According to Bank of America, AI trade could get a boost this week, with three semiconductor companies reporting revenues during the group’s tough time. “We expect that as U.S. cloud customers and sovereign AI Investments’ CAPEX remains the only reliable highlight demand location in the global economy, the results of AVGO, MRVL and CRDO will reignite interest in the (Artificial Intelligence) semifinals,” analyst Vivek Arya wrote in a note to clients this week. “Arya’s speech came, each of these three chips and the others ended on negative territory last week. Bloomberg News reported last week that people familiar with the matter said the Trump administration wants to tighten restrictions on China’s chip industry. The PHLX semiconductor sector index fell 7.2% during this period, while the S&P 500 fell about 1%. Lower movement reduces PHLX by more than 5%. .SOX YTD Mountain .Sox, AI Chip Darling Nvidia at the beginning of the year, also closed last week, with gross margin dropping in the fourth quarter, with revenue highest in two years. Stocks have performed poorly this year after the development of Chinese startup DeepSeek in January caused investors to be anxious about competition and spending around AI. But the turnaround time for the group may be stored in the coming days. U.S. chip giant Broadcom fell nearly 9% last week and fell more than 16% so far, possibly helping to revitalize enthusiasm among investors with its first-quarter fiscal 2025 results following Thursday’s bell. “We expect management to recover a $60 billion long-term (service addressable market) in custom chips (XPUs) and networks, and as more interactions with new partners (we think Openai, Apple),” Arya wrote. “The consensus model for CY27 is only about $3.2 billion or <50% of SAM capture." For Marvell Technology, which will be reported after the bell on Wednesday, Arya believes that telecom recovery, Amazon’s “stable” demand for AI chips, and more growth in AI Optics may lead to consensus on silicon and optical sales. "We separately expect MRVL to continue to participate in the custom chip program even in CY26 (ULTRA/2.5, or some design work in TRN-3), even in CY26," analysts also wrote. Stocks fell by more than 11% last week and fell by more than 19% in 2025. In addition to Malville, Arya said chip maker Credo Technology may be a beneficiary of Amazon's demand for active cable use in AI clusters. Credo's share price fell more than 17% last week and has fallen more than 21% so far, starting a three-person earnings performance on Tuesday after the market ended.
Three stocks that can reignite AI trading this week | Real Time Headlines
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