ZACKS·2025-04-10 13:00Core Insights - U.S. stock markets have experienced extreme volatility due to the imposition of "Liberation Day" tariffs, with AI infrastructure stocks showing significant valuation potential [1][3][4] Group 1: Market Volatility - The Dow fell over 4,500 points and the Nasdaq Composite dropped 13% from April 3-8, entering bear market territory [3] - The S&P 500 declined more than 12% and approached a bear market, closing below 5,000 for the first time since April 2024 [4] - Following a tariff rate restriction to 10% for most trading partners, the S&P 500 surged 9.5%, marking its third-largest single-day rally since World War II [5] Group 2: AI Infrastructure Stocks - Five AI infrastructure stocks with favorable Zacks Rank include NVIDIA Corp. (NVDA), Broadcom Inc. (AVGO), Marvell Technology Inc. (MRVL), Jabil Inc. (JBL), and Super Micro Computer Inc. (SMCI) [2][7] - These stocks have strong short-term and long-term revenue and earnings growth potential, with positive earnings estimate revisions in the last 30 days [7] Group 3: NVIDIA Corp. (NVDA) - NVIDIA is the leader in generative AI-powered GPUs, with over 1.3 million Hopper GPUs and 3.6 million Blackwell GPUs sold [8] - Upcoming products include Blackwell Ultra in 2025 and Vera Rubin in 2026, with a shift towards reasoning AI models expected to enhance revenue generation [9][10] - Expected revenue and earnings growth rates for the current year are 52.1% and 47.5%, respectively, with a Zacks Consensus Estimate improvement of 0.5% [11] Group 4: Broadcom Inc. (AVGO) - Broadcom's AI revenues surged 220% to $12.2 billion in fiscal 2024, representing 41% of semiconductor revenues [13] - The company is set to ship next-generation XPUs in 3 nanometers to hyperscale customers by the second half of fiscal 2025 [14] - Expected revenue and earnings growth rates for the current year are 21% and 35.5%, respectively, with a Zacks Consensus Estimate improvement of 0.6% [16] Group 5: Marvell Technology Inc. (MRVL) - Marvell's data center revenues increased 98% year-over-year, driven by AI demand for PAM products and ZR electro-optics [20] - Expected revenue and earnings growth rates for the current year are 43.8% and 75.8%, respectively, with a Zacks Consensus Estimate improvement of 0.4% [22] Group 6: Jabil Inc. (JBL) - Jabil benefits from momentum in AI-powered data center infrastructure and has a focus on product diversification [25] - Expected revenue and earnings growth rates for the current year are -3.4% and 5.5%, respectively, with a Zacks Consensus Estimate improvement of 2.1% [27] Group 7: Super Micro Computer Inc. (SMCI) - Super Micro provides IT solutions for AI/ML and cloud technologies, with a focus on NVDA's high-performance GPUs [31] - Expected revenue and earnings growth rates for the current year are 59.2% and 15.4%, respectively, with a Zacks Consensus Estimate remaining unchanged [34]