As hyperscalers, AI labs, and sovereign spending programs keep ramping up AI infrastructure buildouts, the networking semiconductor stocks enabling scale-out compute, optical interconnects, and custom AI chips are drawing renewed investor attention heading into August.
Current Market Snapshot
The backdrop for these four names is a semiconductor industry still growing at a historic clip even after a rough week for AI-linked equities. Global semiconductor sales reached a record $120.6 billion in May 2026, rising 9.2% sequentially and 104.1% year-over-year — the 15th consecutive month of expansion. That said, the sector took a hit late this week: Broadcom, Marvell, Credo, and Astera Labs all sold off sharply alongside the broader Magnificent Seven tech rout triggered by Alphabet and Tesla’s capex-heavy earnings reports. That pullback has left several of these names trading well off recent highs — a dynamic worth watching closely for investors considering an entry point.
Networking Semiconductor Stocks: The Data Table
| Stock | Ticker | Recent Price | Market Cap | Zacks Rank | FY27 EPS Growth Estimate |
|---|---|---|---|---|---|
| Credo Technology | CRDO | ~$208 | ~$38.8B | #1 (Strong Buy) | ~73% |
| Broadcom | AVGO | ~$374 | ~$1.78T | — | 70% (FY2026) |
| Marvell Technology | MRVL | ~$188 | ~$169B | #3 (Hold) | ~42.3% |
| Astera Labs | ALAB | ~$320-330 | ~$55-57B | Buy (consensus) | — |
Prices reflect recent trading following this week’s broad semiconductor sector pullback.
1. Credo Technology Group (CRDO)
Latest News
Credo’s networking portfolio is increasingly the core of its growth story. Fourth-quarter fiscal 2026 revenue surged 157% year-over-year to $437 million, with non-GAAP diluted EPS of $1.16, up 12.6% year-over-year. Management is now forecasting more than 80% revenue growth in fiscal 2027.
The Catalyst
The company’s expanding optical networking business is expected to generate more than $600 million in revenue during fiscal 2027. That growth is spread across four product lines. ZeroFlap optics, silicon photonics, photonic integrated circuits, and optical digital signal processors. Each individually projected to contribute more than $100 million.
Technicals & Fundamentals
- Zacks Rank #1 (Strong Buy) with a Growth Score of B
- Fiscal 2027 EPS consensus implies roughly 73% year-over-year growth
- Consensus estimates have been revised upward over the past 30 days
- Credo has also reported a healthy pipeline of PCIe Gen 6 active electrical cables (AECs) and retimers, with additional customer wins expected to support continued growth
Bull Case vs. Bear Case
Bull case: Credo’s diversified optical product lineup and strong design-win momentum give it multiple simultaneous growth vectors heading into fiscal 2027. And the Strong Buy rating reflects broad analyst confidence.
Bear case: The stock has pulled back sharply in recent sessions amid the broader semiconductor selloff, and Credo’s smaller scale relative to Broadcom and Marvell makes it more volatile on both earnings beats and any signs of AI capex slowing.
2. Broadcom (AVGO)
Latest News
Broadcom continues to benefit from rising AI semiconductor demand, most notably through its role designing custom AI accelerators (ASICs) for hyperscaler customers. The company’s newly launched Tomahawk 6 switch chip delivers 102.4 Tbps of switching capacity, allowing hyperscalers to flatten AI networks into just two tiers. Reducing latency, power consumption, and cost.
The Catalyst
Broadcom has also rolled out its PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners including Micron and Teledyne LeCroy, expanding its footprint in next-generation data center connectivity.
Technicals & Fundamentals
Broadcom’s consensus EPS growth estimate for fiscal 2026 (ending October 31) stands at 70%, with the company having projected AI chip revenue reaching $56 billion this fiscal year and $100 billion in fiscal 2027. Mizuho named Broadcom among its top semiconductor picks for 2026 alongside Nvidia and Lumentum. Citing strength in AI accelerators and optical networking.
Bull Case vs. Bear Case
Bull case: Custom ASIC partnerships with Google, Meta, and OpenAI give Broadcom highly visible, recurring revenue tied directly to hyperscaler AI budgets, and the Tomahawk 6 launch strengthens its position in AI networking infrastructure specifically.
Bear case: Broadcom’s non-AI semiconductor segments have shown weakness in recent quarters. And as the largest, most AI-exposed name on this list, it was among the hardest hit in this week’s tech-led selloff — a reminder of how tightly the stock now trades with AI capex sentiment.
3. Marvell Technology (MRVL)
Latest News
Marvell posted non-GAAP EPS of 80 cents in its most recent quarter, with the Zacks Consensus Estimate for fiscal 2026 earnings having been revised upward over the past 60 days.
The Catalyst
Marvell’s stronghold in PAM and ZR optical solutions, along with its expansion into custom compute and data-infrastructure semiconductors, positions it to benefit from the same scale-out and scale-up networking demand driving its peers. The company designs data-infrastructure chips spanning networking, storage, custom compute, and optical/electrical interconnect products.
Technicals & Fundamentals
- Zacks Rank #3 (Hold)
- Fiscal 2027 EPS consensus implies approximately 42.3% year-over-year growth
- Market cap of roughly $169 billion makes it the second-largest name on this list after Broadcom
Bull Case vs. Bear Case
Bull case: Marvell’s established position in optical interconnects and custom silicon for hyperscalers gives it a diversified revenue base across multiple AI infrastructure layers.
Bear case: The current Hold rating reflects more tempered analyst enthusiasm relative to Credo and Astera Labs, and Marvell’s growth rate. While solid, trails the pace of its smaller, more AI-networking-focused peers.
4. Astera Labs (ALAB)
Latest News
Astera Labs is benefiting from rising demand for PCIe 6 signal conditioning and AI fabric switching as hyperscalers expand rack-scale AI deployments. The company has shipped its Aries 6 PCIe/CXL Smart Retimers, Smart Cable Modules, and Smart Gearboxes. And its Scorpio Smart Fabric Switches are ramping toward volume production.
The Catalyst
Astera’s rack-scale connectivity strategy, combining hardware with its COSMOS software suite, is expanding its addressable market. The company’s early bet on UALink, an open high-speed interconnect standard, targets a multibillion-dollar opportunity by 2029, with UALink-compatible product samples planned for 2026. Multiple sell-side firms have raised price targets sharply this year. Including Stifel (to $460) and BofA (to $450), reflecting rising confidence in the connectivity roadmap.
Technicals & Fundamentals
Astera Labs carries a consensus “Buy” rating from analysts, with a market capitalization in the $55-57 billion range depending on recent trading levels. The stock has been notably volatile in 2026, having touched an all-time high above $499 before pulling back sharply alongside the broader chip sector this week.
Bull Case vs. Bear Case
Bull case: A first-mover advantage in PCIe 6.0 and CXL connectivity, combined with the long-term UALink opportunity, gives Astera Labs a differentiated growth path as AI racks scale up in complexity.
Bear case: Astera Labs faces direct competition from both Broadcom and Credo Technology in overlapping product categories. And its smaller size and higher valuation multiple make it the most volatile stock on this list during broad tech selloffs.
Sector Sentiment Snapshot and Forecast
Networking semiconductors sit at the center of the AI infrastructure buildout story, and that’s both the opportunity and the risk heading into August. Demand drivers remain intact: scale-out networking, optical interconnects, custom ASICs. And rack-scale connectivity are all expanding as hyperscalers push toward faster interconnect speeds like 800G and 1.6T. But this week’s sharp pullback across all four names — following Alphabet’s raised capex guidance and Tesla’s disappointing free cash flow — underscores how tightly these stocks now trade with sentiment around AI spending sustainability.
For August, the names most likely to see continued momentum are those with diversified product lines and recent upward estimate revisions. Credo’s Strong Buy rating and Broadcom’s expanding ASIC partnerships stand out on that basis. Marvell and Astera Labs offer more mixed near-term signals: Marvell’s Hold rating suggests more measured expectations. While Astera Labs’ volatility cuts both ways for investors willing to stomach bigger swings in exchange for exposure to its longer-term UALink opportunity.
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Disclaimer: This publication is entirely for informational and journalistic purposes and does not constitute formal financial, investment, or legal advice. All market investments carry inherent risks of capital loss. Always complete independent due diligence prior to executing equity trades.
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