In This Article:
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Nvidia will be releasing its quarterly results shortly, but it's not alone.
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Another fast-growing chipmaker -- Marvell -- is also set to release results soon.
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Its potential upside over the next year makes it a no-brainer buy right now.
Investors and analysts are eagerly looking forward to Nvidia's upcoming results for the first quarter of its fiscal 2026 (ended April 27), which will be released on May 28. That's not surprising as the company is the largest player in the fast-growing market for artificial intelligence (AI) chips.
Nvidia's chips power AI data centers of major cloud computing companies and governments around the world, and the company's growth has taken off remarkably in the past couple of years thanks to the robust demand for its graphics processing units (GPUs). There is a good chance that this semiconductor stock could sustain its recent rally after its upcoming report.
However, there's another company that's going to release its results just after Nvidia's. Marvell Technology (NASDAQ: MRVL), another key player in the AI chip market, will be reporting its fiscal 2026 first-quarter results on May 29. The stock has been hammered so far this year, but don't be surprised to see it start soaring after its quarterly report.
Let's see why Marvell stock could be set for a breakout after May 29.
Marvell Technology has guided for $1.88 billion in revenue for fiscal Q1 along with non-GAAP earnings of $0.61 per share. Those numbers would be a massive improvement over the year-ago period when the company reported adjusted earnings of $0.24 per share on revenue of $1.16 billion. This outstanding growth is going to be driven by the terrific demand for the company's custom AI processors and networking chips.
Marvell's custom AI processors are used by the likes of Amazon, Alphabet's Google, and Microsoft to power their AI data centers. Marvell management remarked on the company's March earnings conference call that it is witnessing stronger-than-expected demand from its AI customers. The good part is that these cloud giants are strengthening their relationships with the chipmaker, as they are working with Marvell on deploying its next-generation custom AI silicon as well.
As a result, Marvell is anticipating its custom AI chip revenue to increase in fiscal 2026 and beyond. It is worth noting that Marvell's AI revenue in the previous fiscal year was well above its target of $1.5 billion. The company expects to "significantly exceed our $2.5 billion target in fiscal 2026." That won't be surprising, since the company is looking to win more share of the custom AI chip market from bigger rival Broadcom through its product development moves and partnerships.