Marvell Technology vs. Planet Labs: Which Growth Stock Is a Better Buy in 2026, the Artificial Intelligence Company or the Rising Star of the Space-Based Economy?

Investors looking for high growth in 2026 are weighing Marvell Technology (NASDAQ:MRVL) against Planet Labs PBC (NYSE:PL). Both companies offer unique ways to play the evolving landscape of advanced computing and data.

Marvell provides the essential components that power data centers and network infrastructure. Planet Labs operates a constellation of satellites to deliver daily imagery of the Earth for governments and businesses. While they operate in different sectors, both are currently leveraging artificial intelligence to scale their data-focused services for a global customer base.

The case for Marvell Technology

Marvell designs specialized semiconductor products that handle the massive flow of data within AI infrastructure and cloud networks. It recently expanded its portfolio by acquiring Celestial AI and XConn Technologies to improve how chips communicate in large data centers. This focus on specialized hardware makes it a standout among tech stocks. Two major customers, a distributor and a direct customer, individually exceed 10% of total sales. Customer concentration like this adds a layer of risk to the business.

In its 2026 fiscal year (FY), revenue reached $8.2 billion, which was a significant increase of 42.1% over the prior year. This growth helped the company achieve net income of $2.7 billion. This represented a shift to profitability compared to the previous two years and resulted in a net margin of 32.6%, signifying the percentage of revenue remaining as profit after all expenses.

As of its January 2026 balance sheet, the debt-to-equity ratio is 0.3x. This ratio measures total debt against shareholder equity, where a lower number usually suggests a more conservative financial structure. The current ratio, which compares short-term assets to liabilities, is 2.0x. Free cash flow, which is cash from operations minus capital spending, was $1.4 billion. Note that stock-based compensation (SBC) represented 33.8% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for Planet Labs PBC

Planet Labs operates roughly 200 satellites that capture daily images of the entire Earth landmass. This geospatial data is sold via subscriptions to government agencies and commercial clients in industries such as agriculture and insurance. The company is increasingly focused on long-term contracts for satellite services and recently opened a UK office to expand its work in data partnerships.

In FY 2026, revenue reached $307.7 million, representing growth of about 26%. Despite this growth, the company reported a net loss of $246.9 million. This resulted in a net margin of negative 80%, reflecting the high costs of maintaining and launching its satellite fleet.

Based on the January 2026 balance sheet, the debt-to-equity ratio is 2.5x. This means total liabilities exceed shareholder equity by a factor of two and a half. The current ratio is 1.7x, while free cash flow reached $57.6 million. Note that stock-based compensation represented 40.9% of operating cash flow.

Risk profile comparison

Marvell faces high sensitivity to demand shifts because it relies on a small group of customers for the majority of its sales. The company is also vulnerable to geopolitical tensions because it relies on third-party foundries in Taiwan and assembly plants in China. Rapid advances in AI design tools might also allow companies such as Amazon to design more of their own chips internally.

Planet Labs has a history of net losses and must continue spending heavily on satellite manufacturing without a guarantee of reaching profitability. Its operations are at constant risk from launch failures, space debris, or solar interference that could disable its constellation. Additionally, a large portion of its revenue depends on government budgets, which can be volatile or subject to cancellation by major prime contractors.

Valuation comparison

Marvell appears more attractively valued based on its lower Forward P/E and P/S ratio, which measure price relative to future earnings estimates and sales respectively.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Deciding to invest in Marvell Technology or Planet Labs depends on whether you want exposure to the hot field of AI or the emerging space-based economy. Both are seeing rapid revenue growth, indicating they are successfully capturing customer demand in their respective sectors.

In Planet Labs’ fiscal first quarter, ended April 30, the company’s sales growth accelerated to 42% year over year as it achieved record quarterly revenue of $94 million. This trend appears likely to continue because its fiscal Q1 backlog expanded 72% year over year to over $900 million. These results make it a compelling stock to own.

However, Planet Labs’ Q1 operating loss of $34.9 million is up from the prior year’s loss of $22.8 million. Also, its share price valuation is high, suggesting Marvell is the better value.

Moreover, Marvell is a provider of custom AI components to support what it calls “one of the largest infrastructure buildouts in history.“ This tailwind, combined with its outstanding balance sheet and the fact it is a profitable company, make Marvell the better stock to buy in 2026.

Robert Izquierdo has positions in Amazon, Marvell Technology, and Planet Labs PBC. The Motley Fool has positions in and recommends Amazon, Marvell Technology, and Planet Labs PBC. The Motley Fool has a disclosure policy.