It’s been a big week for chip stocks. Nvidia (NASDAQ:NVDA), the undisputed AI chip king, delivered its latest quarterly results and impressed Wall Street with a stronger-than-expected performance. That print was followed by high-flying Marvell’s (NASDAQ:MRVL) readout, which was also solid, but had the opposite effect. With expectations already high and the stock having enjoyed a huge run-up, Marvell failed to deliver enough of a surprise for investors, sending shares lower in Friday’s session.

With the two stocks now taking very different paths, investors may be wondering which offers the better opportunity from here. Investor Kenio Fontes has weighed in on both chipmakers, looking at their latest results, growth prospects, profitability and valuations to assess how attractive each stock remains.

Fontes believes Nvidia’s latest results reinforce the case for the company as a major beneficiary of the AI boom. Nvidia generated $96.2 billion in Q2 revenue, up 106% year over year and 18% sequentially, beating expectations of around $92 billion. Its Q3 forecast of approximately $108 billion also came in ahead of the $104.6 billion consensus estimate.

Profitability remains another major strength, with operating margin reaching 66%, up from 61% a year earlier. That suggests Nvidia is still finding ways to improve efficiency and benefit from operating leverage despite its enormous scale.

For Fontes, the key takeaway is that AI demand remains broad and robust. Nvidia is benefiting from customers ranging from AI startups and hyperscalers to enterprises, sovereign customers and AI-focused cloud providers. The ramp-up of Blackwell Ultra is already driving substantial growth, while Vera Rubin could provide another major boost as it begins to show up in the company’s financial results.

Fontes also points to Nvidia’s expanding ecosystem, which extends beyond GPUs into software, robotics and autonomous vehicles.

Meanwhile, despite its leading status, valuation also looks reasonable given the company’s growth. Nvidia trades at roughly 23 times earnings despite triple-digit revenue growth, which seems “very undervalued” to Fontes.

Fontes does acknowledge risks, particularly whether Nvidia can maintain its pricing power as the business becomes much larger and whether demand can remain strong without depending so heavily on hyperscalers’ capital spending. Nevertheless, he sees considerable potential for the company to keep growing and expanding its ecosystem. “In short,” Fontes summed up, “I believe Nvidia is an excellent company and that it’s trading with a good margin of safety. The company still seems to me to be one of the better bets for the AI trend.”

Accordingly, Fontes rates NVDA stock a Buy. (To watch Fontes’s track record, click here)

However, Fontes takes a more cautious view of Marvell. He sees plenty of strength in the latest results, with Q2 revenue rising 37% YoY and data-center revenue climbing 46%. Marvell expects approximately $3.15 billion in Q3 revenue, ahead of consensus, while full-year revenue growth is expected to reach 45%. Management also expects data-center revenue to grow more than 60% in fiscal 2028, highlighting the strength of AI and custom ASIC demand.

The concern is valuation. Marvell trades at roughly 60 times earnings, vs. around 30 times for Broadcom and 23 times for Nvidia. Its GAAP valuation is even higher, while substantial stock-based compensation continues to dilute shareholders.

Fontes sees significant room for Marvell to improve margins and benefit from operating leverage, but he also notes that Nvidia and Broadcom are larger, more profitable businesses. “In my view, it’s hard to be bullish on the case when 1. valuation is not compelling (mainly looking at GAAP multiples), and 2. when there are companies that are bigger, growing faster, and are also cheaper than MRVL,” Fontes summed up.

While Fontes considered a Sell rating, he ultimately rates the stock a Hold (i.e., Neutral), reflecting the company’s strong growth prospects but also the premium investors are already paying.

As for the Street’s view, it sees both stocks as Strong Buys. NVDA’s $323.37 average price target points toward one-year gains of 44%. Meanwhile, MRVL stock is expected to appreciate by 35%, considering the average target clocks in at $299.17. (See NVDA stock forecast or MRVL stock forecast)