Marvell's Earnings Test: Can This Chipmaker Revive AI Stocks?

AI stocks have been stuck in neutral lately. The VanEck Semiconductor ETF barely moved this week. Investors are unsure if the big spending on data centers will keep going. Marvell Technology reports earnings Thursday. That report could change the mood.

Joe Terranova thinks Marvell might give the AI trade a needed jolt. He works at Virtus Investment Partners. He told CNBC that Marvell can show where hyperscaler spending is headed. Hyperscalers are the giant tech firms building massive data centers. Their plans drive the whole AI boom.

Marvell shares haven't moved much either. But the company sits at the center of the action. Its chips help connect data center gear. If Marvell sees strong demand, it signals the buildout continues. If not, worries grow.

Big problems loom for the data center rush. Treasury yields jumped last week. That makes borrowing pricier for tech giants. They rely on debt to fund construction. Local communities are also pushing back against new facilities. Hardware shortages add more friction.

Terranova says the bond market is the real story. Rising yields could force hyperscalers to slow down. They need cheap debt to keep building at this pace. Marvell's outlook will hint if they can. The whole AI rally hangs on that answer.