The Nasdaq Composite (^IXIC +0.18%) has fallen back a bit in the past few weeks, but it still remains the big winner among major indexes so far in 2023. Moreover, there's a ton of positive sentiment about the Nasdaq's prospects for further gains.
This week, a pair of high-profile Nasdaq stocks are set to report their latest financial results. Both Nvidia (NVDA +0.87%) and Marvell Technology (MRVL +0.30%) have sought to cash in on the popularity of artificial intelligence (AI), and with AI initiatives coming out right and left, investors have high hopes that the two companies will tell a favorable story about their recent performance.
Nvidia looks for a repeat performance
Nvidia is set to report its quarterly financial results on Wednesday afternoon after the regular trading session ends on Wall Street. The chipmaker is hoping to generate the same enthusiasm that resulted in a huge jump in its stock price after its previous quarterly release back in May.
Nvidia's fiscal first-quarter financial report from the period ended April 30 caused the stock to jump 25% in a single day. Interestingly, the actual numbers that Nvidia reported weren't all that great, with revenue plunging 13% year over year and adjusted earnings falling an even steeper 20% from year-ago levels. However, what really got investors excited were a host of positive comments from CEO Jenson Huang about the huge demand from companies exploring AI initiatives that were turning to Nvidia for cutting-edge products and support.
NASDAQ: NVDA
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Now, investors have high hopes that Huang's vision for the future will become a reality. The consensus forecast among shareholders is that Nvidia will produce $11.17 billion in revenue in the fiscal second quarter that ended in July, up 67% from year-earlier levels. Similarly, adjusted earnings should top the $2-per-share mark, quadrupling the bottom-line results Nvidia put up in the fiscal second quarter last year.
It's hard to imagine what Nvidia could do for an encore after setting expectations so high in its previous financial report. Yet if it's able to exceed the ambitious guidance that it gave three months ago, the company could keep the stock on an upward trajectory for even longer.
Marvell is on the rebound
Marvell will follow Nvidia in releasing its financial report on Thursday. Unlike Nvidia, Marvell is trading well below its 2021 highs, but hopes among its shareholders are similar in that they center on the prospects for the company to capitalize on AI-related opportunities.
Expectations for Marvell aren't nearly as high as they are for Nvidia. Current consensus forecasts among investors are for the company to see earnings fall roughly 15% on a 12% drop in sales for the period ended in July. That would follow revenue declines for Marvell last quarter as well.
NASDAQ: MRVL
Key Data Points
The big question is whether Marvell will follow in Nvidia's footsteps and get AI-prompted demand. CEO Matt Murphy is optimistic about the long-term prospects for AI to help Marvell, projecting that fiscal 2024 revenue from artificial intelligence products should at least double. Yet that doubling would be from a relatively small base. It remains unclear whether other chipmakers like Marvell will be able to share in the goldmine that Nvidia has described to its own shareholders.
Some believe that Marvell has huge AI potential. If the company can't convince investors in its report this week, though, the stock could easily suffer.
