Admittedly, both stocks have already enjoyed nice rallies to start 2024, with Marvell’s stock up 15% on the year so far and Nvidia’s ahead 17%. Read: If Nvidia looked more like Salesforce, it might unlock billions more in cash, analyst says
Does Nvidia have a supplier?
But Nvidia doesn't act alone. It has several suppliers it depends on to provide technology and materials used to make its finished products. These would be the ax and shovel head suppliers and wooden handle makers of the "picks and shovels" theory. One of these suppliers to the supplier is Marvell Technology (MRVL 2.88%).
Should investors buy NVIDIA (Nvidia)?
If investors are looking for a company that's expected to grow at a faster pace than Nvidia but is trading at a cheaper valuation, Marvell Technology could be an alternative option. Nvidia has a rich sales multiple of 31, meaning investors will have to pay a premium to buy into its top- and bottom-line growth.
