Frank Lee

Nvidia reported a "clear beat and raise" with revenue up 70%+ YoY and strong forward guidance. HSBC maintains a Buy rating (Price Target $295). The stock pullback/fluctuation is due to a lack of *new* narrative (still Hyperscaler dependent) rather than fundamental weakness. Margins remain constructive despite rising memory costs. Fundamental strength remains intact; the valuation is supported by earnings growth, making it a buy on dips, though the "free ride" re-rating phase is over. Failure of enterprise demand to materialize after the hyperscaler build-out; geopolitical risks regarding China (though viewed as "optionality" only).

Marvell Technology benefits from the hyperscaler push into custom silicon (ASICs) and optical transceivers. As AI data centers demand faster networking, Marvell's position as a networking and custom chip player provides significant upside.