Core Viewpoint - Marvell Technology (MRVL.US) experienced a significant drop of over 16% in its stock price, closing at $64.65, due to disappointing earnings guidance that fell short of investor expectations [1] Financial Performance - For Q2, Marvell reported a revenue increase of 58% year-over-year, reaching $2.01 billion, which only met analyst expectations [1] - The data center business revenue grew by 69% year-over-year to $1.49 billion, slightly below the analyst average expectation of $1.51 billion [1] - Adjusted earnings per share were $0.67, also aligning with analyst expectations [1] Earnings Guidance - The company provided a Q3 revenue guidance midpoint of $2.06 billion, which is below the analyst average expectation of $2.11 billion [1] - Analyst Kinngai Chan from Summit Insights indicated that the weak Q3 guidance suggests a decline in Marvell's custom ASIC business, which surprised investors [1]

但更令投资者失望的是迈威尔科技给出的业绩指引。该公司给出的第三季度营收指引中值为20.6亿美 元，不及分析师平均预期的21.1亿美元。Summit Insights分析师Kinngai Chan表示，迈威尔科技对第三季 度的疲弱业绩指引意味着其定制ASIC业务将出现下滑，这令投资者感到意外。 智通财经APP获悉，周五，迈威尔科技(MRVL.US)开盘大跌超16%，报64.65美元。消息面上，该公司公 布的业绩指引不及预期令投资者感到失望。财报显示，Q2营收同比增长58%至20.1亿美元，仅符合分析 师预期。其中，数据中心业务营收同比增长69%至14.9亿美元，不及分析师平均预期的15.1亿美元。调 整后每股收益为0.67美元，同样仅符合分析师预期。在如今人工智能(AI)热潮驱动的市场中，仅仅"符合 预期"已然无法令投资者感到满意。 ...

Core Viewpoint - Marvell Technology's latest quarterly earnings report and guidance have disappointed Wall Street, raising concerns about the company's prospects in the AI spending boom [1] Group 1: Analyst Ratings and Price Targets - Bank of America analyst Vivek Arya downgraded Marvell's rating from "Buy" to "Neutral" and reduced the price target from $90 to $78 due to rising uncertainties regarding AI growth prospects [1] - Needham analyst N. Quinn Bolton also lowered the price target, expressing a lack of optimism about the company's future, particularly concerning next-generation chip business with Amazon and Microsoft [1] Group 2: Growth Projections and Market Concerns - Arya noted two main uncertainties: delays in the Maia project with Microsoft, potentially pushing timelines from FY2027 to FY2028, and Marvell's share in Amazon's next-generation 3nm chip project [1] - The expected year-over-year growth rate for Marvell's data center business in calendar year 2026 has been revised down from 23%-25% to mid-teens levels [1] - Bolton indicated that while custom chip business is expected to grow in the second half of FY2026 compared to the first half, a significant decline of approximately 15% is anticipated in Q3 FY2026, followed by a strong rebound in Q4 [2]

Group 1 - U.S. stock futures are lower, with Dow futures falling over 100 points [1] - Marvell Technology, Inc. reported quarterly earnings of 67 cents per share, beating the analyst estimate of 66 cents, but quarterly revenue of $2.006 billion missed the Street estimate of $2.009 billion [1] - Marvell's third-quarter sales guidance has a midpoint below estimates, leading to a sharp decline in its shares by 14.7% to $65.87 in pre-market trading [2] Group 2 - Other stocks experiencing declines in pre-market trading include TryHard Holdings Limited, which fell 10.3% to $5.38 after a 50% increase the previous day [4] - Dell Technologies Inc. reported stronger-than-expected second-quarter earnings and expects third-quarter revenue between $26.5 billion and $27.5 billion, exceeding estimates of $26.05 billion, but anticipates adjusted earnings of $2.45 per share, below the $2.55 estimate [4] - NatWest Group plc and Lloyds Banking Group plc also saw declines of 5.5% to $13.81 and 4.4% to $4.27, respectively, in pre-market trading [4]

Investment Rating - The report provides a positive outlook for the company, indicating an "Outperform" rating based on expected growth in revenue and market share [34]. Core Insights - The company reported Q2 FY2026 revenue of $2.006 billion, a 6% increase quarter-over-quarter and a 58% increase year-over-year, with a non-GAAP operating margin of 34.8% [10][11]. - The automotive Ethernet business was divested for $2.5 billion in cash, completed ahead of schedule, which is seen as an attractive valuation [2][11]. - Data center revenue reached $1.49 billion in Q2, accounting for 74% of total revenue, driven primarily by AI and cloud businesses [12][13]. - The company aims to increase its data center market share from 13% of a $33 billion total addressable market (TAM) in 2024 to 20% of a $94 billion TAM by 2028 [13][14]. - The custom silicon product portfolio is expected to generate significant revenue, with a projected lifetime revenue potential of $75 billion from design orders [14][15]. - Q3 FY2026 revenue guidance is set at $2.06 billion, reflecting a 36% year-over-year increase, with non-GAAP gross margins expected between 59.5% and 60% [24][25]. Financial Performance Overview - Q2 FY2026 core financial data shows a substantial year-over-year revenue increase of 58%, with operating cash flow rising to $462 million from $333 million in the previous quarter [10][11]. - The company has repurchased $540 million worth of shares in the first half of the fiscal year, with $2 billion remaining in repurchase authorization [11]. Data Center Market Performance - Data center revenue grew 69% year-over-year in Q2, with AI and cloud businesses contributing over 90% of this revenue [12][15]. - The company expects data center revenue to grow approximately 30% year-over-year in Q3, although overall revenue is expected to remain flat quarter-over-quarter [15]. Non-Data Center Market Performance - The enterprise networking and carrier infrastructure segment saw a 43% year-over-year revenue increase in Q2, with an expected annualized revenue run rate of $1.7 billion in Q3 [16]. - The consumer market reported Q2 revenue of $116 million, a 30% year-over-year increase, but is expected to see a slight decline in Q3 due to seasonal impacts [17]. - The automotive and industrial markets are projected to decline in Q3 due to the divestiture of the automotive Ethernet business [18]. Product Technology Progress and Market Opportunities - Strong demand for optical interconnect products, particularly 800G PAMDSP, is noted, with next-generation products beginning to ship [20][22]. - The company is positioning itself in AI infrastructure, with expectations for long-term growth driven by advancements in switches and interconnects [23].

Core Viewpoint - Marvell Technology's disappointing earnings guidance led to a significant drop in its stock price, highlighting investor dissatisfaction with merely meeting expectations in a high-demand AI market [1] Financial Performance - Marvell reported Q2 revenue of $2.01 billion, a 58% year-over-year increase, which met analyst expectations [1] - Data center revenue grew 69% year-over-year to $1.49 billion, slightly below the analyst average expectation of $1.51 billion [1] - Adjusted earnings per share were $0.67, also in line with analyst expectations [1] Earnings Guidance - The company provided a Q3 revenue guidance midpoint of $2.06 billion, falling short of the analyst average expectation of $2.11 billion [1] - CEO Matthew Murphy indicated that Q3 data center revenue would remain flat sequentially but is expected to strengthen significantly in Q4 [1] Market Expectations - Despite strong demand for custom AI chips and optical products, the market had higher expectations for Marvell's performance [1] - Analyst Kinngai Chan noted that the weak guidance for Q3 suggests a decline in custom ASIC business, which was unexpected given the anticipated acceleration in growth due to design orders from large clients [2] Client Impact - Delays in Microsoft's self-developed AI chips until 2028 or later could negatively impact Marvell, as it was set to design components for these chips [2] - Amazon's AWS is reportedly losing market share to competitors like Microsoft Azure and Alphabet's Google Cloud, which may also affect Marvell's business [2] Future Outlook - Analyst Tore Svanberg believes Marvell remains well-positioned in the ASIC sector but may require 12-18 months for the business to diversify and achieve sustained outperformance and upward guidance revisions [2]

Core Viewpoint - Marvell Technology (MRVL.US) reported a record revenue of $2.01 billion for Q2, a 58% year-over-year increase, but this only met Wall Street analysts' expectations, leading to an approximate 11.3% drop in after-hours trading to $68.52 [1] Financial Performance - Q2 revenue reached a record $2.01 billion, reflecting a 58% year-over-year growth [1] - Adjusted earnings per share were $0.67, aligning with analysts' expectations [1] Guidance and Market Reaction - The company provided a Q3 revenue guidance midpoint of approximately $2.06 billion, slightly below analysts' expectations of $2.11 billion [1] - The lack of an "upside" signal in performance guidance contributed to the negative market reaction [1] Business Outlook - CEO Matt Murphy indicated that growth in the custom chip business is expected to be "non-linear," suggesting a flat performance in Q3 but a significant improvement in Q4 [1]

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]