Company Overview - Marvell Technology (NASDAQ:MRVL) is set to announce its Q2 2026 earnings on August 28, 2025, with anticipated revenues of approximately $2.01 billion, reflecting a 58% year-over-year increase, and earnings predicted to be around $0.67 per share [2] - The expected growth is driven by strong demand for AI in the data center market, where Marvell's custom silicon solutions and electro-optics products are gaining significant traction [2] Financial Performance - Marvell currently has a market capitalization of $63 billion, with revenue for the last twelve months amounting to $6.5 billion [3] - The company reported operational profits of $40 million, but a net income of -$491 million [3] Earnings Analysis - Historical data shows that Marvell has had 17 earnings data points over the past five years, with 6 positive and 11 negative one-day (1D) returns, resulting in a positive return occurrence of approximately 35% [5] - This percentage declines to 25% when considering the last three years [5] - The median of the 6 positive returns is 13%, while the median of the 11 negative returns is -5.6% [5] Correlation and Trading Strategy - A lower-risk approach involves assessing the correlation between short-term and medium-term returns following earnings, with a focus on pairs that demonstrate the highest correlation [6] - If the 1D post-earnings return is positive, traders might consider positioning themselves "long" for the subsequent 5 days based on the correlation between 1D and 5D returns [6] Peer Performance Impact - The performance of peers can influence Marvell's post-earnings stock response, with pricing potentially beginning before the earnings announcement [7]

Core Viewpoint - Two major chipmakers have recently fallen out of the trillion-dollar club, but they are seen as potential investment opportunities to regain this status by 2025 [2]. Company Summaries Taiwan Semiconductor Manufacturing (TSMC) - TSMC specializes in advanced chipmaking processes and has seen revenue and profit acceleration due to high demand for GPUs in data centers [3]. - Apple plans to invest $500 billion in U.S. manufacturing and silicon engineering over the next four years, significantly benefiting TSMC as it utilizes a large share of TSMC's fabrication capacity [5]. - TSMC is also expanding its U.S. operations with an additional $100 billion investment in chipmaking infrastructure, building on a previous $65 billion commitment [6]. - Wall Street analysts are optimistic about TSMC's prospects, driven by increasing AI infrastructure investments from major tech companies [7][8]. - TSMC's current market cap is $916 billion, approximately 9% away from a trillion-dollar valuation, with no significant financial issues indicated [9]. - The company's forward P/E ratio of 19.5 is in line with its three-year average, presenting a buying opportunity before it potentially reclaims its trillion-dollar valuation [10]. Broadcom - Broadcom specializes in AI-powered products and network equipment for data centers, benefiting from the rising demand for custom silicon solutions [11]. - The recent stock sell-off is attributed to macroeconomic concerns rather than specific business issues, with historical trends showing quick rebounds after dips [12]. - Major tech companies are expected to spend over $320 billion on AI infrastructure this year, which will positively impact Broadcom's business [13]. - Broadcom has been selected by additional hyperscalers to develop custom accelerators for next-generation models, indicating its growing importance in the AI space [14]. - Investor confidence in Broadcom is expected to rise as the company continues to support big tech in building AI infrastructure, positioning it to return to the trillion-dollar club soon [15].