Nvidia reported $96.2 billion in revenue in its fiscal second quarter, up 106% year over year. This shows why AI spending is key for many stocks in September.
Nvidia, Broadcom, and Marvell Technology are at the heart of this spending wave. They provide chips and network hardware for big data centers. Their performance gives clues about AI computing demand.
Broadcom aims to keep and gain new custom-chip clients. Marvell saw 37% revenue growth year-over-year and upped its 2028 forecast by 10%. These facts make them top stocks to watch as earnings reports come in.
Just because a stock’s revenue grows doesn’t mean it’s a good buy. The best stocks should show lasting success and a fair price for future growth.
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Stocks to Watch: Market Trends and September Catalysts
September can change how we see rates, earnings, and risk. Investors keep an eye on the Federal Reserve, job numbers, and company updates.
Nvidia Stock: AI Demand, Earnings Growth, and Valuation Outlook
Nvidia is a top stock to watch as AI spending grows. The company expects $108 billion in quarterly revenue, up 89% from last year. This is more than Morningstar’s $105 billion estimate.
Morningstar upped Nvidia’s fair value to $310 after the earnings. It now sees $700 billion in revenue for fiscal 2028, up from $570 billion. This growth depends on cloud and data-center demand.
| Measure | Current Outlook | Key Factor |
|---|---|---|
| Quarterly revenue guidance | $108 billion | AI chip and data-center demand |
| Year-over-year revenue growth | 89% | Large-scale infrastructure orders |
| Fiscal 2028 revenue outlook | About $700 billion | Hyperscaler capital spending |
| Current-quarter gross margin | About 74% | Higher memory costs |
| January-quarter gross margin | Potentially 71.5% | Product mix and component pricing |
Nvidia expects its biggest U.S. hyperscaler customers to spend $1.3 trillion on AI next year. This could boost chip sales. But, it also depends on turning AI projects into services that make money.
Gross margin is expected to drop to 74% this quarter and could hit 71.5% in January. Morningstar says this is due to higher memory prices. For those looking at popular stocks, just looking at revenue growth isn’t enough.
Morningstar believes Nvidia is 30% undervalued and keeps it in its 4-star range. Yet, investors should watch future spending commitments. Nvidia’s value depends on whether AI demand stays strong beyond the current spending wave.
Broadcom and Marvell Technology: Top Stock Picks in AI Semiconductors
Broadcom and Marvell Technology are leaders in AI semiconductors. Their success is tied to cloud spending and winning chip designs. They also rely on steady network investment.
Broadcom earnings and custom-chip customer momentum
Morningstar thinks Broadcom is worth $650 per share. They say to watch for customer retention and new wins. Also, Marvell’s deal with Google is important.
Broadcom sees a big future in AI chips, with over $100 billion in revenue by 2027. Morningstar estimates that 20 gigawatts of AI capacity could represent roughly $400 billion in additional revenue for Broadcom over two years.
Google’s move toward multiple suppliers could broaden the market for custom AI accelerators, even if Broadcom’s share of Google’s business becomes less dominant.
Marvell Technology’s data-center portfolio and growth catalysts
Marvell sells chips, interconnects, and switches for data centers. Its deal with Google makes it a stock to watch.
After earnings, Morningstar raised Marvell’s value to $300 per share. The shares were seen as 30% undervalued at the time.
| Company | Key AI Exposure | Morningstar Fair Value Estimate | Near-Term Item to Monitor |
|---|---|---|---|
| Broadcom | Custom AI chips and networking | $650 per share | Customer retention and new design wins |
| Marvell Technology | Custom chips, interconnects, and switches | $300 per share | October 6 investor day and Google ramp details |
Marvell’s investor day on October 6 might share financial goals up to 2030. It could also reveal more about the Google chip deal.
Risks to consider before acting on hot stocks to watch
Even with rising prices, there are risks. Concentration on a few customers, lower margins, and changes in AI spending can affect stocks.
When looking at trending stocks, compare them to fair value and expected cash flow. Customer exposure is also key, not just recent price gains.
Conclusion
When looking at Nvidia, Broadcom, and Marvell Technology, focus on their next earnings report, not just recent prices. Important factors include data-center revenue, custom-chip demand, customer concentration, and gross margin trends.
A stock’s low price doesn’t always mean it’s a good deal. Investors should look at the earnings multiple compared to revenue growth, cash flow, and forecast accuracy.
The rule for stock picks is simple: only consider a company if its next earnings report ties to a clear operating variable. A high earnings multiple, like 10.8 times for 2026 or 9.5 times for 2027, means little without proof the business can keep or boost those estimates.