GF Securities sees chip-sector selloff as buying chance in Nvidia and Marvell

what happened

According to Seeking Alpha, GF Securities believes the recent drop in semiconductor shares has created a chance to buy higher-quality names, specifically Nvidia and Marvell. The firm's analysts attended the OCP Global Summit in San Jose last week, where the industry showed a move toward tightly integrated hardware design among large cloud operators.

Analyst Jeff Pu said Nvidia's networking roadmap pairs co-packaged optics with a new pluggable transceiver standard developed with Cisco to pack more density into AI data centers. He argued these modules keep field serviceability while approaching the efficiency of co-packaged optics. Pu sees no near-term power shortage, pointing instead to licensing and liquid cooling as the main obstacles.

Pu also highlighted the growing role of CPUs in inference for agentic AI, which he estimates could roughly double the total addressable market for processors. He noted that GPU utilization during decode workloads averages only 20–30%, and that memory and cooling are emerging bottlenecks. Despite broad market weakness, he suggested accumulating quality stocks, naming Nvidia, Marvell and the CPU supply chain as preferred exposures while flagging risks such as slower AI demand.

why it matters

For markets, the report suggests analysts view the chip sell-off as an opportunity rather than a sign of broken fundamentals. AI infrastructure spending remains the key driver, so investors will watch for signs of slowing AI demand, supply constraints and competition.

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