ZACKS·2025-12-22 15:11Core Insights - The rally of U.S. stocks, particularly in the technology sector, is driven by the unprecedented adoption of generative and agentic AI technology, continuing into 2025 albeit at a slower pace [1] - Three AI chipset manufacturing giants are highlighted as key players expected to dominate the AI space in 2026: NVIDIA Corp. (NVDA), Micron Technology Inc. (MU), and Marvell Technology Inc. (MRVL) [1] NVIDIA Corp. (NVDA) - NVIDIA reported strong third-quarter fiscal 2026 earnings with revenue growth exceeding 50% year-over-year for the tenth consecutive quarter [5] - Data Center revenues, which account for 89.8% of total revenues, surged 66% year-over-year and 25% sequentially, driven by high demand for Blackwell GPU computing platforms [6] - NVIDIA anticipates revenues of $65 billion for the fourth quarter of fiscal 2026, surpassing the Zacks Consensus Estimate of $60.3 billion, with a projected non-GAAP gross margin of 75% [9] - The company expects between $3 trillion and $4 trillion in AI infrastructure spending by the end of the decade, indicating a bullish demand scenario [6][10] - NVIDIA's forward P/E is 36.8%, with an expected revenue growth rate of 42.2% and earnings growth rate of 52.9% for the next year [11][10] Marvell Technology Inc. (MRVL) - Marvell reported third-quarter fiscal 2026 earnings with data center revenues of $1.52 billion, a 37.8% increase year-over-year [12] - The company is expanding in AI silicon and optics, with a planned acquisition of Celestial AI, which specializes in photonic technology [15][17] - MRVL expects fourth-quarter revenues to be $2.20 billion, reflecting an 18.52% year-over-year improvement, with projected non-GAAP earnings per share of $0.79 [18] - Marvell's forward P/E is 28.8%, with expected revenue and earnings growth rates of 22.5% and 25.7%, respectively, for the next year [20] Micron Technology Inc. (MU) - Micron reported fiscal first-quarter 2026 earnings with core cloud memory sales of $5.28 billion, up 99.5% year-over-year, driven by high demand for HBM chips [21] - The company is capitalizing on the growing adoption of AI servers, which require significantly more memory than traditional servers, boosting demand for DRAM [23] - Micron expects revenues for fiscal second-quarter 2026 to be between $18.3 billion and $19.1 billion, with diluted EPS projected between $8.22 and $8.62 [26] - Micron's forward P/E is 11.4%, with expected revenue and earnings growth rates of 53.7% and over 100%, respectively, for the current year [27][28]