So you didn’t buy NVIDIA at $72 back in 2022? Join the club. We’ve all got that one stock that got away – the one that makes us want to throw our phones when we see the charts.
Here’s the thing though: NVIDIA’s incredible 1,050% run might be slowing down. Sure, it could still hit $250, but that’s only about 32% upside from here. Not exactly the life-changing gains we’re all chasing, right?
But here’s where it gets interesting. While everyone’s been obsessing over NVIDIA’s $70,000 chips (yes, you read that right), two other companies have been quietly building the infrastructure that makes all this AI magic possible. And they’re trading at a fraction of what they should be worth.
The Networking Ninja: Marvell Technology (MRVL)
Think of Marvell as the unsung hero of the AI revolution. While NVIDIA gets all the glory for making the GPUs that power ChatGPT, Marvell makes the networking chips that actually get the data to those processors. It’s like having the fastest race car in the world but forgetting to build roads to the track.
Here’s what makes Marvell special: they’re basically Broadcom’s scrappy little brother, but trading at one-third the price. Microsoft sources 100% of their North American data center optical chips from Marvell. That’s not a typo – 100%.
The company’s also crushing it in custom chips (the same business that made Broadcom famous), with Amazon as a major customer. Management expects this business to grow 20% next year, and they just dropped $3.3 billion to acquire Celestial AI to double down on optical technology.
Conservative estimates put Marvell’s fair value at $147 – that’s 76% upside from current levels. More aggressive models suggest it could double.
The Monopoly in Plain Sight: Taiwan Semiconductor (TSM)
Here’s a fun fact: there’s literally only one company in the world that can consistently make the 4-nanometer chips that power NVIDIA’s latest $70,000 Blackwell superchips. That company is Taiwan Semiconductor, and somehow Wall Street is still treating it like just another manufacturer.
TSM’s closest competitor, Samsung, can barely achieve 60% yield on 4nm chips – meaning they have to throw away 40% of what they make. TSM? They’re hitting 90% yields on even more advanced 3nm technology. It’s not even close.
The numbers speak for themselves: TSM just crushed earnings expectations and raised their revenue growth forecast to mid-20% annually through 2029. AI revenues are expected to jump 50% per year. Yet the stock trades at just 24 times forward earnings.
My models suggest TSM could hit $705 – that’s 110% upside for what’s essentially a monopoly on the world’s most advanced chip manufacturing.
The Bottom Line
Missing NVIDIA stings, but the AI revolution is just getting started. While everyone’s chasing the obvious plays, Marvell and TSM are quietly building the foundation for the next decade of AI growth – and trading at prices that won’t last long.