MRVL vs. APH: Which AI Connectivity Stock is a Better Buy Now?

With the AI boom to continue driving growth for the semiconductor industry, the question remains: Which stock makes for a better investment pick today? Let’s dive into the fundamentals, valuations, growth outlook and risks for each company.

The Case for MRVL Stock

Networking remains a key beneficiary of rising AI cluster size and complexity. Marvell now expects its interconnect business to grow more than 70% year over year in fiscal 2027, supported by scale-out PAM ramp-ups and growing contributions from scale-up and scale-across networking.

Within optics, the company expects TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters and sees a path to about $1 billion annualized DCI module revenues during fiscal 2028. Management also expects scale-up optics to ramp up in fiscal 2028, with revenues now forecasted to double from the prior $150 million outlook.

Furthermore, MRVL’s collaboration spans optics, NVLink Fusion integration and AI-RAN, widening the set of platforms where Marvell silicon can be pulled through. During the first quarter of fiscal 2027, Marvell issued $2 billion of Series A Convertible Preferred Stock to NVIDIA, signaling strategic alignment and supporting investment in scale-up connectivity and custom platforms.

Marvell’s first-quarter fiscal 2027 results reinforced its momentum in AI infrastructure. Revenues rose 28% year over year to $2.42 billion, with data center up 27% to $1.83 billion and representing 76% of sales. Non-GAAP EPS was 80 cents. Management guided second-quarter fiscal 2027 revenues to about $2.7 billion at the midpoint. The Zacks Consensus Estimate for MRVL’s fiscal 2027 earnings implies year-over-year growth of 42.3%. Estimates have remained unchanged for the past 60 days.

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The Case for APH Stock

Amphenol continues to widen its addressable market through acquisitions that add high-technology interconnect capabilities. CommScope expands the company’s fiber optic and cable connectivity portfolio, while Andrew, Trexon and other prior deals broaden communications, defense and industrial offerings.

CommScope is also gaining traction in optical interconnect, with IT datacom expected to approach half of its 2026 sales versus about one-third in 2025. Amphenol also acquired El.Com, which adds complex interconnect and high-voltage cable assemblies and Wilder Technologies, which adds high-performance test and measurement solutions for high-speed applications.

Amphenol’s high-speed copper, fiber optic and power interconnect portfolio gives it exposure across multiple AI data-center architectures. In second-quarter 2026, IT datacom represented 43% of sales and grew 63% organically year over year, while sequential sales rose 22% largely on AI-related demand.

For the third quarter of 2026, Amphenol expects revenues between $9.3 billion and $9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates. Adjusted earnings are projected between $1.40 and $1.42 per share, representing growth of 51-53% from the prior-year quarter. The Zacks Consensus Estimate for APH’s third-quarter earnings suggests year-over-year growth of 52.7%. Estimates have been revised upward in the past 30 days.

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Stock Price Performance and Valuation of MRVL & APH

Year to date, MRVL shares have gained 154.2% compared with the surge of 18.1% in APH shares.

YTD Performance Chart

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MRVL is trading at a forward sales multiple of 13.18X, above its median of 8.21X over the past year. APH’s forward sales multiple sits at 4.99X, significantly above its median of 5.74X over the past year.

Forward 12-Month (P/S) Valuation Chart

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Conclusion: MRVL vs. APH Stock

Marvell Technology and Amphenol offer compelling exposure to the structural growth in AI connectivity infrastructure. However, MRVL appears better positioned for investors seeking higher growth, supported by accelerating interconnect demand, strong AI-driven revenue growth and strategic alignment with NVIDIA. In terms of valuation, MRVL seems to be trading at a premium. Given these factors, APH seems to be a safer bet at present. MRVL and APH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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