BofA sees no near-term impact on Broadcom, Marvell from Nvidia expansion

BofA notes media reports suggesting Nvidia (NVDA) might expand from its current dominance in merchant GPU AI accelerators into making more customized chips, also known as ASIC, for the telecom, auto, gaming and even data-center markets. While this could be a long-term competitive risk for current ASIC leaders Broadcom (AVGO), Marvell (MRVL) and their Taiwanese peers, the firm doesn’t see any near-term industry implications, the analyst tells investors. While the media reports don’t mention Intel (INTC), the firm “won’t be surprised” to see its IFS foundry operations “in the mix as a potential alternative to foundry leader” TSMC (TSM), the analyst added.