Despite a downturn in the summer, the technology industry – especially the semiconductor chip sector – is recovering. And what is important for investors: semiconductor stocks are quickly returning to their top position.

The reasons for this are obvious. Chip technology is the cornerstone of artificial intelligence and AI is driving the increasing digitization of our global economy. The growth of AI is leading to increasing demand for high-performance computers, data center servers and the high-performance chips that enable them.

The key here lies in graphics processors, which are quickly becoming ubiquitous in cutting-edge technology. Originally designed for high-quality graphics for high-end gaming, these chips quickly found acceptance among professional graphic designers and were then adopted by data centers and AI developers. The bottom line: they can meet the high computing demands in all of these areas.

Rosenblatt’s Hans Mosesmann, a top analyst who ranks No. 5 among thousands of Wall Street stock experts, has named both Nvidia (NASDAQ: NVDA) and Marvell (NASDAQ: MRVL) as AI stocks to watch before their earnings releases this week. Both companies are industry leaders in chip innovation and will play a crucial role in the future. Let’s take a closer look.

NVIDIA

We’ll start with the leader of the chip world, Nvidia. This semiconductor giant arguably started the current revolution in chip technology with its development of the GPU in 1999. In recent years, Nvidia has benefited enormously from the growth of AI and related technology sectors and today provides about 90% of the GPUs used in generative AI applications. Its success has catapulted the company into the top league of Wall Street mega-caps; Nvidia now has a market capitalization of about $3.11 trillion, making it one of only three companies with over $3 trillion in public trading markets.

This strong growth coincided with a massive increase in the stock price to over $1,100 earlier this year, and Nvidia responded with a 10-for-1 stock split in June. Overall, Nvidia shares are up an impressive 155% year-to-date.

Looking ahead, investors recently raised some concerns about Nvidia when the company announced that its new B200 Blackwell series chips would experience three-month delivery delays. The company has stated that it remains on track to maintain production of the product line, but that shipments will not occur until early 2025. This announcement could impact key AI-related customers, such as tech giant Microsoft, which has already placed large pre-orders for the new chips. While this was a concern, analysts noted that Nvidia’s current chip lines, including the popular Hopper series, continue to see strong sales.

More importantly, the delay in Blackwell shipments is not expected to seriously impact Nvidia’s ability to generate revenue. In its most recent quarter, Q1 2025, the company reported revenue of $26 billion, beating forecasts by $1.45 billion and representing a staggering 262% increase year over year. Nvidia also posted strong earnings of $6.12 per share, which works out to 61 cents after accounting for the split — 5 cents better than expected.

Nvidia will report its second-quarter 2025 results on Wednesday, August 28. Analysts expect the company to report revenue of $28.7 billion and non-GAAP earnings of 64 cents per share. Hitting that revenue mark would represent year-over-year revenue growth of 113%.

Rosenblatt’s top analyst Mosesmann remains bullish on Nvidia despite the Blackwell delay, expecting the company to beat expectations again, stating: “We expect Nvidia to beat and even improve on its July quarter and October quarter guidance, with the wild card being the company’s Hopper platform limitations… A potential delay of a few months in Blackwell next year should have limited impact on Nvidia in what appears to be a significantly constrained environment. Interestingly, we believe we are seeing a mid-cycle ‘kick’ for Hopper as hyperscalers move to liquid-cooled rack-scale implementations due to ‘densification’ efforts by players like Supermicro. We do not share the notion of an air hole between Hopper and Blackwell as was feared this summer.”

Mosesmann quantifies his stance, rating NVDA shares a Buy with a $200 price target, implying a one-year upside of ~55%. (To watch Mosesmann’s track record, click here)

Overall, Nvidia receives a consensus rating of Strong Buy from Wall Street, based on 35 recent analyst ratings, which break down into 32 buy recommendations and 3 hold recommendations. Shares are currently trading for $126.46, and their average price target of $149.89 suggests NVDA will gain 18.5% over the next 12 months. (See Nvidia stock forecast)

Marvell

Next is Marvell, a semiconductor company that has carved out a strong position in the data processing unit space and has carved out a solid niche for itself by offering chips for a wide range of AI and industrial applications. The company’s products are widely used in data centers and storage accelerators, making them a popular choice among network operators, wireless carriers, automakers, and cloud software providers.

Marvell is known as an innovator in the industry, with a history of consistently breaking new ground based on expertise and experience. The company can take pride in the fact that its chipsets have played a major role in recent AI advances and are becoming increasingly important in the autonomous vehicle space. The key factor here is the high capacity of the company’s chips, making them suitable for AI applications, accelerated computing and other high-end applications.

In its first quarter 2025 earnings report, Marvell met forecasts. Both revenue (quarterly revenue of $1.16 billion) and earnings (non-GAAP earnings per share of 24 cents) were in line with expectations. It is worth noting that the company’s revenue declined 12% year over year.

For the upcoming Q2 2025 release, analysts expect Marvell to report revenue of $1.25 billion, down 6.7% year over year but up 7.7% quarter over quarter. Second quarter earnings are expected to be 24 cents per share. On August 29, we will find out how the actual results compare to expectations.

Meanwhile, Hans Mosesmann already expects Marvell to do well with the upcoming release. He believes the company has better days ahead and explains why he is bullish on the stock: “We expect Marvell to slightly beat and increase expectations in the July quarter in the segments that remain AI-centric, including ASICs, electro-optics and network switches. We see the on-premise business stabilizing, with weakness in communications infrastructure continuing throughout the calendar year. Management should reiterate that AI revenues will exceed $1.5 billion and $2.5 billion in fiscal 2025/2026, respectively, and also show confidence in the longer-term AI market share of 20% in a TAM of $40 billion by 2028 from the recent 10%.”

“Marvell has reached a cyclical low, and the trajectory of the company’s AI business shows a long-term turnaround. This is particularly significant in areas where Marvell has unique and defensible expertise,” the analyst added.

Mosesmann continues to recommend MRVL as a buy and sets a price target of $100 on the stock, meaning he expects a 45% gain within the next year.

Marvell generally receives a Strong Buy rating from Wall Street, as the 25 most recent analyst reviews include 24 Buy recommendations and just 1 Hold recommendation. The stock currently trades at $68.82, but has an average price target of $91.83, suggesting upside potential of nearly 33% over the next year. (See Marvell Stock Forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important that you conduct your own analysis before investing.