Intel vs. Marvell Technology: Which AI Chip Stock Is a Better Buy in 2026?

Intel (NASDAQ:INTC) and Marvell Technology (NASDAQ:MRVL) both sell chips for data centers, and both companies say demand tied to artificial intelligence (AI) is lifting that business. Beyond that, they have little in common.

Intel designs and manufactures processors for PCs and servers, and it is trying to turn its factories into a foundry business that makes chips for other companies. Marvell is a smaller company that outsources manufacturing and sells chips for data center and networking equipment. For anyone investing in AI stocks, the choice comes down to a capital-heavy turnaround or a faster-growing specialist that leans on a short list of customers.

The case for Intel

Intel designs and manufactures x86 processors for PCs and data centers. It is also trying to expand Intel Foundry into a manufacturer for outside chip designers, though the company's 2025 annual report says nearly all of that business still supports Intel's own products. In August 2025, the U.S. government agreed to invest $8.9 billion in Intel common stock, funded by CHIPS Act grants that had been awarded but not yet paid and by its Secure Enclave program award.

In the fiscal year ended Dec. 27, 2025, revenue was nearly $52.9 billion, down roughly 0.5% from the prior year. Intel's net loss attributable to shareholders was about $267 million, compared with a loss of about $18.8 billion in fiscal 2024.

Operating expenses fell to roughly $20.6 billion from $29.0 billion as restructuring charges shrank and research and development spending fell, yet Intel still posted an operating loss of about $2.2 billion for the year. Below the operating line, the 2025 result included a gain of about $5.6 billion from the sale of a 51% stake in Altera.

As of its Dec. 27, 2025, balance sheet, the debt-to-equity ratio was roughly 0.4x, measured as total debt against total stockholders' equity. The current ratio, which compares short-term assets to short-term liabilities, was close to 2.0x.

Free cash flow was about negative $4.9 billion, measured as operating cash flow of $9.7 billion minus $14.6 billion of additions to property, plant, and equipment. Intel's own adjusted free cash flow measure, which counts government incentives and partner contributions against capital spending, was negative $1.6 billion.

Stock-based compensation accounted for roughly 25.1% of operating cash flow, and because it is a non-cash expense added back to the cash flow statement, it lifts reported cash generation.

The case for Marvell Technology

Marvell Technology designs chips for data infrastructure and networking, a segment of the semiconductor market closely tied to data center spending. Its products include custom chips and interconnects for cloud and AI systems, and it outsources manufacturing. On March 31, 2026, Marvell and Nvidia (NASDAQ:NVDA) announced a strategic partnership, and Nvidia invested $2 billion in Marvell convertible preferred stock. Marvell also sold its automotive Ethernet business to Infineon Technologies (OTC:IFNNF) for $2.5 billion in cash in August 2025.

In fiscal 2026, which ended Jan. 31, 2026, revenue reached nearly $8.2 billion, up about 42.1% year over year. Data center products accounted for 74% of that total. Net income was close to $2.7 billion, a net margin of roughly 32.6%, but that figure includes a pre-tax gain of about $1.8 billion on the sale to Infineon.

Operating income, which excludes the gain, was about $1.3 billion, or roughly 16% of revenue. Marvell reported net losses in each of the prior two fiscal years.

On its Jan. 31, 2026, balance sheet, the debt-to-equity ratio was roughly 0.3x on a total debt basis. The current ratio was close to 2.0x, meaning current assets were about twice current liabilities.

Free cash flow was about $1.4 billion, measured the same way as Intel's, which is operating cash flow minus purchases of property and equipment. Stock-based compensation equaled roughly 33.8% of operating cash flow, a larger share than at Intel.

Risk profile comparison

Intel cites intense competition, rapid technological change, and an evolving market for AI products as risks. It also faces litigation over the government investment.

A stockholder filed a derivative lawsuit in March 2026, asking a court to invalidate the agreement and seeking damages on Intel's behalf, according to Intel's quarterly report for the period ended June 27, 2026, and the defendants moved to dismiss in May 2026.

Intel makes its products predominantly in its own factories but also uses outside foundries, including Taiwan Semiconductor Manufacturing (NYSE:TSM), for some products or parts of them. China accounted for about 24% of 2025 revenue, which leaves sales exposed to trade tensions and export controls.

Marvell depends on a short list of buyers. Its 10 largest customers, including distributors, accounted for 82% of fiscal 2026 net revenue.

In August 2026, it issued Google, a unit of Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), a warrant to purchase up to about 59 million Marvell shares at $206.58 each, with vesting tied mostly to revenue milestones for custom chips, which could dilute existing shareholders.

Marvell completed the acquisitions of Celestial AI and XConn Technologies in February 2026 and lists integration as one of its risks, along with tariffs and trade restrictions involving China.

Valuation comparison

Both stocks trade at steep forward price-to-earnings (P/E) ratios based on earnings estimates, and Marvell is the more expensive of the two on price-to-sales (P/S), a measure that uses sales over the past 12 months.

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

Which stock would I buy in 2026?

Marvell Technology looks like the better buy to me, though both stocks more than tripled in 2026 through September, so either one is best held as a small part of a diversified portfolio for five years or more.

Intel's turnaround is showing up in its results. In the quarter that ended in June, revenue rose 25% from a year earlier, and the company swung to an operating profit. Its large net loss that quarter resulted from a non-cash charge related to shares held in escrow for the government.

The foundry segment is still losing money, however, and funding it has meant issuing a lot of new stock. Intel sold about $23 billion of new shares in August 2026, roughly a year after the U.S. government took its stake.

Marvell avoids that burden by leaving manufacturing to others. Its latest quarter, which ended Aug. 1, set a revenue record, with data center products accounting for nearly 80% of sales.

Management said it expects revenue growth to accelerate through the rest of fiscal 2027, which ends in January 2027. Concentration is the trade-off, and the warrant issued to Alphabet's Google shows that large customers can command a share of the upside.

With both stocks trading at rich earnings multiples, I'd rather own the faster grower that doesn't have to build its own factories. Intel deserves credit for its progress, and if outside customers fill its foundry, patient shareholders could still be rewarded.

Mike Schwenk has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Intel, Marvell Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.