Market Overview - Wall Street's rally in U.S. stocks is expected to continue into 2026, with the Dow, S&P 500, and Nasdaq Composite projected to rise by 13%, 16.4%, and 20.4% respectively [1] - Financial analysts and economists are optimistic about the potential for a continued rally in 2026 [1] AI Infrastructure Growth - The demand for data center capacity is surging due to the growth of cloud computing, indicating a robust market for AI infrastructure [2] - Goldman Sachs and Bank of America predict AI infrastructure capital expenditure (capex) will exceed $1 trillion by 2028, while JP Morgan and Citigroup forecast a cumulative total of $5 trillion by 2030 [3] - McKinsey & Co. estimates that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030 [3] Capital Expenditure Trends - Four of the "magnificent 7" stocks are set to invest $380 billion in AI infrastructure in 2025, marking a 54% year-over-year increase, with expectations to rise to $440 billion in 2026 [4] U.S. Economic Fundamentals - The U.S. GDP growth rate increased by 4.3% in Q3 2025, following a 3.8% growth in Q2, with consumer spending rising by 3.5% year-over-year [5] - Analysts predict a 7.6% increase in total earnings for the S&P 500 in Q4 2025, with a 12.3% increase expected in 2026 [6] Federal Reserve Rate Cuts - The Federal Reserve lowered the benchmark lending rate by 75 basis points in 2025, following a 1% reduction in 2024, with expectations for two additional 25 basis point cuts in 2026 [7] Company-Specific Insights Marvell Technology Inc. (MRVL) - MRVL is positioned for growth in AI-driven data centers, with a focus on custom XPU silicon and partnerships with hyperscalers [9][11] - The company is acquiring Celestial AI, which specializes in photonic fabric technology, expected to close in Q1 FY 2027 [14] - MRVL's revenue and earnings growth rates are projected at 22.3% and 26.1% respectively for the next year, with a long-term EPS growth rate of 46.9% [18] PG&E Corp. (PCG) - PG&E operates California's only nuclear power plant and is integrating AI to enhance efficiency and safety at Diablo Canyon [21][23] - The company has an expected revenue and earnings growth rate of 6.4% and 9.1% respectively for the current year [24] Snap Inc. (SNAP) - SNAP is integrating AI across its platform, creating monetization opportunities beyond traditional advertising [25] - The partnership with Perplexity will generate $400 million over one year, targeting Snap's 943 million monthly active users [27] - SNAP's expected revenue and earnings growth rates are 13.4% and 52.3% respectively for the current year [30]

Key Takeaways Credo posts Q2 gross margin of 67.7% and revenues up 20% sequentially and 272.1% year over year.Strong AEC and IC demand plus disciplined expenses fueled sharp operating and net-margin gains.Fiscal 2026 guidance points to mid-single-digit sequential growth and roughly 170% annual revenue growth.Credo Technology Group Holding Ltd (CRDO) delivered another record-setting quarter in the second quarter of fiscal 2026, showcasing not only powerful top-line momentum but also notable margin expansion. ...

Core Insights - Marvell Technology, Inc. reported third-quarter fiscal 2026 earnings of 76 cents per share, exceeding the Zacks Consensus Estimate by 1.3%, and showing a significant year-over-year increase of 76.7% from 43 cents per share last year [1] - The company's revenues for the third quarter reached $2.08 billion, surpassing the Zacks Consensus Estimate by 0.61%, and reflecting a year-over-year growth of 36.8% from $1.52 billion [2] Revenue Breakdown - Data center revenues amounted to $1.52 billion, marking a 37.8% year-over-year increase and 1.8% sequential growth, contributing 73.2% of total revenues [4] - Enterprise networking revenues rose 57% year over year and 23% sequentially to $237.2 million, accounting for 11.4% of total revenues [5] - Carrier infrastructure revenues increased 98% year over year and 29% sequentially to $167.8 million, representing 8.1% of total revenues [6] - Automotive/Industrial revenues declined 58% year over year and 54% sequentially to $35 million, contributing 2% of total revenues [7] - Consumer revenues grew 21% year over year and 1% sequentially to $116.6 million, representing 6% of total revenues [8] Operating Performance - Non-GAAP gross profit was $1.24 billion, a 35% increase year over year, with a non-GAAP gross margin of 59.7%, expanding 30 basis points sequentially but contracting 80 basis points year over year [9] - Non-GAAP operating expenses totaled $485 million, slightly up from $466.9 million in the previous year, while the non-GAAP operating margin improved to 36.3%, expanding 660 basis points year over year [9] Future Guidance - For the fourth quarter, Marvell Technology expects revenues to be approximately $2.20 billion (+/- 5%), indicating an 18.52% year-over-year improvement [11] - The projected non-GAAP gross margin is in the range of 58.5-59.5%, with estimated non-GAAP operating expenses of around $515 million [12] - Non-GAAP earnings per share for the fiscal fourth quarter are projected to be $0.79 (+/- $0.05), reflecting a 74.4% year-over-year improvement [12]

Core Insights - Marvell Technology, Inc. reported second-quarter fiscal 2026 earnings of 67 cents per share, matching the Zacks Consensus Estimate, and reflecting a 123.3% year-over-year increase [1][10] - Revenues for the quarter were $2.01 billion, slightly missing the Zacks Consensus Estimate by 0.23%, but showing a 57.6% year-over-year growth [2][10] - The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 3.6% [1] Revenue Breakdown - Data center revenues reached $1.49 billion, up 69.2% year over year and 3.5% sequentially, accounting for 74.3% of total revenues [4][10] - Enterprise networking revenues increased by 28.2% year over year and 9.1% sequentially to $193.6 million, representing 9.7% of total revenues [5] - Carrier infrastructure revenues rose 71% year over year to $130 million but declined 6% sequentially, making up 6% of total revenues [6] - Automotive/Industrial revenues remained flat at $76 million, constituting 4% of total revenues [7] - Consumer revenues increased by 30% year over year and 84% sequentially to $116 million, representing 6% of total revenues [8] Operating Performance - Non-GAAP gross profit was $1.19 billion, a 62.9% increase year over year, with a non-GAAP gross margin of 59.4%, down 250 basis points year over year [9] - Non-GAAP operating expenses totaled $492.6 million, up from $455.8 million in the previous year, with a non-GAAP operating margin of 34.8%, expanding 870 basis points year over year [9][11] Future Guidance - For the third quarter, Marvell expects revenues to be around $2.06 billion (+/- 5%), indicating a projected year-over-year improvement of 57.96% [12] - The company anticipates non-GAAP earnings per share for the fiscal third quarter to be 74 cents (+/- 5 cents), reflecting a strong year-over-year improvement of 123.33% [13]