Earnings Reports Could Spark Revival in Semiconductor Stocks

NEW YORK, N.Y. — This week, three semiconductor giants are poised to announce earnings, potentially revitalizing interest in the artificial intelligence (AI) sector following a challenging period for the industry. According to Bank of America analyst Vivek Arya, Broadcom, Marvell Technology, and Credo Technology may deliver results that exceed expectations.

Arya noted, “We expect beat/raise results from AVGO, MRVL, and CRDO to re-energize interest in [artificial intelligence] semis,” in a note to clients. This optimistic outlook comes as the PHLX Semiconductor Sector Index fell 7.2% last week, mirroring a broader decline in the S&P 500.

Concerns about the semiconductor market escalated after a report indicated the Trump administration is considering tightening restrictions on China’s chip industry. The decline in semiconductor stocks was exacerbated by Nvidia’s disappointing fourth-quarter earnings, which included a drop in gross margins and a year-over-year revenue growth that was the smallest in two years.

Despite these setbacks, Arya believes that the upcoming earnings reports could mark a turning point for the sector. Broadcom, which saw its stock plunge nearly 9% last week, is set to release its first-quarter fiscal 2025 results on Thursday after the market closes. Arya anticipates that Broadcom will emphasize its substantial addressable market in custom chips and networking.

Arya wrote, “Consensus models only ~$32 billion by CY27 or < 50% SAM capture," suggesting significant growth potential remains for the company as it continues engaging with partners like OpenAI and Apple.

Marvell Technology’s earnings report is expected on Wednesday. Arya foresees potential growth driven by a telecommunications recovery, solid AI chip demand from Amazon, and an uptick in AI optics. He states, “We expect MRVL to grow with Amazon even in CY26 on continued participation in custom chip program (successor to Trn-2 called Ultra/2.5, or some design work in Trn-3).”

Credo Technology, which has felt a significant stock decline—over 21% in 2025—may also benefit from rising demand for active electrical cables used in AI clusters. Credo is expected to announce its earnings results on Tuesday after market close.

The PHLX Semiconductor Index’s decline has raised concerns among investors, but Arya remains optimistic that this volatility is normal for semiconductor stocks. He noted, “While unwelcome, volatility is common in semi stocks and does not always presage a fundamental shift.” Arya’s analysis shows the index has experienced 21 different declines of 5% or more weekly since 2021, yet cumulatively increased by 71% compared to the S&P 500’s 59% growth.

In addition to the semiconductor earnings, analysts suggest a cautious outlook concerning broader economic trends. Stifel Financial Corp. requested skepticism surrounding expectations for a robust U.S. economic rebound, particularly in manufacturing. Analyst Thomas Carroll pointed out significant obstacles that could hinder sustainable growth, despite a recent uptick in the U.S. PMI Manufacturing Index.

In summary, as semiconductor companies prepare to release their quarterly results, analysts remain hopeful these reports could spur renewed investor interest in AI technologies. The outcomes of Broadcom and Marvell’s earnings could play critical roles in shaping market dynamics in the short term.