Move Over Nvidia, This Custom Chip Stock Could Be the Next Big Winner

Nvidia (NASDAQ: NVDA) has been one of the biggest winners of the artificial intelligence (AI) chip boom in recent years. The semiconductor bellwether has dominated this space, driven by the strong demand for its graphics processing units (GPUs), which have played a central role in training large language models (LLMs).

The good news is that Nvidia still controls an impressive 80% of the AI chip market, according to third-party estimates. However, its control over this lucrative market is gradually slipping. The shift from AI training to inference and the emergence of competing chip technologies explain why Nvidia stock has risen just 8% this year despite sustaining impressive growth levels.

However, shares of Marvell Technology (NASDAQ: MRVL) have soared an incredible 144% in 2026, crushing Nvidia's returns. Let's look at the reasons behind Marvell's outperformance and check why this semiconductor stock could be the next big winner amid the AI revolution.

Image source: The Motley Fool.

Marvell Technology's rise shows that the AI gravy train may have moved on from Nvidia

Nvidia's GPUs have been ideal for training AI models. However, compute demand in AI data centers is now shifting from training to inference, the stage during which trained AI models are put to work in the real world by ingesting new data to answer questions. As a result, the inference phase doesn't require as much computing power as the training phase.

This has led to increased demand for custom AI processors that are designed to perform specific tasks. The specialized nature of these custom processors means they can perform their designated tasks faster than GPUs and with higher power efficiency. Marvell is one of the key players in custom AI processors, controlling 20% to 25% of this market.

The company designs custom AI chips for Amazon, Microsoft, and others. Marvell claims it designs chips for the top four U.S. hyperscalers and is also expanding its relationships with emerging hyperscalers. In all, Marvell notes that it can tap into more than 50 custom AI chip opportunities across over 10 customers in the long run, leading to potential lifetime revenue of $75 billion.

Given that Marvell has generated $8.7 billion in revenue over the trailing twelve months, the company's potential in AI chips suggests it could witness a remarkable acceleration in growth over the long run.

Nvidia itself believes that Marvell could jump significantly

Just last month, Nvidia CEO Jensen Huang touted Marvell as the next trillion-dollar company. It currently has a market cap of $195 billion.

Huang pointed out that Marvell's networking chips will play a critical role in AI data centers, enabling AI tasks to run seamlessly. Investors should note that the optical networking market is poised to go supersonic due to AI, presenting another big growth opportunity for Marvell. Not surprisingly, consensus estimates are projecting Marvell's earnings to increase at a solid clip over the next three years.

Data by YCharts

Marvell could sustain this momentum beyond the next three years and actually hit a $1 trillion valuation. Nvidia stock, on the other hand, may struggle to become a multibagger again if competition intensifies. So, it won't be surprising to see Marvell outpacing Nvidia's returns in the long run, as it has the potential to clock faster growth.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Marvell Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.