Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks are higher on Tuesday, with the S & P 500 and Nasdaq on pace for record closes. For the S & P 500, it’s fourth straight session of gains. The rally came as Treasury yields slid slightly, while WTI crude remained under $90 per barrel. Every sector in the S & P 500 was positive except for healthcare, which trailed due to weakness in Moderna and companies exposed to biotechs. Utilities and industrials were toward the top of the leaderboard after Google announced a major long-term power agreement with Constellation Energy . The news sent shares of other stocks that power and electrify AI data centers higher, including GE Vernova and Eaton . Marvell Technology shares rose over 6% on Tuesday in reaction to upbeat near-term and long-term guidance at its investor day. While we don’t own Marvell in the portfolio, management’s outlook speaks positively to the trends Nvidia and Broadcom are also experiencing in compute and networking connectivity. Nvidia is up about 0.5%, tracking for back-to-back record closes, while Broadcom is jumping more than 4%, which would be its best day since late August. Marvell raised its revenue outlook for fiscal 2028 to $20 billion, up from the $18 billion guidance it gave alongside side its fiscal 2027 second-quarter results in late August. Marvell said the additional $2 billion of revenue is being driven by strong demand for its data center connectivity solutions: interconnect scale-up optics and switching. These networking products help data travel within and across server racks inside the data center. The company also sees strong growth in its custom chip business, which counts Amazon and Alphabet among its major customers. Marvell sees its custom business tripling in fiscal year 2029 from fiscal year 2028, hitting more than $12 billion. Longer term, Marvell said it expects total company revenue in the range of $70 billion and $90 billion in fiscal year 2031, well above the consensus estimate of $47 billion, according to FactSet. Supporting the path to this very bullish outlook is Marvell’s view that data center capital expenditures will reach $3 trillion by 2030, growing at about a 35% compound annual rate starting from 2025 to 2030. Notably, Marvell built some prudence into that spending guide, assuming the current rate of capex growth will moderate over the forecast period and move closer to historical levels in the out-years. Corona and Modelo brewer Constellation Brands reports after the closing bell on Tuesday. Shares of Constellation Brands , which has been helmed by CEO Nick Fink since April, are down over 16% year to date. There are no major earnings before the opening bell on Wednesday. On the data side, we’ll see the New York Federal Reserve’s one-year inflation expectations and the minutes from the Federal Open Market Committee’s September meeting. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
What Marvell’s rosy long-term guidance means for our AI chip stocks
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