MU, AVGO, MRVL Stocks Hit 52-Week Highs Amid Hot Chip Rally

Nvidia reported $96.2B revenue, up 18% QoQ, with data center sales at $89B. Gross margin was 75%, but guidance suggests a drop to 74% due to rising memory costs. CFO Colette Kress cited increased memory procurement costs as the reason. This benefits Micron, a memory supplier, as Nvidia's higher memory commitments may lead to higher prices for suppliers.

Micron's unions are pushing for higher bonuses due to the company's record profits from the AI-driven demand for memory chips. According to reports, bonuses are capped at 200% of salary, while competitors SK Hynix and Samsung have awarded substantial bonuses. The unions may threaten a strike, potentially disrupting the global memory supply. Micron's market valuation has surpassed $1 trillion, and talks are expected to begin in mid-September.

Nvidia reported strong Q2 earnings with $96.2B revenue, driven by 117% YoY growth in data center sales. However, rising memory costs, particularly high-bandwidth memory, are reducing gross margins, which Nvidia attributes to increased component procurement costs. The company expects margins to decline further before recovering in fiscal 2028. This trend benefits memory suppliers like Micron Technology, as Nvidia's higher memory commitments suggest increased pricing power for suppliers.

Broadcom (AVGO) shares rose 1.31% in premarket trading after extending its partnership with Apple (AAPL) through 2031 for custom chip development. The stock is up from $393.78, trading above key moving averages. Analysts expect Q3 earnings of $3.16 per share and revenue of $29.44 billion, with a consensus Buy rating and average price target of $513.68.

Marvell Technology reported record Q2 2027 revenue, driven by Data Center growth and AI demand. The company raised fiscal 2028 revenue guidance to $18B, expecting 50% YoY growth. Data Center revenue is projected to grow over 60%, with custom silicon and optical interconnects as key drivers. Management highlighted a $120B revenue opportunity from a hyperscaler agreement and plans to reach 38-40% non-GAAP operating margins by Q4 2027.

Marvell reported Q2 FY27 revenue of $2.74B, up 37% Y/Y, with non-GAAP EPS of $0.94. Data Center revenue surged 46% to $2.17B, driven by AI infrastructure demand. The company raised FY27 revenue guidance to ~$12B and FY28 to $18B, citing custom silicon growth. Shares fell despite the raised outlook, trading at 50x forward earnings.