Broadcom Could Outpace Nvidia as AI Market Shifts to Inference

Marvell Technology raised its revenue guidance at its investor day on Tuesday, forecasting that revenue driven by data centers could grow to as much as $90 billion by its fiscal year 2031. The company also lifted its total addressable market outlook by billions of dollars, and raised its revenue outlook by billions of dollars for both the balance of this year and next year, citing strong AI demand. CEO Greg Murphy, who has led Marvell since 2016, suggested the growth would continue through fiscal year 2031. Marvell is a major chip seller into the data infrastructure space, with business at Google, Amazon and Microsoft, and its stock is up more than 200% this year, though it has not yet returned to its record high. Analysts responded quickly, with roughly eight notes pushing estimates higher on Marvell.

Constellation Brands shares fell 4.9% in premarket trading after the company's fiscal second-quarter 2027 results beat on earnings and revenue but its full-year profit outlook came in below analyst expectations. The company reported adjusted earnings of $3.74 per share, above consensus estimates of roughly $3.55 to $3.61, while net sales rose 6% year over year to $2.63 billion, topping the $2.54 billion estimate, but its reaffirmed fiscal 2027 adjusted EPS guidance of $11.20 to $11.90 carried a midpoint of $11.55, below the analyst consensus of about $11.72. Beer volumes remained weak, with Modelo Especial depletions down roughly 2% and Corona Extra down about 5%, bringing total beer depletions down 0.6% for the quarter, and the company also announced the acquisition of SpikedAde, a vodka-based, zero-sugar ready-to-drink beverage brand, for $75 million upfront plus up to $278 million in contingent payments over five years. Elsewhere in premarket trading, Intel shares rose 1% to around $113.50 after Elon Musk said TSMC will not own or operate the planned Terafab AI chip complex in Texas, easing concerns Intel could lose its role in the project, while Sigma Lithium shares surged nearly 5.9% after a Brazilian Federal Court of Appeals granted emergency suspensive relief upholding its environmental licenses at the Grota do Cirilo complex in Minas Gerais. Space Exploration Technologies shares slid 1.9% after a report said the company is seeking to raise $40 billion in debt to fund a massive Nvidia AI chip order, consisting of roughly $10 billion in bank loans and $30 billion in investment-grade bonds, with Apollo Global Management expected to lead the deal and Pimco among the lenders in early discussions.

Elon Musk said his business empire will build and operate Terafab independently, quashing speculation that Taiwan Semiconductor Manufacturing Co. would run his ambitious chipmaking venture. In an X post on Wednesday, Musk clarified that the only matter under consideration with TSMC is a potential sublease of part of the planned Texas site, with no operational role involved. "Maybe TSMC subleases part of the Terafab if they want, but nothing more than that," he said, adding that his companies would "build and run the fab." Intel Corp. is helping Musk's companies develop the technology that will go inside the Terafab, which is expected to supply advanced semiconductors for Tesla's carmaking and robotics business and for the consolidated SpaceXAI, including the xAI group developing Grok. TSMC, whose key customers include Nvidia Corp. and Apple Inc., is separately weighing an expansive new chipmaking campus in Texas, Bloomberg News reported last week.

Space Exploration Technologies completed Starship Flight 14 to low Earth orbit, deploying a batch of Starlink satellites. The company is in advanced talks with TSMC on an exclusive manufacturing arrangement for custom AI-focused semiconductor chips. Starlink also signed a new Direct to Cell partnership with Beeline Kazakhstan to extend satellite connectivity to standard mobile phones. The company, a US-based telecom player with a market cap of $2.3 trillion, faces an FAA review and has less than 1 year of cash runway. The Starship flight, the TSMC chip discussions and the Beeline Direct to Cell deal only show part of the SpaceX story.