AI Stocks & Markets

Today's Stories

1. 1

   Marvell targets $18 billion FY2028 revenue, lifts outlook to $30 billion

   Marvell Technology is targeting $18 billion in FY2028 revenue, raising its combined FY2027 and FY2028 expectations from roughly $20 billion to $30 billion, per the analysis. Connectivity, switching, and storage drove most of the FY2028 forecast increase, reducing Marvell's dependence on individual custom silicon programs, the article says.

   The test is whether Marvell converts its over 20 XPU and XPU-attach design wins into FY2029 custom ASIC revenue of $10–$11 billion. Watch the 42.5x forward EV/EBITDA multiple.

2. 2

   Broadcom AI chip revenue jumps 221% to $16.7 billion

   Broadcom's fiscal Q3 2026 AI semiconductor revenue rose 221% from a year earlier to $16.7 billion, and CEO Hock Tan guided Q4 AI revenue to $21.7 billion, up 236% year over year. The stock trades at about 12 times management's fiscal 2028 earnings target, well below leading chip stocks near 25 times current-year estimates, after the shares returned only $1,070 on a $1,000 investment made on Sept. 8, 2025.

   The fiscal 2028 target of $230 billion in AI chip revenue — versus $58 billion guided for fiscal 2026 — hinges on six customers and on memory supply, which Tan said Broadcom has already secured.

3. 3

   Vertiv, Seagate crush earnings as capacity strategies split

   Vertiv posted Q2 2026 revenue of $3.27B, up 24.1% YoY, while Seagate's fiscal Q4 revenue hit $3.63B, up 48.5% YoY with non-GAAP EPS of $5.71. Seagate says nearline capacity is almost fully allocated through calendar 2027 and is growing via areal density, not new units, while Vertiv is buying UtilityInnovation Group to accelerate 'time to power'.

   Seagate's story hinges on Mozaic 4 crossover and Mozaic 5 qualification in late calendar 2027, while Vertiv must execute on complex projects after shares fell 9.63% on September 9.

4. 4

   Arista's Margins Top Ciena's $8.5 billion Backlog Bet

   Trefis weighed Ciena against Arista and called Arista ahead. Both raised revenue outlooks; Ciena's $8.5 billion backlog and Arista's roughly 43 cents of operating profit per sales dollar drove the split. Arista lifted its 2026 revenue outlook for the third time, to $12.6 billion, while Ciena trades at 95.5 times EBIT versus Arista's 51.6, so Ciena buyers are underwriting a margin plan.

   Ciena's case hinges on whether supply lets it ship its backlog, which management expects to top $10 billion by the end of fiscal 2026. Watch the 25% to 27% adjusted operating margin target for fiscal 2027.

5. 5

   Western Digital: Buy the Earnings Growth, Not Just the AI Story

   A Seeking Alpha analyst published a bullish piece on Western Digital, framing the case around earnings growth rather than the AI story alone. The analyst stresses that the investment case should rest on profit growth, not just AI-themed enthusiasm — a notable reframing of what investors should weigh.

   Whether Western Digital's earnings growth can sustain the stock's appeal independent of AI hype remains the key question the thesis hinges on.

6. 6

   SpaceX's $60 billion Cursor deal leads $80.4B AI M&A surge

   Between August 14 and September 3, 2026, three acquisitions closed or confirmed totaling $80.4 billion — SpaceX's $60 billion purchase of Cursor, Nvidia's $12.9 billion deal for Hugging Face, and Stripe's $7.5 billion purchase of OpenRouter. No major AI lab completed an IPO in that same window, inverting the usual exit path — Anthropic's roadshow has slipped to mid-October at the earliest, and OpenAI's CFO Sarah Friar told employees the company targets 2027.

   The IPO pipeline's recovery hinges on whether Anthropic completes its listing days before the November 2026 US midterm elections, as it aims to do while finalizing a $15 billion pre-IPO revolving credit facility.