Wall Street is in for a massively busy week in terms of quarterly earnings and economic data.
Hundreds of companies will be announcing their results, including household names led by four members of the Magnificent 7: Apple (AAPL), Microsoft (MSFT), Meta Platforms (META) and Amazon (AMZN).
Traders will also be keeping a close eye on the U.S. Bureau of Labor Statistics’ advance estimate of Q1 GDP growth on Wednesday. President Donald Trump’s sweeping trade war has led to widespread revisions in economic growth expectations, and the advance estimate will give an idea of just how much.
On the same day, the core personal consumption expenditures price index – widely seen as the Federal Reserve’s preferred inflation gauge – for March will be published.
Tariffs will continue to garner attention, with market participants keeping a close eye on any developments.
Investing Group Spotlight – AI Hardware
Tech earnings are heating up, and many high-quality AI stocks have gotten pummeled during the grizzly tech selloff. Still, we’ve seen solid numbers reported so far, and the AI demand is not going away, even if the slowdown continues.
Many high-quality stocks in the AI hardware space appear extremely attractive here. The first stock I want to highlight is Marvell (MRVL), which is an AI custom accelerator. We’ve seen excellent sales and EPS growth from this company, and the recent selloff dropped the stock from a high of $127 to just $42, and it’s still very cheap here, below or around $60.
We could see earnings hold up better than expected, and the China fallout may not be as pronounced as feared. We may also see trade deals, including with China, soon, which should be very positive for stocks like Marvell and other top performers in the AI hardware segment. The second stock I’m highlighting is AMD (AMD), which should benefit from factors similar to Marvell, but AMD can also achieve enormous success with AI in the PC. AMD is very underrated, and the stock can go much higher, in my view.
Discover more analysis from Victor Dergunov with his SA Investing Group service – The Financial Prophet.