Wall Street's AI trade may be expanding beyond graphics processors, with investor Gary Black arguing that custom chipmakers Broadcom, Inc. (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL) are emerging as some of the biggest beneficiaries of rising demand for specialized AI infrastructure.



<h2>Gary Black Says Wall Street Is Rewarding Custom AI Chip Leaders</h2>



On Tuesday, Black said Broadcom and Marvell &#34;seem to be the big winners in Wall Street's new appreciation for custom AI chips,&#34; pointing to growing investor enthusiasm around application-specific integrated circuits, or ASICs, used to power large-scale AI workloads.



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<blockquote>$MRVL and $AVGO seem to be the big winners in Wall Street's new appreciation for custom AI chips. Shares of $AVGO (Broadcom) rose +4.7% on Tuesday, and were up another +2.1% after hours in front of tomorrow's 1Q earnings report. $AVGO may be capitalizing on the enthusiasm for…— Gary Black (@garyblack00) June 2, 2026</blockquote>
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The comments came as Marvell shares surged after Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang called it &#34;the next trillion-dollar company&#34; during a joint appearance with Marvell CEO Matt Murphy at Computex in Taiwan.



Broadcom shares climbed 4.7% Tuesday and added 2.79% in after-hours trading ahead of earnings, while Marvell rallied 32.52% during the regular hours and increased 9.64% in after-hours trading, according to Benzinga Pro.



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<h2>Why AI Infrastructure Is Moving Beyond GPUs</h2>



Huang used the appearance to note that AI bottlenecks are increasingly shifting from compute power to connectivity.



&#34;When you take a computing challenge, and you break it down into numerous components, distributing it throughout the entire data center, connectivity becomes crucial,&#34; Huang said. &#34;This is why Matt is performing so well, and why Marvell is so vital.&#34;



Marvell's business is heavily exposed to data centers, which account for roughly 76% of revenue, with investors increasingly focused on its optical networking, silicon photonics and custom chip operations.



Meanwhile, Broadcom remains the dominant player in ASICs, with Black citing an estimated 70% market share and major customers including Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT) and OpenAI.



Analysts project that on Wednesday, Broadcom will post second-quarter revenue of $22.1 billion, up from $15 billion reported in the same quarter a year earlier.



Meanwhile, Marvell reported quarterly earnings of 80 cents per share, surpassing analysts' estimates of 79 cents, while revenue rose to $2.42 billion from $1.9 billion a year earlier, exceeding consensus expectations of $2.4 billion.



Benzinga Edge Stock Rankings place AVGO in the 96th percentile for Quality, highlighting strong performance across short, medium and long-term periods.



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Photo: PJ McDonnell / Shutterstock

US optical comms ripped on a triple catalyst stack: NVDA Q1 revenue +85% YoY, AI clouds like Nebius raised GPU rental rates, and NVDA's USD 1B stake in Nokia plus AI-RAN partnership pulled telecom into the AI infra story. AAOI +17.21% in one session, MRVL at all-time high, COHR and LITE following, NOK +140% YTD. SG investors can tap this through SGX names like Venture (V03), Frencken (E28), AEM (AWX). Real AI extension or crowded trade?

US optical comms ripped on a triple catalyst stack: NVDA Q1 revenue +85% YoY, AI clouds like Nebius raised GPU rental rates, and NVDA's USD 1B stake in Nokia plus AI-RAN partnership pulled telecom into the AI infra story. AAOI +17.21% in one session, MRVL at all-time high, COHR and LITE following, NOK +140% YTD. SG investors can tap this through SGX names like Venture (V03), Frencken (E28), AEM (AWX). Real AI extension or crowded trade?

Optical Comms Erupt: Real AI Play Or Crowded Trade?

MRVL

NVDA

Investor Gary Black identifies Broadcom and Marvell as key beneficiaries of Wall Street's shifting focus from GPUs to custom AI chips. Broadcom rose nearly 7% ahead of earnings, while Marvell surged over 32% after Nvidia CEO Jensen Huang praised the company's role in data center connectivity. Both firms reported strong financial results, with Broadcom dominating the ASIC market and Marvell exceeding revenue expectations, highlighting their critical roles in specialized AI infrastructure.

- Wall Street is increasingly favoring custom AI chipmakers Broadcom and Marvell Technology due to rising demand for specialized AI infrastructure.  
- Investor Gary Black noted Broadcom's market dominance in application-specific integrated circuits (ASICs) and highlighted Marvell's significant gains in the data center sector.  
- Shares of both companies surged recently, with Broadcom's expected second-quarter revenue highlighting its growth in the AI market.

benzinga_article

Marvell Tech

Gary Black Says Broadcom, Marvell Are 'Big Winners' As Focus Shifts To Custom AI Chips As Nvidia CEO Jensen Huang Touts 'Next Trillion-Dollar Company'