, and Lumentum are moving in fast, and the semiconductor shake-up is just beginning. Investors looking for AI exposure might want to pay attention—because this market is about to get a whole lot more competitive.
