#Gate股票观点挑战 $MRVL

Marvell Earnings Preview: Is Another Strong Rally in the AI Chip Sector Already Set in Stone?

This week, Marvell Technology’s (MRVL) earnings report is about to be unveiled, and the market is eagerly awaiting its answer to one question: because everyone is hoping this earnings report can answer one question: “Is the rebound in chip stocks, driven recently by a steady stream of positive industry developments, an overextension of the rally, or a signal that a new major uptrend is beginning?” Little God of Wealth believes that regardless of Marvell’s earnings figures, the outlook for chip stocks has already been settled: with Nvidia’s earnings report laying the foundation for industry growth, combined with the completion of the technical adjustment in chip stocks, the major uptrend of a new rally is approaching:

I. Fundamentals Set the Tone: Nvidia’s Earnings Confirm That the AI Industry’s Dividends Are Far From Over

The market has long been divided over a core question: Has AI’s high growth already peaked, and is demand for computing power gradually becoming saturated? Nvidia’s latest quarterly earnings report, however, completely dispelled market doubts with truly stunning figures, establishing a performance floor for AI chip companies across the entire sector. Quarterly revenue of $96.2 billion, a year-on-year surge of 106%, combined with 117% growth in its data center business and an exceptionally high gross margin of 75%, directly confirmed the core state of today’s AI industry: computing power and chip supplies remain in persistent shortage, while end-user demand far exceeds market supply.

This broader industry environment has directly opened up room for growth for second-tier AI chip leaders such as Marvell. If Nvidia is the “absolute leader” in the AI computing-power sector, then Marvell is the “core infrastructure builder” of the AI computing-power ecosystem. It has deep expertise in key areas including high-speed interconnects, TPU supporting chips, and memory controller chips, is closely tied to the global demand for AI computing-power infrastructure, and is fully benefiting from the industry’s strong growth.

II. Major Partnership Takes Shape: Tying Into Google’s AI Ecosystem, MRVL’s Growth Potential Fully Unlocked

The core catalyst behind Marvell’s latest rally stems from the comprehensive upgrade of its deep strategic partnership with Google, which is also the key positive factor driving expectations for its earnings report higher. Recently disclosed SEC filings show that Marvell and Google have reached a deeply integrated partnership under which Marvell will develop customized core supporting chips for Google’s self-developed TPU tensor processing units, including AI inference accelerators, high-speed network interfaces, and memory controllers, comprehensively enabling upgrades and iterations of Google’s AI computing-power clusters.

This partnership is not merely a simple business tie-up, but also a deep ecosystem alliance. Google has obtained the right to subscribe for up to $12.2 billion worth of Marvell shares, upgrading the relationship from a business partnership to a community of shared interests. Marvell has formally and deeply entered Google’s global AI computing-power deployment system. As Google continues to increase investment in self-developed AI and expand the scale of its computing-power clusters, it will bring Marvell sustained, stable, and substantial incremental orders, fully unlocking its medium- and long-term earnings ceiling.

The market’s biggest current point of contention is whether the positive impact of this Google partnership and the expectations of institutions collectively turning bullish have already been priced in. Judging from both the share-price action and the fundamentals, the answer is no. The market has so far only priced in the emotional premium from the partnership’s completion, without fully pricing in the future incremental orders and the potential for earnings realization. Several Wall Street institutions have recently raised their price targets for Marvell in rapid succession, sharply increasing them from $230 to $265, and continue to be bullish on the high-growth potential of its AI chip business. This is sufficient to prove that market expectations for its subsequent earnings realization still have ample room to rise.

III. Technicals: The Memory Chip Sector Has Completed Its Technical Adjustment, and a Reversal May Be Ahead

Memory chip and AI chip subsector names represented by SanDisk and Western Digital previously experienced a complete five-wave decline on the daily chart. The sector’s overall valuation has returned to a reasonable range, with the bubble fully cleared and risks thoroughly released. A five-wave decline is a classic deep-adjustment pattern in the market, meaning that bearish momentum has been completely exhausted. Signals that the sector has bottomed are clear, and a reversal and recovery rally will most likely begin next.

In terms of the sector’s rhythm, after AI chip leaders continued to climb earlier, most subsector names became trapped in volatile adjustments, while market capital fully rotated between high- and low-level names and rebalanced positions. Now that the adjustment cycle has ended, combined with continued improvement in industry fundamentals and the boost from major positive partnerships, the sector is experiencing dual resonance between technical and news-driven factors. The certainty of capital returning and a broad rebound is extremely high. As a high-quality name combining AI computing power, high-speed interconnects, and the Google core theme, Marvell has undergone a sufficient technical adjustment and has a solid chip structure. It may be the first to start rising and lead the sector.

IV. Marvell Earnings Preview: High Expectations May Be Realized

Considering the three major dimensions of industry logic, partnership catalysts, and technical patterns, Marvell’s upcoming earnings report is highly likely to fulfill high expectations and exceed forecasts upon release. The company had already sent positive signals earlier, with expectations for data center revenue growth continuing to rise. Combined with the new orders brought by its partnership with Google, this quarter’s results are expected to maintain a high-growth trend and further validate the growth potential of its AI chip business.

Based on the views above, Little God of Wealth believes Marvell Technology’s upcoming earnings report will most likely be “good news.” However, regardless of the outcome, the reversal in the chip stock rally may already be taking shape, and building long positions on dips is a wise choice. Finally, wishing everyone prosperity every day!@Gate 广场