Marvell Technology Forecasts Strong Q2 Revenue, Driven by AI Chip Demand

Chipmaker Marvell forecasts second-quarter revenue above estimates

May 29 (Reuters) - Marvell Technology (MRVL.O), opens new tab forecast second-quarter revenue above Wall Street estimates on Thursday, betting on robust demand for custom chips powering artificial intelligence workloads in data centers. Demand for custom AI chips continues to fuel growth, while high-performance networking chips and electro-optics have also seen robust order momentum. These advancements help hyperscalers manage the exponential increase in data traffic generated by AI applications. Revenue from Marvell's data center segment, which accounts for 76% of the company's total revenue, stood at $1.44 billion in the first quarter. The company expects second-quarter revenue to be $2 billion, plus or minus 5% compared with analysts' average estimate of $1.98 billion, according to data compiled by LSEG. Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Chipmaker Marvell delivers to expectations but its stock declines after-hours - SiliconANGLE

Chipmaker Marvell delivers to expectations but its stock declines after-hours Chipmaker Marvell Technology Inc. reported earnings and revenue that just edged past analyst's expectations today, but its guidance failed to stir much excitement and its stock was headed lower in extended trading. The company reported first-quarter earnings before certain costs such as stock compensation of 62 cents per share, squeezing past Wall Street's target of 61 cents. Revenue also came out just ahead at $1.9 billion versus the analyst forecast of $1.88 billion, up 63% from a year earlier. Net profit for the quarter came to $177.9 million, a bit lower than the $200.2 million profit it recorded in the same period one year earlier. The chipmaker delivered impressive growth in its key data center business segment, with revenue there rising 76% from a year earlier to $1.44 billion, also edging past analyst's expectations. The company's four other segments, all much smaller, endured a torrid year in fiscal 2025, but things appear to be looking up as they grew their revenue by a combined 32% in the quarter, surpassing the Street's estimate. The best performer was Marvell's carrier infrastructure segment, where sales jumped 93% to $138.4 million, followed by the consumer division, up 50% to $63.1 million, and enterprise networking, which rose 16% from a year earlier to $177.5 million. The only segment that declined was Marvell's automotive and industrial business, where sales fell 2% to $75.7 million. For the current quarter, Marvell is guiding for revenue of exactly $2 billion at the midpoint of its guidance range, just ahead of the Street's forecast for $1.99 billion. Marvell Chief Executive Matt Murphy (pictured) hailed the company's performance, saying it delivered "record revenue" and is expecting to see continued strong growth in the current quarter. "This momentum is being fueled by strong AI demand in the data-center end market, where our revenue is benefiting from the rapid scaling of our custom silicon programs and robust shipments of our electro-optics products," Murphy said. "We see our custom silicon business driving strong growth in the second quarter and beyond. " Marvell's custom silicon business involves making customized data center chips to order for hyperscale data center operators such as Amazon Web Services Inc. The company makes a ton of cash by helping AWS to design and manufacture its "Trainium" chips for artificial intelligence workloads, and is also believed to be working with the likes of Google Cloud and Microsoft Corp. too, though it hasn't said so publicly. The AWS Trainium chips compete with Nvidia Corp.'s graphics processing units, which are the most popular silicon for running AI workloads today. The success of Marvell's data center business has become critical to its fortunes, as the segment accounted for 72% of the chipmaker's total revenue in fiscal 2025, up from 41% in the previous year. Despite the impressive data center growth, Marvell's stock has had a rough ride this year, and they fell more than 3% in after-hours trading today. That means it's down 42% in the year to date.

Marvell forecasts second-quarter revenue above estimates on strong demand for custom AI chips

Marvell said in its post-earnings call that it expects AI tailwinds to remain strong, driven by robust hyperscaler spending, new sovereign data center projects, and the expansion of emerging market players expanding the market, opening up growth opportunities. The company's carrier and enterprise networking segments have also gradually recovered following a period of inventory correction.Marvell Technology forecast second-quarter revenue above Wall Street estimates on Thursday, betting on strong demand for its custom chips powering artificial intelligence workloads in data centers. Demand for custom AI chips continues to fuel growth, while networking chips and electro-optics have also seen robust order momentum. These advancements help hyperscalers seeking to scale their infrastructure to support AI workloads. Marvell said in its post-earnings call that it expects AI tailwinds to remain strong, driven by robust hyperscaler spending, new sovereign data center projects, and the expansion of emerging market players expanding the market, opening up growth opportunities. Revenue from Marvell's data center segment, which accounts for 76% of the company's total revenue, stood at $1.44 billion in the first quarter. The company's carrier and enterprise networking segments have also gradually recovered following a period of inventory correction. "We believe the custom silicon business will be the primary growth driver over the next 3-5 years, contributing positively to operating profits despite lower gross margins," said Angelo Zino, analyst at CFRA Research. Zino added that the upcoming custom silicon webinar on June 17 could serve as a catalyst by potentially showcasing TAM expansion opportunities and new customer wins in CY26. However, the consumer end market remained weak for the company, with revenue falling 29% sequentially to $63.1 million due to seasonality in gaming demand. The industrial segment also struggled, reporting a 12% sequential decline in revenue. Shares of the company fell about 2% in extended trading. The company expects second-quarter revenue to be $2 billion, plus or minus 5% compared with analysts' average estimate of $1.98 billion, according to data compiled by LSEG. In May, Marvell said it was postponing its previously scheduled investor day conference due to a "dynamic macroeconomic environment." It reported revenue of $1.9 billion for the quarter ended May 3, compared to analysts' average estimate of $1.88 billion.

Marvell Analysts Back Steady Outlook, Point To AI Momentum - Amazon.com (NASDAQ:AMZN), Marvell Tech (NASDAQ:MRVL)

Shares of Marvell Technology Inc. MRVL tanked in early Friday trading despite the company's upbeat earnings report for the first quarter on Thursday. The announcement came amid an exciting earnings season. Here are some key analyst takeaways. Piper Sandler On Marvell Technology Analyst Harsh Kumar maintained an Overweight rating, while reducing the price target from $95 to $85. Marvell Technology reported revenues of $1.895 billion and earnings of 62 cents per share, higher than consensus estimates of $1.877 billion and 61 cents per share, respectively, Kumar said in a note. Management guided to revenues of $2.0 billion and earnings of 67 cents per share for the second quarter, broadly in-line with expectations, he added. "The company continues to expect AI to be the majority of their revenue profile going forward and continue to grow as a proportion of the business," the analyst further wrote. KeyBanc Capital Markets On Marvell Technology Analyst John Vinh reiterated an Overweight rating, while cutting the price target from $115 to $90. Marvell Technology reported its quarterly results and guidance broadly in line with expectations, Vinh said. Management reiterated that revenue from Amazon.com Inc's AMZN AWS-related custom AI XPUs is expected to grow in fiscal 2026 and 2027, he added. The company also said that its design win with Microsoft Corp MSFT on Maia 200 "continues to progress, with ongoing collaboration on the architecture for the next-generation Maia 300," the analyst further wrote. Check out other analyst stock ratings. Cantor Fitzgerald On Marvell Technology Analyst Quinn Bolton reaffirmed a Buy rating, while lowering the price target from $100 to $85. Marvell Technology reported a beat and raise quarter, driven by continued growth in Data Center revenues, Bolton said. "Management seems very confident in the company's opportunity at AMZN, and has secured 3nm wafer and advanced packaging capacity for the next generation design set to ramp in 2026," the analyst wrote. He said revenue is likely to grow sequentially through fiscal 2026, "led by Data Center and as CI and EN continue to recover." Benchmark On Marvell Technology Analyst Cody Acree maintained a Buy rating and price target of $95. Marvell Technology's stock came under pressure following the release of first-quarter results, as investors were "not particularly thrilled by the firm's relatively modest upside results and guidance," especially after the outperformance delivered by rival Nvidia Corp NVDA, Acree said. Both Marvell Technology and Nvidia witnessed demand for AI driving robust Data Center growth, the analyst stated. He added, however, that Marvell Technology did not provide "any specifics of its quarterly AI results." MRVL Price Action: Shares of Marvell Technology had declined by 6.79% to $59.40 at the time of publication on Friday. Read More: Marvell Technology Data Center Business Triples Over 2 Years As Custom Silicon And Optics Fuel Surge: 'Expect This Momentum To Continue' Photo: JHVEPhoto / Shutterstock.com AMZNAmazon.com Inc$204.00-0.83%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum70.29Growth97.11Quality68.14Value50.17Price TrendShortMediumLongOverviewMRVLMarvell Technology Inc$59.35-6.87%MSFTMicrosoft Corp$458.940.06%NVDANVIDIA Corp$134.55-3.33%Market News and Data brought to you by Benzinga APIs

Marvell Technology Stock Slips After Q1 Results: Details - Marvell Tech (NASDAQ:MRVL)

Marvell Technology, Inc. MRVL released its first-quarter results after Thursday's closing bell. Here's a look at the key figures from the report. The Details: Marvell reported quarterly adjusted earnings of 62 cents per share, which beat the Street estimate of 61 cents. Quarterly revenue came in at $1.9 billion, which beat the consensus estimate of $1.88 billion. Read Next: Can Michael Burry's Nvidia Short Survive The Stock's Stunning Comeback? Marvell will host a Custom AI Investor Event, streamed live on June 17, 2025, beginning at 1 p.m. ET. The event will feature presentations from the CEO, members of the executive team and a cross-section of Marvell's engineering leaders and will highlight advances in Marvell's technology platform. "Marvell delivered record revenue in the first quarter of $1.895 billion, a 63% year-over-year increase, and we are forecasting continued strong growth into the second quarter," said Matt Murphy, Marvell's CEO. "This momentum is being fueled by strong AI demand in the data center end market, where our revenue is benefiting from the rapid scaling of our custom silicon programs and robust shipments of our electro-optics products," Murphy added. Outlook: Marvell sees second-quarter net revenue of $2 billion, plus or minus 5%, and non-GAAP EPS of 67 cents, plus or minus five cents. MRVL Price Action: According to data from Benzinga Pro, Marvell Technology stock was down 3.17% at $61.71 in Thursday's extended trading. Read Next: e.l.f. Beauty Buys Hailey Bieber's Brand Rhode For $1 Billion: Now She's Richer Than Husband Justin Bieber Photo: Shutterstock MRVLMarvell Technology Inc$61.68-4.50%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum22.41Growth17.46QualityNot AvailableValue16.38Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Marvell Technology Data Center Business Triples Over 2 Years As Custom Silicon And Optics Fuel Surge: 'Expect This Momentum To Continue' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Marvell Tech (NASDAQ:MRVL)

Marvell Technology Inc.'s MRVL data center revenue tripled over the last two years, hitting a record in the first quarter of the current fiscal year. The company's management expects the momentum to continue going ahead. What Happened: During the first quarter, the company posted a record data center revenue of $1.44 billion, which was up 5% sequentially and 76% year-over-year. "Looking ahead to the second quarter, we expect this momentum to continue with data center revenue projected to grow sequentially in the mid-single-digit range on a percentage basis, while maintaining strong year-over-year growth," said the chairman and CEO, Matt Murphy, during the earnings call. Murphy explained that the surge in data center revenue was led by the shipment of its custom silicon and electro-optics products. "These strong results along with our second quarter guidance are being driven by the rapid scaling of our custom AI silicon programs to high volume production, along with robust shipments of our electro-optics products for AI and cloud applications," he added. Marvell's data center revenue has tripled since 2023, as per the data highlighted by the AI-driven fundamental research platform, FinChat. See Also: Stock Market Is Pricing A Never-Before-Seen 'Divergence' As Equities And Bonds 'Run It Hot' Amid Gloomy Outlook By Bottom-Up Analysts Why It Matters: Marvell's first quarter revenue stood at $1.9 billion, beating the consensus estimate of $1.88 billion. The company also posted better-than-expected earnings of 62 cents per share, above the street estimate of 61 cents. Marvell sees second-quarter net revenue of $2 billion, plus or minus 5%, and non-GAAP EPS of 67 cents, plus or minus five cents. However, the shares of the company fell despite good earnings; it ended 1.33% lower on Thursday and slipped 3.28% in after-hours. The stock was down 43.88% in 2025 and 17.07% over the whole year. Benzinga Edge Stock Rankings shows that MRVL had a stronger price trend over the short term but a weaker trend over the medium and long term. Its momentum ranking was poor, and its value ranking was also weak at the 16.38th percentile. The details of other metrics are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Thursday. The SPY was up 0.39% to $590.05, while the QQQ advanced 0.20% to $519.93, according to Benzinga Pro data. Read Next: Trump's Tariff Refund Could Cost US $10 Billion With 2% Month-End Rebalance Impact On Equities In Case Of An Appeal: 'Uncertainty Is Back Front And Center' Photo courtesy: JHVEPhoto / Shutterstock.com MRVLMarvell Technology Inc$61.64-4.57%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum22.41Growth17.46QualityNot AvailableValue16.38Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$517.65-0.24%SPYSPDR S&P 500$588.100.06%Market News and Data brought to you by Benzinga APIs

Marvell forecasts $2B Q2 revenue amid accelerating AI-driven data center momentum and custom silicon growth (NASDAQ:MRVL)

CEO Matt Murphy highlighted record revenue of $1.895 billion for Q1 2026, noting a 4% sequential increase and 63% year-over-year growth, stating, "Data center end market continued to deliver strong growth, driven by robust AI demand." Murphy Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

Cantor maintains Marvell stock Neutral with $60 price target By Investing.com

Friday, Cantor Fitzgerald reiterated a Neutral rating and a $60.00 price target on Marvell Technology Group Ltd . (NASDAQ:MRVL). According to InvestingPro data, the stock currently trades at an EV/EBITDA multiple of 33.4x, reflecting high growth expectations. While analyst targets range from $60 to $133, the company maintains a moderate debt level with a debt-to-equity ratio of 0.3. The semiconductor company reported earnings that slightly exceeded consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62, compared to the consensus of $1.88 billion and $0.61 EPS. The company also provided guidance above expectations, forecasting $2.0 billion in revenue and $0.67 EPS versus the anticipated $1.98 billion and $0.66 EPS. This aligns with InvestingPro analysis, which indicates strong revenue growth potential with a 42% forecast for FY2026 and a five-year revenue CAGR of 16%. Marvell's earnings call focused on its AI Custom Silicon business, where management expressed confidence in their current positioning with Amazon (NASDAQ:AMZN)'s Trainium 2 and Maia 200, as well as for future products. They indicated that Marvell has secured wafer/application processor capacity for Amazon's next-generation 3-nanometer technology, expected to ramp up in 2026. Additionally, management anticipated revenue growth from Amazon in calendar years 2026 and 2027. However, concerns were raised about the potential for customers to explore multiple suppliers due to high demand from large cloud service providers, which could affect the volume of ASICs that investors might expect Marvell to produce in 2026 and beyond. This uncertainty, along with the possibility of increased competition affecting gross margins, was noted as a factor that could continue to impact investor sentiment. Despite these concerns, Cantor Fitzgerald acknowledged Marvell's leadership in Optics, Co-Packaged Optics (CPO), High Bandwidth (NASDAQ:BAND) Memory (HBM), and application processors, which are expected to be integral in next-generation devices. The firm expressed ongoing concerns about the long-term viability of Marvell's Custom Silicon business. Investors and analysts are looking forward to the Custom AI investor event scheduled for June 17th, where Marvell's management is expected to provide more details and insights into the future of the company's AI Custom Silicon segment and its potential for sustained growth. For deeper insights into Marvell's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed valuation metrics in our exclusive Pro Research Report, part of our coverage of over 1,400 US stocks. In other recent news, Marvell Technology Group Ltd. has garnered attention following its latest financial results and strategic developments. Oppenheimer analyst Rick Shafer reiterated an Outperform rating with a $95 price target, highlighting Marvell's partnership with Amazon Web Services and the anticipated growth of its AI sector, which now accounts for a significant portion of its revenue. Barclays (LON:BARC) maintained its Overweight rating with an $80 target, noting Marvell's advancements in 3nm technology and its collaboration with Microsoft (NASDAQ:MSFT) on next-generation processors. Meanwhile, BofA Securities confirmed a Buy rating with a $72 target, emphasizing Marvell's robust project pipeline, including a notable 3nm custom chip program with Amazon set for 2026. Wolfe Research adjusted its outlook, lowering the price target to $90 from $115, while maintaining an Outperform rating. The firm expressed concerns about potential revenue impacts from a parallel project involving Amazon and Alchip but remains optimistic about Marvell's AI business. Barclays and BofA Securities both highlighted Marvell's strategic share repurchase plans, bolstered by the anticipated sale of its automotive division. Analysts are particularly focused on Marvell's custom silicon initiatives, with an upcoming event in June 2025 expected to provide further insights into the company's strategies and growth prospects. These developments reflect Marvell's ongoing efforts to strengthen its position in the semiconductor industry, particularly in AI and ASIC markets.

Barclays maintains Overweight rating on Marvell stock at $80 target By Investing.com

On Friday, Barclays (LON:BARC) reiterated its Overweight rating on Marvell Technology Group Ltd . (NASDAQ:MRVL) with a steady price target of $80.00. According to InvestingPro data, the stock, currently trading at $63.73, has shown significant volatility with a beta of 1.82. While the stock has declined over 31% in the past six months, analysts maintain a bullish consensus with price targets ranging from $60 to $135. The endorsement comes as the semiconductor company mentioned a key development in its technology, specifically its work with 3nm process technology, in collaboration with Amazon (NASDAQ:AMZN). The company has also indicated that it has secured wafer capacity this quarter and is open to multi-sourcing to support its production needs. With revenue of $5.77 billion in the last twelve months and a growth rate of 4.71%, Marvell operates with a moderate level of debt, maintaining a healthy current ratio of 1.54. Marvell's engagement with Microsoft (NASDAQ:MSFT) was highlighted as progressing well, with ongoing work on the next generation of XPU, a type of computing unit. However, there are some concerns in the optical sector, where Marvell may be experiencing lighter demand in July, potentially due to increased competition in the digital signal processor (DSP) market compared to the previous year. Barclays analyst noted the company's strategy of repurchasing its shares, which is expected to be bolstered by the anticipated sale of its automotive division later in the year. While there is some caution around the company's ASIC (application-specific integrated circuit) business due to uncertainties in market share dynamics, the analyst believes the current risk-reward balance is favorable, considering Marvell's stock price around $60. The report from Barclays underscores the company's strategic moves in securing advanced technology and production capabilities, as well as its financial strategies to enhance shareholder value. Marvell's collaborations with major tech companies such as Amazon and Microsoft are key factors in its growth trajectory, according to the analyst's comments. For a deeper understanding of Marvell's potential, InvestingPro offers an extensive analysis with 12 additional investment tips and a comprehensive Pro Research Report, available as part of the subscription, which provides detailed insights into the company's valuation and growth prospects. In other recent news, Marvell Technology Group Ltd. has been the subject of multiple analyst reports, highlighting key developments and financial projections. BofA Securities maintained a Buy rating with a $72 price target, emphasizing Marvell's involvement in significant projects, including a 3nm custom chip program with Amazon, projected for commercialization in 2026. Wolfe Research adjusted its price target for Marvell to $90 from $115, maintaining an Outperform rating, while noting potential impacts on revenue from a parallel project involving Alchip and Amazon's internal design team. KeyBanc Capital Markets also set a $90 price target, acknowledging Marvell's 76% year-over-year growth in its Data Center business and reaffirming expected revenue growth in its custom AI ASIC segment at AWS. Evercore ISI slightly reduced its price target to $133, maintaining an Outperform rating and highlighting Marvell's strong EPS growth prospects and low PE multiple compared to peers. Raymond (NSE:RYMD) James lowered its price target to $90, while keeping an Outperform rating, citing Marvell's ongoing projects with AWS and Microsoft and strong performance in the optical segment. These recent developments reflect a mix of optimism and caution among analysts, as Marvell continues to engage in strategic projects and navigate competitive pressures in the semiconductor industry.

Morgan Stanley lifts Marvell stock price target to $73 By Investing.com

On Friday, Morgan Stanley (NYSE:MS) maintained an Equalweight rating on Marvell Technology Group Ltd . (NASDAQ:MRVL) and increased its price target from $70.00 to $73.00. The research firm's analyst cited a positive outlook for the company's long-term performance despite recent underwhelming results. The adjustment in the price target reflects a slightly higher modelled earnings per share (EPS) for the upcoming years. According to InvestingPro data, Marvell's stock has experienced significant volatility, with a 31% decline over the past six months, though analysts maintain a bullish consensus with price targets ranging from $60 to $135. Marvell has faced challenges with expectations this year, including the recent quarter's performance. However, the analyst noted that the issues surrounding the Trainium 2 expectations have been resolved. Looking ahead, the sequential progression of the company's financials is anticipated to be strong, with InvestingPro forecasting 42% revenue growth for the upcoming fiscal year. Marvell is considered to be a long-term winner in the AI sector, with particular emphasis on the optical segment over the ASIC portion due to its higher defensibility and margin. The company maintains a healthy current ratio of 1.54 and operates with a moderate debt level. An opportunity for Marvell's stock to rebound is foreseen around its upcoming AI event, which has been restructured from an analyst day to a webinar focused on AI ASIC opportunities. This event is expected to address investor concerns, which have grown more cynical recently. The analyst expects the company's financial figures to be satisfactory. Morgan Stanley's revised price target is based on a multiple of 32 times the calendar year 2026 modelled EPS of $2.28, which includes stock-based compensation. This represents about 23 times the non-GAAP EPS. The firm's valuation multiple remains unchanged, but the modelled EPS has been increased from $2.20 to $2.28. With a market capitalization of $55 billion and trading slightly below its Fair Value according to InvestingPro analysis, Marvell presents an interesting opportunity for investors seeking exposure to the AI sector. For deeper insights into Marvell's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The analyst highlighted a preference for other companies in the AI space, such as Nvidia (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), and Analog Labs (ALAB), but still recognizes Marvell's potential. The updated price target is a reflection of the firm's confidence in Marvell's ability to navigate its current challenges and capitalize on future growth opportunities. In other recent news, Marvell Technology Inc. reported its first-quarter financial results for fiscal year 2026, exceeding both earnings and revenue projections. The company recorded earnings per share of $0.62, slightly above the anticipated $0.61, and generated revenue of $1.9 billion, surpassing the expected $1.88 billion. Marvell's revenue grew by 63% year-over-year, bolstered by strong demand in the AI and data center markets. Additionally, Marvell announced a significant transaction involving the sale of its Automotive Ethernet business to Infineon (OTC:IFNNY) for $2.5 billion in cash, expected to close within 2025. The company also partnered with NVIDIA and launched new technologies, further expanding its strategic initiatives. Analysts noted Marvell's optimistic guidance for the second quarter, projecting revenue of $2 billion. Despite these positive developments, Marvell's stock experienced a decline in after-hours trading, attributed to broader market trends and investor concerns about future growth.