Chip Stocks Nvidia and Marvell: Wall Street Bullish Ahead of Q2 Earnings

Nvidia and Marvell Technology are expected to report strong Q2 earnings due to solid demand for their AI graphics processing units and custom AI chips, respectively. Wall Street predicts a 48% YoY growth in Nvidia's EPS to $1.01 and a 53% surge in revenue to $45.9 billion. Marvell is expected to report a 123% YoY growth in EPS to $0.67 and a 58% jump in revenue to $2.01 billion. Both stocks have received positive analyst ratings and price target upgrades ahead of their earnings announcements.

Nvidia and Marvell Technology are poised to report robust Q2 earnings, driven by surging demand for their AI graphics processing units (GPUs) and custom AI chips. Wall Street is anticipating a 48% year-over-year (YoY) growth in Nvidia's earnings per share (EPS) to $1.01 and a 53% surge in revenue to $45.9 billion [1]. Meanwhile, Marvell is expected to report a 123% YoY growth in EPS to $0.67 and a 58% jump in revenue to $2.01 billion [2].

Both companies have received positive analyst ratings and price target upgrades ahead of their earnings announcements. Nvidia's Q2 2025 earnings report, released on July 28, 2024, highlighted the company's technological leadership in AI infrastructure, with revenue surging to $30.0 billion—up 15% quarter-over-quarter and 122% year-over-year [1]. The Data Center segment, which now accounts for 88% of total revenue, delivered $26.3 billion in sales, a 16% sequential increase and 154% year-over-year growth [1].

Marvell Technology, on the other hand, has been leveraging custom silicon and optical interconnects to drive AI infrastructure growth. The company has partnered with Microsoft and Amazon on 2nm/HBM4 projects, positioning itself as a key player in the AI-driven infrastructure sector [3]. Q1 FY2026 revenue surged 63% to $1.895 billion, but FY2025 net loss of $885M highlights ongoing profitability challenges despite $1.4B free cash flow [3].

Despite the challenges, Marvell's strategic focus on infrastructure over GPU competition has positioned it as undervalued relative to peers like Nvidia and AMD. The AI infrastructure boom is reshaping the semiconductor landscape, and Marvell Technology has emerged as a critical player in this transformation [3].

Investors will closely watch both companies' earnings reports to gauge the sustainability of their growth trajectories. Nvidia's ability to scale production, innovate rapidly, and capture market share in data centers and cloud computing positions it as a cornerstone of the AI revolution. However, the long-term narrative hinges on factors such as sustained demand, geopolitical stability, and valuation realism [1].

Marvell's long-term growth potential is supported by robust R&D spending (30.48% of revenue in 2025) and strategic partnerships with hyperscalers. The company's current valuation, trading at 25x forward earnings, appears undervalued compared to peers like NVIDIA (41.1x) and AMD (96.53x) [2].

In conclusion, Nvidia and Marvell Technology are expected to report strong Q2 earnings, reflecting the surging demand for AI technologies. While both companies face challenges, their strategic positioning and technological leadership make them compelling investments for those willing to accept the associated risks.

References:
[1] https://www.ainvest.com/news/nvidia-q2-2025-earnings-defining-moment-ai-driven-tech-rally-2508/
[2] https://www.ainvest.com/news/marvell-technology-surges-2-51-1-06-billion-trading-volume-76th-session-activity-analysts-forecast-123-eps-growth-2508/
[3] https://www.ainvest.com/news/marvell-technology-ai-driven-growth-q2-earnings-potential-strategic-positioning-ai-infrastructure-boom-2508/