Non-GAAP Financial Measures - Marvell uses non-GAAP financial measures to evaluate operating performance, establish budgets, compare performance against forecasts, and determine compensation[3, 7] - A non-GAAP tax rate of 100% was applied to the non-GAAP financial results for the second quarter of fiscal year 2026[3] - Non-GAAP operating income for the quarter ended August 2, 2025, was $6988 million, compared to a GAAP operating income of $2901 million[17] - Non-GAAP net income for the quarter ended August 2, 2025, was $5855 million, compared to a GAAP net income of $1948 million[19] Balance Sheet Highlights (as of August 2, 2025) - Cash and cash equivalents totaled $12244 million[9] - Accounts receivable, net, were $14517 million[9] - Inventories were $10516 million[9] - Total assets amounted to $205863 million[9] - Total liabilities were $71646 million[9] Revenue Analysis - Total net revenue for the quarter ended August 2, 2025, reached $20061 million[11, 21] - Data center revenue was $14905 million, representing 74% of total net revenue[21] - Enterprise networking contributed $1936 million, accounting for 10% of total net revenue[21] - Carrier infrastructure generated $1301 million, making up 6% of total net revenue[21]

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]

Core Insights - Marvell Technology, Inc. has introduced the industry's first 2nm 64 Gbps bi-directional die-to-die (D2D) interconnect, which significantly enhances bandwidth and performance for next-generation XPUs while minimizing power consumption and silicon area [1][4] Technology Advancements - The 64 Gbps bi-directional D2D interface offers a bandwidth density exceeding 30 Tbps/mm, which is more than three times that of UCIe at equivalent speeds, and reduces compute die area requirements by 15% compared to conventional implementations [2] - The interface features advanced adaptive power management that can lower power consumption by up to 75% under normal workloads and 42% during peak traffic periods [2][6] - Unique features such as redundant lanes and automatic lane repair enhance performance and reliability, improving yield and reducing bit-error rates [3] Strategic Positioning - Marvell's introduction of the 64 Gbps D2D interface aligns with its strategy to develop a comprehensive portfolio of technologies aimed at accelerating the development of custom devices and diversifying options for semiconductor designers [4] - The company has a proven track record of delivering industry firsts, including the announcement of a 2nm platform in March 2024 and the demonstration of working 2nm silicon by March 2025 [4] Custom Platform Strategy - Marvell's custom platform strategy focuses on delivering breakthrough results through unique semiconductor designs and innovative approaches, combining expertise in system and semiconductor design with a comprehensive portfolio of semiconductor solutions [5]

Group 1 - Morgan Stanley anticipates that Marvell Technology (MRVL.US) may provide better-than-expected earnings guidance in light of the recent divestiture of its Automotive Ethernet business and market concerns regarding Amazon's Trainium chips [1] - Marvell is set to announce its Q2 FY2026 financial results on August 28, with market expectations of adjusted earnings per share at $0.67 and revenue at $2.01 billion [1] - The Automotive Ethernet business was sold to Infineon for $2.5 billion, which is expected to contribute $225 million to $250 million in revenue for FY2026 [1] Group 2 - Analyst Joseph Moore from Morgan Stanley expects the optical business to show upward potential this quarter, and despite slightly lowering expectations post-divestiture, anticipates a positive earnings outlook excluding that impact [1] - AI business revenue is projected to be $876 million for the July quarter (up 6.6% quarter-over-quarter) and $955 million for the October quarter (up 9.0% quarter-over-quarter), with dedicated integrated circuits (ASICs) showing rapid growth [1] - Moore believes that the optical business may outperform expectations due to strong AI growth momentum, and it is viewed as more robust and sustainable than ASIC business, which is expected to steadily reach $2 billion in revenue this year [1] Group 3 - Regarding Micron Technology (MU.US), Morgan Stanley predicts negative sentiment in the coming quarters, particularly concerning HBM 3e high-bandwidth memory pricing, which is expected to reset with at least one customer, NVIDIA (NVDA.US), committing to pricing for the entire year of 2025 [2] - Despite the negative market sentiment, HBM is expected to maintain a meaningful premium over DDR5, although the premium is anticipated to narrow [2]

Core Viewpoint - Marvell Technology's AI-related business is projected to exceed $4 billion in 2025, more than doubling year-over-year, with continued acceleration expected in 2026 [1] Group 1: Financial Projections - Marvell is expected to report July-quarter revenue of approximately $2.05 billion, driven by strong demand for AI chips and optical digital signal processors [2] - The company's October-quarter guidance is projected at around $2.1 billion, slightly below consensus due to the sale of its automotive Ethernet business, which will impact EPS by $0.02–$0.03 per quarter [3] Group 2: Strategic Developments - Marvell has secured multiple 2nm design wins for future products, indicating strong positioning in advanced technology [2] - The divestiture of the automotive Ethernet business is expected to be accretive to earnings by $0.05–$0.10 per share if proceeds are used for share buybacks [4] Group 3: Market Demand and Positioning - There is strong demand for 800G PAM4 optical DSP orders and shipments, particularly for Nvidia's H200 and GB200 GPUs and Alphabet's TPU infrastructure [4] - Marvell is well-positioned to capitalize on the hyperscale capital expenditure boom and AI-driven infrastructure investments, reaffirming a positive long-term outlook [4] Group 4: Stock Performance - Marvell stock was trading higher by 0.97% at $73.71 as of the latest check [5]