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Nvidia (NASDAQ:NVDA) isn't slowing down. Barclays analyst Thomas O'Malley just reaffirmed his Buy rating and hiked his price target to $175, signaling confidence in the AI giant's momentum. With $35.08 billion in quarterly revenuenearly doubling last year's $18.12 billionNvidia is printing money. But not everyone's bullish. Insider sentiment has turned cautious, with key executives cashing out big. Case in point: Director Tench Coxe offloaded 1 million shares, raking in $131 million. Meanwhile, Barclays warns that while Nvidia's GPU dominance remains intact, customers are actively seeking cheaper alternativesa trend that could shake up the semiconductor hierarchy.
Enter Marvell (NASDAQ:MRVL) and Broadcom (NASDAQ:AVGO)two AI semiconductor contenders gaining serious traction. Barclays raised Marvell's price target to $150, betting big on its proprietary serializer/deserializer tech and a projected $4 billion ASIC market by 2026. Broadcom got a boost, tooits target jumped to $260, as analysts expect $21 billion to flow into its custom chip division by FY26. Lumentum Holdings (NASDAQ:LITE) is another dark horse, scoring a double upgrade to Overweight thanks to explosive hyperscaler adoption beyond Google (NASDAQ:GOOG). Barclays is drawing battle lines: the AI chip market is splitting into haves and have-nots, and traditional semis, analog, and PC chips are getting left in the dust.
The big picture? AI semiconductors are heading into a $1 trillion total addressable market by the end of the decade, and Nvidia won't have the whole pie to itself. While NVDA is still king, demand for lower-cost, high-efficiency AI chips is surging. Marvell, Broadcom, and Lumentum are moving in fast, and the semiconductor shake-up is just beginning. Investors looking for AI exposure might want to pay attentionbecause this market is about to get a whole lot more competitive.
This article first appeared on GuruFocus.