Analysts favor Broadcom, Marvell as Google cloud spending grows
Melius Research analyst Ben Reitzes expects a strong third quarter for Google Cloud, driving Alphabet to keep expanding AI infrastructure investment, and named Broadcom, Marvell and networking vendor Arista Networks as beneficiaries while keeping a "hold" rating on Alphabet. He set price targets of $610 for Broadcom (implying roughly 70% upside), $445 for Marvell and $275 for Arista, arguing Broadcom and Marvell gain from co-designing custom chips with Google and that Arista benefits as AI data-center networking demand grows. Melius estimates Google's AI infrastructure spending will reach $352 billion in 2027, up 75% from its 2026 estimate, and J.P. Morgan analyst Harlan Sur also listed Broadcom and Marvell among his top semiconductor picks. On the prior day (Oct. 12), Broadcom, Marvell and Arista all fell, with the iShares semiconductor ETF down about 2.5%.
It shows investors shifting the AI spending trade from the big cloud buyers toward their chip and networking suppliers.