Broadcom vs. Marvell: how they make money

• Chip buyers (semiconductor solutions) · 57.7% of revenueDistributors, device makers and their contract manufacturers, and companies building AI data centers. They paid $36.9 billion in FY2025.
• Software buyers (infrastructure software) · 42.3% of revenueLarge enterprises and government agencies. Broadcom says these include most of the Fortune 500. They paid $27.0 billion in FY2025.

• Data center customers · 74.4% of revenueBuyers of chips for AI systems, servers, ethernet switching, storage and links between data centers. Revenue was $6.10 billion in FY2026, up 46%.
• Communications and other customers · 25.6% of revenueBuyers of chips for enterprise and carrier networks, consumer devices such as gaming consoles and printers, and industrial and US government uses. Revenue was $2.09 billion in FY2026, up 31%.

FY2025

FY2026

Debt

$59.4B

Cash and investments

$24.0B

On Aug 2, 2026.

On Aug 2, 2026 Broadcom's debt exceeded its cash by $35.4 billion, about 0.9 years of its $40.7 billion cash from operations over the last four quarters.

Debt

$5.0B

Cash and investments

$3.9B

On Aug 1, 2026.

At Aug 1, 2026 Marvell's debt exceeded its cash by $1.03 billion, less than its $1.75 billion of FY2026 cash from operations.

• One class of shares.
• Officers and directors as a group: 1.9% of shares (as of Feb 24, 2026).
• Vanguard Capital Management: 7.5% (as of Mar 31, 2026).
• The Vanguard Group: 9.9% (as of Oct 4, 2024).
• BlackRock, Inc.: 7.3% (as of Jan 26, 2024).
• 1 more holders on the Broadcom page.

• 2 classes of shares.
• BlackRock, Inc.: 9.0% (as of Jul 29, 2026).
• Vanguard Capital Management: 7.6% (as of Jul 31, 2026).
• FMR LLC (Fidelity): 4.5% (as of Nov 5, 2026).
• 1 more holders on the Marvell page.

• Backstops on leased AI racks (debt)A backstop is a promise to cover a shortfall. If a lease customer defaults, Broadcom pays any gap between 85% of the amount owed and the racks' sale value. The Q3 10-Q puts the maximum at about $29 billion, with nothing paid. An Oct 27, 2026 8-K adds a second one at 72.5%, with a maximum of about $43 billion. Broadcom calls that one a contingent liability with "a low probability of occurring". The filings do not say whether they overlap, so they are not added. Both maximums are undiscounted, on full deployment.
• Large purchase commitments (liquidity)Purchase commitments, mainly for inventory, rose from $132 million on Nov 2, 2025 to $126.8 billion on Aug 2, 2026. They include $52.7 billion due in FY2027 and $73.0 billion in FY2028.
• Lower gross margin as AI sales grow (pricing)Broadcom's 10-Q says AI sales are likely to raise operating margin but lower gross margin. It also says customers may seek to lease chips or racks, which may bring less revenue, free cash flow or profit than expected. Gross margin was 69.1% in Q3 FY2026.
• Debt and acquired assets (debt)Debt was $59.4 billion on Aug 2, 2026, and goodwill and intangible assets were $124.1 billion of $188.1 billion total assets. Buying VMware raised debt to $67.6 billion in FY2024.

• New shares from warrants, preferred stock and an earn-out (other)Google's warrant (up to 58.97 million shares), NVIDIA's preferred (about 21.8 million, which also votes as if converted) and the Celestial AI earn-out (up to about 27.2 million) could add shares, against 876.9 million outstanding.
• Earn-out revaluations swing net income (other)Marvell revalues the Celestial AI earn-out each quarter. The losses, $331.8 million in Q1 FY2027 and $101.9 million in Q2, partly offset by a forward contract, cut net income to $34.5 million in Q1.
• Customers and rivals design their own chips (competition)Marvell's 10-K names 24 direct competitors and says some customers have chosen to make certain chips in-house. The 10-K adds that custom chips may have no other buyer if a customer ends its agreement.