Group 1 - Marvell Technology predicts third-quarter revenue will fall short of Wall Street expectations due to economic uncertainty and tariff concerns affecting customer spending and overall demand [2] - The company reported a revenue of $2.01 billion for the second quarter, meeting analyst expectations, but forecasts third-quarter revenue at $2.06 billion, lower than the expected $2.11 billion [3] - Marvell's data center segment, its largest business unit, saw a revenue increase of 3% to $1.49 billion, but this was below the anticipated $1.51 billion [3] Group 2 - Marvell has launched the industry's first 2nm 64 Gbps dual-direction chip-to-chip interconnect technology, aimed at enhancing bandwidth and performance while reducing power consumption and chip area [4][5] - The new 64 Gbps dual-direction D2D interface offers over 30 Tbps/mm bandwidth density, which is more than three times that of UCIe at the same speed, and can reduce chip area requirements by 15% compared to traditional implementations [5] - This technology is designed to automatically adjust device activity based on data center traffic, potentially reducing interface power consumption by up to 75% under normal workloads [5][6] Group 3 - Marvell's custom platform strategy focuses on breakthrough results through unique semiconductor design and innovative approaches, combining expertise in system and semiconductor design with advanced manufacturing processes [7] - The company aims to transform infrastructure performance, efficiency, and value by collaborating with customers to create tailored platforms [7]

Financial Data and Key Metrics Changes - Marvell reported record revenue of $2,006 million, reflecting a 6% sequential increase and a strong 58% year-over-year growth [4][25] - Non-GAAP operating margin expanded by 870 basis points year-over-year to 34.8% [4] - Non-GAAP earnings per share reached $0.67, up 123% year-over-year [4][27] - Operating cash flow was $462 million, significantly up from $333 million in the first quarter [5][27] - GAAP gross margin was 50.4%, while non-GAAP gross margin was 59.4% [25][26] Business Line Data and Key Metrics Changes - Data center revenue was $1,490 million, growing 3% sequentially and 69% year-over-year, driven by custom XPU and XPU attached products [11][25] - Enterprise networking revenue was $194 million, and carrier infrastructure revenue totaled $130 million, with combined revenue growing 2% sequentially and 43% year-over-year [19] - Consumer market revenue was $116 million, up 84% sequentially and 30% year-over-year, primarily driven by gaming demand [21] - Automotive and industrial revenue was $76 million, flat both sequentially and year-over-year [21] Market Data and Key Metrics Changes - The data center end market now accounts for 74% of total revenue, up from 34% in 2024 [32] - The total addressable market (TAM) for data centers is projected to increase to $94 billion by 2028, a 26% increase from previous estimates [8] - The company expects data center revenue to continue delivering strong growth in the mid-thirty percent range year-over-year in the third quarter [12] Company Strategy and Development Direction - The divestiture of the automotive Ethernet business for $2,500 million aligns with the strategy to focus on AI opportunities in the data center market [6][7] - Marvell aims to grow its data center market share from 13% of a $33 billion TAM in 2024 to 20% of a $94 billion TAM by 2028 [8] - The company plans to consolidate non-data center end markets into a new single communications and other end market starting in the third quarter [7][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum in the data center market, driven by AI demand [4][23] - The company anticipates overall revenue in the third quarter to be approximately $2,060 million, representing 36% year-over-year growth [22] - Management noted that the custom business is expected to see growth in the second half of the fiscal year compared to the first half [39] Other Important Information - Marvell has repurchased $540 million of stock in the first half of the fiscal year, with approximately $2 billion remaining in its authorization [5] - The company completed a public offering of notes totaling $1 billion, using most proceeds to repay existing debt [28] Q&A Session Summary Question: Guidance for the custom business and headwinds in Q3 - Management acknowledged the lumpiness in the custom business but expects a strong recovery in Q4, driven by optics business growth [37][39] Question: Clarity on design wins and revenue expectations - Management reported significant design activity and new design wins, with many opportunities in the billions of dollars [42][44] Question: Impact of supply constraints and tariffs - Management indicated tight supply chain conditions but has not seen significant impacts from tariffs [45][48] Question: Concentration among lead customers and timing of design wins - Management confirmed that initial programs are ramping and additional design wins are expected to contribute to revenue over the next 18-24 months [52][54] Question: Update on three nanometer XPU program - Management stated that initial programs are ramping and expressed confidence in growth from this program next year [106]

Financial Data and Key Metrics Changes - Marvell reported record revenue of $2,006 million, reflecting a 6% sequential increase and a strong 58% year-over-year growth [4][25][21] - Non-GAAP operating margin expanded by 870 basis points year-over-year to 34.8% [4][25] - Non-GAAP earnings per share reached $0.67, up 123% year-over-year [4][25] - Operating cash flow was $462 million, significantly up from $333 million in the first quarter [5][27] - GAAP gross margin was 50.4%, while non-GAAP gross margin was 59.4% [25][26] Business Line Data and Key Metrics Changes - Data center revenue was $1,490 million, growing 3% sequentially and 69% year-over-year, driven by custom XPU and XPU attached products [11][25] - Enterprise networking revenue was $194 million, and carrier infrastructure revenue totaled $130 million, with combined revenue growing 2% sequentially and 43% year-over-year [19] - Consumer end market revenue was $116 million, up 84% sequentially and 30% year-over-year, primarily driven by gaming demand [20] - Automotive and industrial end market revenue was $76 million, flat both sequentially and year-over-year [20] Market Data and Key Metrics Changes - The data center end market now accounts for 74% of total revenue, up from 34% in 2024 [32] - The company expects data center revenue to continue strong growth in the mid-thirty percent range year-over-year for the third quarter [12][22] - The enterprise networking and carrier infrastructure markets are expected to grow sequentially by approximately 30% in the upcoming quarter [19] Company Strategy and Development Direction - The divestiture of the automotive Ethernet business aligns with the strategy to focus on AI opportunities, redirecting investments towards data center markets [6][21] - The company aims to grow its data center market share from 13% of a $33 billion TAM in 2024 to 20% of a $94 billion TAM by 2028 [7][11] - Marvell is enhancing its leadership structure to capitalize on opportunities in AI and cloud markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum in the data center market, driven by AI demand [22][23] - The company anticipates total revenue for the third quarter to be approximately $2,060 million, representing 36% year-over-year growth [21][29] - Management noted that the custom AI design engagements are at an all-time high, with strong interest in differentiated technologies [23] Other Important Information - The company completed a $2,500 million all-cash divestiture of its automotive Ethernet business [5][28] - Marvell's cash and cash equivalents stood at $1,200 million at the end of the second quarter [28] Q&A Session Summary Question: Guidance for the custom business and headwinds in Q3 - Management acknowledged the lumpiness in the custom business but expects a strong recovery in Q4, with optics business growing double digits [36][38] Question: Clarity on design wins and revenue expectations - Management reported significant design activity and confidence in achieving a 20% market share target in the custom silicon business [42][45] Question: Impact of supply constraints and tariffs - Management indicated tight supply chain conditions but noted no significant impact from tariffs on business operations [46][49] Question: Concentration among lead customers and timing of design wins - Management confirmed that initial programs are ramping and additional design wins are expected to contribute to revenue over the next 18-24 months [52][54] Question: Update on three nanometer XPU program - Management stated that initial programs are ramping and emphasized the focus on securing incremental designs and market share [104][108]

Marvell uses a non-GAAP tax rate to compute the non-GAAP tax provision. This non-GAAP tax rate is based on Marvell's estimated annual GAAP income tax forecast, adjusted to account for items excluded from Marvell's non-GAAP income, as well as the effects of significant non-recurring and period specific tax items which vary in size and frequency, and excludes tax deductions and benefits from acquired tax loss and credit carryforwards and changes in valuation allowance on acquired deferred tax assets. Marvell' ...

Financial Performance - Marvell Technology Inc. reported quarterly earnings of 67 cents per share, exceeding the analyst estimate of 66 cents [1] - Quarterly revenue was $2.006 billion, slightly missing the Street estimate of $2.009 billion [1] - Non-GAAP gross margin for the second quarter was 59.4% [2] Year-over-Year Growth - The company achieved a record revenue of $2.006 billion in the second quarter, representing a 58% year-over-year increase [2] - CEO Matt Murphy indicated expectations for continued growth into the third quarter, along with operating margin and earnings per share expansion [2] Market Demand and Outlook - Growth is driven by strong AI demand for custom silicon and electro-optics products, as well as recovery in enterprise networking and carrier infrastructure markets [3] - For the third quarter, Marvell anticipates adjusted earnings between 69 cents and 79 cents per share, compared to the 72 cent estimate, and revenue in the range of $1.957 billion to $2.163 billion, versus the $2.105 billion analyst estimate [3] Stock Performance - Following the earnings report, Marvell Technology stock declined by 7.81%, trading at $71.20 in extended trading [4]

Second Quarter Fiscal Year 2026 Financial Results Marvell achieved record Q2 FY26 net revenue of **$2.006 billion**, driven by strong AI demand and market recovery [Q2 FY26 Financial Highlights](index=1&type=section&id=q2-fy26-financial-highlights) Marvell reported record Q2 FY26 net revenue of **$2.006 billion**, with GAAP net income of **$194.8 million** and non-GAAP net income of **$585.5 million** Q2 FY26 Key Financial Highlights | Metric | Value | | :--------------------------------- | :-------------------- | | Net Revenue | $2.006 billion | | GAAP Net Income | $194.8 million | | GAAP Diluted EPS | $0.22 | | Non-GAAP Net Income | $585.5 million | | Non-GAAP Diluted EPS | $0.67 | | Cash Flow from Operations | $461.6 million | | GAAP Gross Margin | 50.4% | | Non-GAAP Gross Margin | 59.4% | - Net revenue grew by **58%** year-on-year, reaching a new record[4](index=4&type=chunk)[7](index=7&type=chunk) [CEO Commentary on Performance and Growth Drivers](index=1&type=section&id=ceo-commentary-on-performance-and-growth-drivers) CEO Matt Murphy attributed record revenue to strong AI demand for custom silicon and electro-optics, alongside market recovery - Growth drivers include strong AI demand for custom silicon and electro-optics products[4](index=4&type=chunk) - Significant increase in recovery pace for enterprise networking and carrier infrastructure end markets[4](index=4&type=chunk) - Custom AI design activity is at an all-time high, with **over 50 new opportunities** across **more than 10 customers**[4](index=4&type=chunk) Third Quarter Fiscal Year 2026 Financial Outlook Marvell projects Q3 FY26 net revenue of **$2.060 billion** +/- 5%, with non-GAAP diluted EPS of **$0.74** +/- $0.05 [Q3 FY26 GAAP and Non-GAAP Guidance](index=1&type=section&id=q3-fy26-gaap-and-non-gaap-guidance) Marvell forecasts Q3 FY26 net revenue of **$2.060 billion** +/- 5%, non-GAAP diluted EPS of **$0.74** +/- $0.05, and non-GAAP gross margin between **59.5%** and **60.0%** - The Q3 FY26 financial outlook reflects the divestiture of Marvell's Automotive Ethernet business on August 14, 2025[7](index=7&type=chunk) Q3 FY26 Financial Outlook | Metric | Guidance | | :--------------------------------- | :-------------------- | | Net Revenue | $2.060 billion +/- 5% | | GAAP Gross Margin | 51.5% to 52.0% | | Non-GAAP Gross Margin | 59.5% to 60.0% | | GAAP Operating Expenses | ~$719 million | | Non-GAAP Operating Expenses | ~$485 million | | Basic Weighted-Average Shares | 863 million | | Diluted Weighted-Average Shares | 870 million | | GAAP Diluted Net Income Per Share | $2.03 +/- $0.05 per share | | Non-GAAP Diluted Net Income Per Share | $0.74 +/- $0.05 per share | Discussion of Non-GAAP Financial Measures Marvell uses non-GAAP measures, excluding specific non-core items, to provide supplemental financial insights despite inherent limitations [Non-GAAP Definition and Exclusions](index=2&type=section&id=non-gaap-definition-and-exclusions) Non-GAAP measures exclude specific items like stock-based compensation and amortization, applying a **10.0%** non-GAAP tax rate for Q2 FY26 - Non-GAAP measures exclude stock-based compensation, amortization of acquired intangible assets, acquisition and divestiture related costs, restructuring charges, resolution of legal matters, and certain discrete expenses/benefits[10](index=10&type=chunk) - A non-GAAP tax rate of **10.0%** was applied for the second quarter of fiscal 2026, based on estimated annual GAAP income tax forecast adjusted for non-GAAP income items and significant non-recurring tax items[11](index=11&type=chunk) [Management's Rationale and Limitations of Non-GAAP Measures](index=2&type=section&id=management-rationale-and-limitations-of-non-gaap-measures) Marvell uses non-GAAP measures for supplemental insights and internal evaluation, acknowledging their limitations compared to GAAP results - Non-GAAP measures provide supplemental information on financial and business trends, enhancing understanding of financial performance and offering greater transparency[12](index=12&type=chunk) - Internal uses include management's evaluation of operating performance, establishment of internal operating budgets, performance comparisons, and determination of certain compensation[14](index=14&type=chunk) - Limitations: Non-GAAP measures do not reflect all costs associated with operations as determined by GAAP and should not be considered in isolation or as a substitute for GAAP results[13](index=13&type=chunk) Company Overview and Legal Disclosures This section details Marvell's Q2 FY26 conference call, forward-looking statement risks, and company overview [Conference Call Details](index=2&type=section&id=conference-call-details) Marvell held a conference call on **August 28, 2025**, to discuss Q2 FY26 results, accessible via webcast and telephone - Conference call held on Thursday, **August 28, 2025**, at **1:45 p.m. Pacific Time**[9](index=9&type=chunk) - Access available via webcast on Marvell Investor Relations website or telephone[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=forward-looking-statements) Forward-looking statements are subject to various risks, including market demand and supply chain disruptions, cautioning against undue reliance - Statements are predictions about future events based on current expectations and assumptions, subject to risks and uncertainties[15](index=15&type=chunk) - Risks include ability to estimate customer demand, develop products for AI/Cloud/5G markets, dependence on a few customers, data center market concentration, customer vertical integration, international conflict, macroeconomic conditions, higher inventory levels, customer order cancellations, supply chain disruptions, and regulatory changes[15](index=15&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and the company assumes no obligation to update or revise them[15](index=15&type=chunk) [About Marvell Technology, Inc.](index=4&type=section&id=about-marvell-technology-inc) Marvell is a leader in data infrastructure semiconductor solutions, connecting the world by moving, storing, processing, and securing data - Marvell is a leader in data infrastructure semiconductor solutions[2](index=2&type=chunk)[16](index=16&type=chunk) - The company's mission is to deliver technology that connects the world by moving, storing, processing, and securing data[16](index=16&type=chunk) - Marvell emphasizes deep collaboration with customers to transform enterprise, cloud, automotive, and carrier architectures[16](index=16&type=chunk) Condensed Consolidated Financial Statements (Unaudited) This section presents Marvell's unaudited condensed consolidated statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=5&type=section&id=condensed-consolidated-statements-of-operations) For Q2 FY26, Marvell reported net revenue of **$2,006.1 million**, gross profit of **$1,010.6 million**, and net income of **$194.8 million** Condensed Consolidated Statements of Operations (Three Months Ended) | Metric (in millions, except per share) | August 2, 2025 | August 3, 2024 | YoY Change | | :----------------------------------- | :------------- | :------------- | :--------- | | Net Revenue | $2,006.1 | $1,272.9 | +57.6% | | Cost of Goods Sold | $995.5 | $685.3 | +45.3% | | Gross Profit | $1,010.6 | $587.6 | +71.9% | | Total Operating Expenses | $720.5 | $688.0 | +4.7% | | Operating Income (Loss) | $290.1 | $(100.4) | N/A (swing to profit) | | Net Income (Loss) | $194.8 | $(193.3) | N/A (swing to profit) | | Diluted Net Income (Loss) per share | $0.22 | $(0.22) | N/A (swing to profit) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=condensed-consolidated-balance-sheets) As of August 2, 2025, Marvell's total assets increased to **$20,586.3 million**, driven by current assets including **$595.5 million** in assets held for sale Condensed Consolidated Balance Sheets (as of) | Metric (in millions) | August 2, 2025 | February 1, 2025 | Change | | :--------------------------------- | :------------- | :--------------- | :----- | | Total Assets | $20,586.3 | $20,204.5 | +$381.8 | | Cash and Cash Equivalents | $1,224.4 | $948.3 | +$276.1 | | Accounts Receivable, net | $1,451.7 | $1,028.4 | +$423.3 | | Inventories | $1,051.6 | $1,029.7 | +$21.9 | | Assets Held for Sale | $595.5 | — | +$595.5 | | Total Current Assets | $4,512.9 | $3,120.3 | +$1,392.6 | | Goodwill | $11,062.2 | $11,586.9 | -$524.7 | | Total Liabilities | $7,164.6 | $6,777.5 | +$387.1 | | Total Stockholders' Equity | $13,421.7 | $13,427.0 | -$5.3 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=condensed-consolidated-statements-of-cash-flows) Net cash from operations increased to **$461.6 million** for Q2 FY26, resulting in a net increase in cash and cash equivalents of **$338.5 million** Condensed Consolidated Statements of Cash Flows (Three Months Ended) | Metric (in millions) | August 2, 2025 | August 3, 2024 | Change | | :-------------------------------- | :------------- | :------------- | :----- | | Net Cash Provided by Operating Activities | $461.6 | $306.4 | +$155.2 | | Net Cash Used in Investing Activities | $(77.2) | $(53.0) | -$24.2 | | Net Cash Used in Financing Activities | $(45.9) | $(292.4) | +$246.5 | | Net Increase (Decrease) in Cash | $338.5 | $(39.0) | +$377.5 | | Cash and Cash Equivalents at End of Period | $1,224.4 | $808.7 | +$415.7 | Reconciliations from GAAP to Non-GAAP This section provides detailed GAAP to non-GAAP reconciliations for Q2 FY26 results and Q3 FY26 outlook, highlighting excluded items [Q2 FY26 GAAP to Non-GAAP Reconciliations](index=8&type=section&id=q2-fy26-gaap-to-non-gaap-reconciliations) Marvell's Q2 FY26 non-GAAP reconciliation resulted in a non-GAAP gross profit of **$1,191.4 million** (**59.4%** margin) and non-GAAP net income of **$585.5 million** Q2 FY26 GAAP to Non-GAAP Reconciliation (Three Months Ended August 2, 2025) | Metric (in millions, except %) | GAAP | Special Items | Non-GAAP | | :----------------------------- | :----- | :------------ | :------- | | Gross Profit | $1,010.6 | $180.8 | $1,191.4 | | Gross Margin | 50.4% | 9.0% | 59.4% | | Total Operating Expenses | $720.5 | $(227.9) | $492.6 | | Operating Margin | 14.5% | 20.3% | 34.8% | | Net Income | $194.8 | $390.7 | $585.5 | | Diluted Net Income Per Share | $0.22 | $0.45 | $0.67 | - Special items excluded from GAAP to non-GAAP include stock-based compensation, amortization of acquired intangible assets, restructuring charges, and other costs[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Q3 FY26 Outlook GAAP to Non-GAAP Reconciliations](index=11&type=section&id=q3-fy26-outlook-gaap-to-non-gaap-reconciliations) Marvell's Q3 FY26 outlook reconciliation adjusts GAAP to non-GAAP, with key diluted EPS adjustments resulting in a non-GAAP diluted EPS of **$0.74** +/- $0.05 Q3 FY26 Outlook GAAP to Non-GAAP Reconciliation | Metric | GAAP Outlook | Special Items | Non-GAAP Outlook | | :--------------------------------- | :------------- | :------------ | :--------------- | | Net Revenue | $2,060 +/- 5% | — | $2,060 +/- 5% | | Gross Margin | 51.5% - 52.0% | 8.0% | 59.5% - 60.0% | | Total Operating Expenses | ~$719 | $(234) | ~$485 | | Diluted Net Income Per Share | $2.03 +/- $0.05 | $(1.29) | $0.74 +/- $0.05 | - Special items for diluted EPS include **$0.18** for stock-based compensation, **$0.26** for amortization of acquired intangible assets, **$0.02** for restructuring charges, **$(2.10)** for gain on sale of business, and **$0.35** for other income tax effects and adjustments[30](index=30&type=chunk) Quarterly Revenue Trend by End Market This section defines Marvell's five primary end markets and analyzes their revenue performance, with Data Center as the largest contributor [End Market Definitions and Applications](index=12&type=section&id=end-market-definitions-and-applications) Marvell serves five primary end markets: data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial, covering diverse applications - Marvell serves **five** large end markets: data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial[32](index=32&type=chunk) - Customer products and applications include Cloud and on-premise AI systems, ethernet switching, and storage for Data Center; Campus and small medium enterprise routers and WAPs for Enterprise Networking; Broadband access systems and optical transport for Carrier Infrastructure; Broadband gateways and gaming consoles for Consumer; and ADAS, autonomous vehicles, and in-vehicle networking for Automotive/industrial[32](index=32&type=chunk) [Revenue Performance by End Market](index=13&type=section&id=revenue-performance-by-end-market) In Q2 FY26, Data Center led revenue at **$1,490.5 million** (**74%** of total), with **69%** YoY growth, while Consumer revenue saw **84%** QoQ growth Revenue by End Market (Three Months Ended August 2, 2025) | End Market | Revenue (in millions) | % of Total | YoY Change | QoQ Change | | :-------------------- | :-------------------- | :--------- | :--------- | :--------- | | Data center | $1,490.5 | 74 % | 69 % | 3 % | | Enterprise networking | $193.6 | 10 % | 28 % | 9 % | | Carrier infrastructure | $130.1 | 6 % | 71 % | (6)% | | Consumer | $115.9 | 6 % | 30 % | 84 % | | Automotive/industrial | $76.0 | 4 % | — % | — % | | **Total Net Revenue** | **$2,006.1** | **100 %** | **58 %** | **6 %** |

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the rise of Application-Specific Integrated Circuits (ASICs) in the context of the AI chip revolution, highlighting the increasing trend of custom chip development among major tech companies [1][31]. Key Companies Mentioned - **Nvidia**: Positioned as a leader in the AI chip market, introducing a "one product per year" strategy with notable platforms like the Hopper Platform in 2022 and upcoming platforms such as Blackwell (2024) and Rubin (2026) [5][9]. - **Broadcom**: Dominates the ASIC market with key customers including Google, Meta, and OpenAI, utilizing advanced packaging technologies [48][50]. - **Marvell**: Focuses on SerDes and optical interconnects, transitioning from 224G to 448G SerDes technology, and has a strategic partnership with AWS for ASIC development [58][59]. - **AIchip**: A founding member of TSMC's OIP 3DFabric™ Alliance, competing in high-performance computing and AI accelerator markets [64]. - **Fujitsu**: Actively advancing its 2nm process deployment through the establishment of the Rapidus fab in Hokkaido, Japan [53][54]. - **SMIC**: Noted for its Ascend chip, crucial for China's AI chip development efforts [71]. Core Insights and Arguments - **Custom AI Chips**: The development of custom AI chips is essential for enhancing computing efficiency, reducing reliance on third-party suppliers, and optimizing cost structures [27]. - **Market Dynamics**: The shift towards custom AI chips is reshaping the cloud computing and AI hardware landscape, as companies seek greater performance and control over their infrastructure [33]. - **Technological Advancements**: The transition from TSMC's 3nm to 2nm process is highlighted as a critical inflection point, with increased complexity and costs associated with manufacturing [11][41]. - **Competitive Landscape**: The AI ASIC chip race is intensifying, with key players emerging from the US, Taiwan, Japan, and China, each focusing on different aspects of chip technology [75]. Important but Overlooked Content - **EUV Technology**: TSMC's mastery of EUV (Extreme Ultraviolet) lithography is crucial for advancing logic technology, impacting cost, yield, and performance [23]. - **Fujitsu's Ambition**: Japan's efforts to revive its semiconductor industry post-"lost 30 years" are underscored by its focus on AI and advanced manufacturing capabilities [54]. - **Performance Comparisons**: A comprehensive performance comparison of Huawei's Ascend 910 series against mainstream AI chips indicates the competitive landscape's complexity and the impact of export restrictions on China's chip development [76]. Future Outlook - The conference emphasizes the importance of monitoring both technological advancements and geopolitical shifts to understand the future competitive landscape in the AI chip market [72].

Summary of AI ASIC Industry Conference Call Industry Overview - The AI ASIC (Application-Specific Integrated Circuit) market is experiencing significant growth, particularly in deep learning algorithms where ASICs outperform GPUs in cost-effectiveness and performance for specific tasks. The market is expected to see substantial growth by 2027-2028, driven by advancements in chip design and services [1][2][4]. Key Companies and Developments Google - Google has been a pioneer in developing ASIC chips, launching TPU V1 in 2015 and continuously iterating on its designs. The latest TPU V7, showcased in 2023, features a 1.2T bidirectional bandwidth connection using ICI (Inter-Chip Interconnect) technology and a 3D ring topology architecture [5][6]. Amazon - Amazon's Chandler series chips, designed for AWS AI training and inference, have achieved a fourfold performance increase with the Training Two chip. The architecture employs a private protocol for inter-chip communication, forming a 2D ring network structure [7][8]. Meta - Meta has made significant strides in AI chip development, releasing the V2 chip, which transitions from a 7nm to a 5nm process. The collaboration with Broadcom has enhanced its network architecture, indicating rapid progress in self-developed ASIC technology [9][10]. Broadcom - Broadcom's AI business has grown from 5% of revenue in 2019 to 15% in 2023, with expectations to reach $60-90 billion by 2027. The company has a strong IP reserve and extensive experience in networking, which supports its ASIC product development [12]. Marvell - Marvell has emerged as a key supplier for AWS products, gradually replacing previous vendors. The company has optimized its technology and service capabilities, contributing to its market position and overall performance growth [13]. Market Trends and Insights - The AI ASIC industry is characterized by rapid advancements and increasing collaboration among major players. The demand for optical modules is expected to rise as network upgrades occur, particularly in the context of AI development [3][11]. - The overall market for AI ASICs is projected to grow from $6.6 billion in 2023 to over $60 billion by 2028, indicating a tenfold increase [24]. Domestic Market Potential - In the domestic market, companies like SMIC and Aojie Technology are positioned to benefit from the growth of AI ASIC production. SMIC is recognized for its wafer production capabilities, while Aojie has a strong IP portfolio and advanced manufacturing processes [16][17]. - The domestic AI chip sector is expected to see significant developments between 2025 and 2026, with a focus on self-developed chips and collaborations with third-party vendors [26][28]. Conclusion - The AI ASIC industry is at a pivotal stage, with intense competition driving innovation and growth. Companies are leveraging their unique strengths to capture market share, and the overall landscape is poised for substantial expansion in the coming years [18][19].

Company Overview - Marvell Technology (NASDAQ:MRVL) is set to announce its Q2 2026 earnings on August 28, 2025, with anticipated revenues of approximately $2.01 billion, reflecting a 58% year-over-year increase, and earnings predicted to be around $0.67 per share [2] - The expected growth is driven by strong demand for AI in the data center market, where Marvell's custom silicon solutions and electro-optics products are gaining significant traction [2] Financial Performance - Marvell currently has a market capitalization of $63 billion, with revenue for the last twelve months amounting to $6.5 billion [3] - The company reported operational profits of $40 million, but a net income of -$491 million [3] Earnings Analysis - Historical data shows that Marvell has had 17 earnings data points over the past five years, with 6 positive and 11 negative one-day (1D) returns, resulting in a positive return occurrence of approximately 35% [5] - This percentage declines to 25% when considering the last three years [5] - The median of the 6 positive returns is 13%, while the median of the 11 negative returns is -5.6% [5] Correlation and Trading Strategy - A lower-risk approach involves assessing the correlation between short-term and medium-term returns following earnings, with a focus on pairs that demonstrate the highest correlation [6] - If the 1D post-earnings return is positive, traders might consider positioning themselves "long" for the subsequent 5 days based on the correlation between 1D and 5D returns [6] Peer Performance Impact - The performance of peers can influence Marvell's post-earnings stock response, with pricing potentially beginning before the earnings announcement [7]

Core Insights - Marvell Technology, Inc. (MRVL) is expected to report its second-quarter fiscal 2026 results on August 28, with a focus on its AI-driven data center business growth [1][10] Data Center Business Growth - Marvell Technology has seen steady adoption of its custom AI silicon and electro-optics solutions, significantly enhancing its position in the AI infrastructure market [2][3] - The data center segment reported record revenues of $1.44 billion in the last quarter, reflecting a 76.5% year-over-year growth, driven by demand for custom AI silicon and high-performance networking chips [3][4] - For the upcoming second quarter, data center revenues are projected to reach $1.5 billion, indicating a robust 70.4% year-over-year growth [4] Custom AI Silicon and Partnerships - The company is experiencing strong traction for its AI semiconductor offerings, particularly its custom AI silicon programs, which have led to deeper collaborations with hyperscale clients [5][6] - Marvell's partnerships with cloud computing leaders like Amazon Web Services (AWS) through multi-year agreements reinforce its leadership in delivering AI-optimized silicon solutions [4] Electro-Optics and Networking Contributions - Marvell's electro-optics and high-speed networking segments are also expected to significantly contribute to second-quarter revenues, with strong order momentum for its 800-gig PAM and 400ZR interconnect solutions [7][8] - The company has been shipping 1.6T PAM DSP technology, which enhances bandwidth efficiency and reduces power consumption by 20%, making it attractive for customers [8] Financial Estimates - The Zacks Consensus Estimate for MRVL's fiscal second-quarter revenues is $2.01 billion, representing a year-over-year increase of 58%, with earnings per share expected to grow by 123.3% to 67 cents [10][12] Segmental Challenges - Marvell's industrial and consumer segments are facing inconsistent order patterns, with the industrial segment likely experiencing a decline, which offsets growth in the automotive sector [11]