Key TakeawaysShares in Marvell Technology jumped in premarket trading Wednesday after the chipmaker posted strong quarterly results and issued a rosy outlook amid robust demand for its custom AI chips. The stock broke out from an ascending triangle on above-average volume Monday, a bullish chart pattern that indicates a continuation of the uptrend.A bars pattern, which takes the price bars from the stock’s trending move between October and November and repositions them from the ascending triangle’s lower tr ...

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Financial Data and Key Metrics - Revenue for Q3 FY2025 was $1.516 billion, $66 million above the midpoint of guidance, growing 19% sequentially and 7% year-over-year [7][9] - Non-GAAP EPS was $0.43, 43% above the midpoint of guidance, growing 43% sequentially [8] - Data center revenue accounted for 73% of total revenue, reaching a record $1.1 billion, growing 98% year-over-year and 25% sequentially [12][25] - Enterprise networking revenue was $151 million, while carrier revenue was $85 million, collectively growing 4% sequentially [19] - Consumer revenue was $97 million, growing 9% sequentially, while automotive and industrial revenue was $83 million, also growing 9% sequentially [20][21] Business Line Performance - Custom AI silicon drove strong performance, with significant demand and supply chain capacity secured for Q4 [12][13] - Electro-optics products grew double-digits sequentially, with strong bookings for 800-gig PAM products and shipments of 1.6T PAM DSPs [14] - Active electrical cable market saw acceleration in production ramp of 100-gig per lane 800-gig DSPs, with sampling of 200-gig per lane 1.6T AEC DSPs [16] Market Performance - Data center end market is expected to grow in the low-to-mid 20% range sequentially in Q4, driven by custom AI revenue and Ethernet switch products [17][18] - Enterprise networking and carrier markets are expected to grow sequentially in the mid-teens in Q4, with recovery momentum improving [19] - Consumer end market is expected to decline sequentially in the mid-teens in Q4 due to seasonality in gaming demand [20] - Automotive and industrial end market is projected to grow sequentially in the low-to-mid single-digits in Q4 [21] Strategy and Industry Competition - The company is focused on AI-driven growth, with custom silicon programs and strong optics growth driving the transformation into an AI-first data center semiconductor company [9][25] - Strategic investments in technology, including 2-nanometer and 3-nanometer platforms, are aimed at maintaining leadership in process technology and energy efficiency [27][28] - The company has redirected investments towards the data center, resulting in a $750 million restructuring charge in Q3 [26][37] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the AI super cycle, with strong demand for custom AI silicon and optical interconnect products [12][23] - The company expects to significantly exceed the full-year AI revenue target of $1.5 billion, with strong growth forecasted for Q4 and FY2026 [23][33] - The recovery in enterprise networking and carrier markets is gaining momentum, with targeted investments planned to grow revenue in these areas [29][30] Other Important Information - The company announced a five-year agreement with Amazon Web Services, covering custom AI products, optical DSPs, and other data center semiconductors [10][11] - Stock repurchases totaled $525 million through Q3, with $3 billion remaining in the repurchase authorization [32] - The company expects to return to GAAP profitability in Q4, with strong operating leverage and cash flow generation [46] Q&A Session Summary Question: AI Revenue Quantification and Fiscal 2026 Outlook - AI revenue for FY2025 is tracking significantly ahead of the $1.5 billion target, with hundreds of millions in upside. The outlook for FY2026 is also strong, driven by demand for custom AI and optical interconnect products [51][52] Question: Management Commitment and Customer Diversification - The CEO reaffirmed commitment to Marvell, emphasizing the company's transformation and focus on the AI super cycle. Customer diversification is strong, with multiple large volume opportunities across custom AI and compute solutions [55][56] Question: Competitive Landscape for Custom Silicon - The company sees itself and one other major competitor as the primary players in custom silicon, with high barriers to entry due to the complexity of design, manufacturing, and supply chain capabilities [87][88] Question: Gross Margins and Operating Leverage - Gross margins are expected to remain around 60% in FY2026, with operating leverage driving significant margin expansion as revenue outpaces operating expenses [111][112] Question: Custom Silicon Growth and Non-AI Business - Custom silicon is largely driven by AI, with significant growth expected in FY2025 and FY2026. Non-AI custom programs are also contributing, but AI remains the dominant driver [106][107] Question: ASIC Opportunities and Customer C - Customer C remains the largest opportunity among the three major custom silicon customers, with progress tracking well and unchanged expectations from the AI Day presentation [119][120]

) | MARVELL Q3 FY25 Financial and Business Results December 3, 2024 Forward-looking statements Except for statements of historical fact, this presentation contains forward-looking statements (within the meaning of the federal securities laws) including statements related to future revenue, future earnings, and the success of our product releases that involve risks and uncertainties. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "seeks," "estimates," "can," "may," "will, ...

For the quarter ended October 2024, Marvell Technology (MRVL) reported revenue of $1.52 billion, up 6.9% over the same period last year. EPS came in at $0.43, compared to $0.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.45 billion, representing a surprise of +4.29%. The company delivered an EPS surprise of +7.50%, with the consensus EPS estimate being $0.40.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Marvell Technology (MRVL) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.50%. A quarter ago, it was expected that this chipmaker would post earnings of $0.29 per share when it actually produced earnings of $0.30, delivering a surprise of 3.45%.Over the last four quarters, the compa ...

[Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) [Q3 FY25 Financial Results](index=1&type=section&id=Q3%20FY25%20Financial%20Results) Marvell Technology's Q3 FY25 net revenue of **$1.516 billion** increased 7% year-on-year, exceeding guidance, with a GAAP diluted loss and non-GAAP income per share Three Months Ended November 2, 2024 (in millions, except per share amounts) | Metric | Value | | :-------------------------- | :------------------- | | Net Revenue | $1.516 billion | | GAAP Gross Margin | 23.0% | | Non-GAAP Gross Margin | 60.5% | | GAAP Diluted Loss Per Share | $(0.78) | | Non-GAAP Diluted Income Per Share | $0.43 | | Cash Flow from Operations | $536.3 million | - Q3 FY25 net revenue of **$1.516 billion** was **$66.0 million** above the mid-point of the Company's guidance[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Matt Murphy highlighted strong Q3 sequential revenue growth from AI and custom AI silicon, anticipating significant Q4 year-over-year revenue acceleration - Marvell's fiscal third quarter 2025 revenue grew **19% sequentially**, well above guidance, driven by strong demand from AI[4](index=4&type=chunk) - Custom AI silicon programs are now in volume production, augmented by robust ongoing demand from cloud customers for interconnect products[4](index=4&type=chunk) - For Q4, the company forecasts another **19% sequential revenue growth** and expects year-over-year revenue growth to accelerate significantly to **26%**, marking the beginning of a new era of growth[4](index=4&type=chunk) [Q4 FY25 Financial Outlook](index=1&type=section&id=Q4%20FY25%20Financial%20Outlook) Marvell projects Q4 FY25 net revenue of **$1.800 billion** (+/- 5%) and non-GAAP diluted net income per share of **$0.59** (+/- $0.05) Q4 FY25 Financial Outlook | Metric | Outlook | | :-------------------------------- | :------------------- | | Net Revenue | $1.800 billion +/- 5% | | GAAP Gross Margin | ~50% | | Non-GAAP Gross Margin | ~60% | | GAAP Operating Expenses | ~$710 million | | Non-GAAP Operating Expenses | ~$480 million | | GAAP Diluted Net Income Per Share | $0.16 +/- $0.05 | | Non-GAAP Diluted Net Income Per Share | $0.59 +/- $0.05 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Marvell will host a conference call on December 3, 2024, at 1:45 p.m. PT to discuss Q3 FY25 results, with webcast and replay options - A conference call to discuss Q3 FY25 results will be held on **Tuesday, December 3, 2024, at 1:45 p.m. Pacific Time**[7](index=7&type=chunk) - Interested parties can join via registration for an automated call back, direct dial, or access the webcast on the Marvell Investor Relations website[7](index=7&type=chunk) [Discussion of Non-GAAP Measures](index=2&type=section&id=Discussion%20of%20Non-GAAP%20Measures) Marvell uses non-GAAP measures, excluding items like stock-based compensation, for supplemental insights and internal evaluation, not as a GAAP substitute - Non-GAAP financial measures exclude stock-based compensation, amortization of acquired intangible assets, acquisition/divestiture-related costs, restructuring charges, and certain discrete event expenses[8](index=8&type=chunk) - A non-GAAP tax rate of **7.0%** was applied for the third quarter of fiscal 2025, based on estimated annual GAAP income tax forecast adjusted for non-GAAP items[9](index=9&type=chunk) - Non-GAAP measures are used internally for management's evaluation of operating performance, budgeting, performance comparisons, and compensation determination, and externally for assessing operating performance and valuation[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section contains forward-looking statements subject to known and unknown risks, including macroeconomic conditions and supply chain disruptions, with no commitment to updates - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from implied statements[13](index=13&type=chunk) - Key risks include changes in general macroeconomic conditions, ability to estimate customer demand, dependence on a few customers, downturns in the semiconductor industry, and supply chain disruptions[13](index=13&type=chunk) - The company assumes no obligation and does not intend to update or revise these forward-looking statements[13](index=13&type=chunk) [About Marvell Technology, Inc.](index=4&type=section&id=About%20Marvell) [Company Overview](index=4&type=section&id=Company%20Overview) Marvell Technology is a leading provider of data infrastructure semiconductor solutions, collaborating globally to move, store, process, and secure data across diverse architectures - Marvell is a leader in data infrastructure semiconductor solutions, building solutions through partnerships with customers[14](index=14&type=chunk) - The company moves, stores, processes, and secures the world's data with semiconductor solutions designed for current and future needs[14](index=14&type=chunk) - Marvell's solutions transform enterprise, cloud, automotive, and carrier architectures through deep collaboration and transparency[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Marvell reported Q3 FY25 net revenue of **$1,516.1 million**, a GAAP gross profit of **$349.4 million**, and a net loss of **$(676.3) million**, resulting in a diluted net loss per share Three Months Ended November 2, 2024 (in millions, except per share amounts) | Metric | Amount (USD) | | :-------------------------- | :------- | | Net Revenue | $1,516.1 | | Cost of Goods Sold | $1,166.7 | | Gross Profit | $349.4 | | Total Operating Expenses | $1,052.2 | | Operating Loss | $(702.8) | | Net Loss | $(676.3) | | Net Loss Per Share — Diluted | $(0.78) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of November 2, 2024, Marvell's total assets were **$19,715.6 million**, with cash and cash equivalents at **$868.1 million**, total liabilities, and stockholders' equity As of November 2, 2024 (in millions) | Metric | Nov 2, 2024 (USD) | Feb 3, 2024 (USD) | | :---------------------------- | :---------- | :---------- | | Cash and Cash Equivalents | $868.1 | $950.8 | | Total Current Assets | $2,816.8 | $3,062.7 | | Goodwill | $11,586.9 | $11,586.9 | | Acquired Intangible Assets, net | $2,957.7 | $4,004.1 | | Total Assets | $19,715.6 | $21,228.5 | | Total Liabilities | $6,342.7 | $6,397.1 | | Total Stockholders' Equity | $13,372.9 | $14,831.4 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q3 FY25, Marvell generated **$536.3 million** in net cash from operating activities, with investing and financing activities resulting in a **$59.4 million** net increase in cash and cash equivalents Three Months Ended November 2, 2024 (in millions) | Metric | Amount (USD) | | :---------------------------------------- | :------- | | Net Cash Provided by Operating Activities | $536.3 | | Net Cash Used in Investing Activities | $(75.5) | | Net Cash Used in Financing Activities | $(401.4) | | Net Increase in Cash and Cash Equivalents | $59.4 | | Cash and Cash Equivalents at End of Period | $868.1 | [Reconciliations from GAAP to Non-GAAP](index=8&type=section&id=Reconciliations%20from%20GAAP%20to%20Non-GAAP) [Q3 FY25 GAAP to Non-GAAP Reconciliations](index=8&type=section&id=Q3%20FY25%20GAAP%20to%20Non-GAAP%20Reconciliations) Marvell's Q3 FY25 GAAP results were reconciled to non-GAAP by adjusting for special items, resulting in a non-GAAP gross profit of **$917.1 million** (60.5% margin) and non-GAAP net income of **$373.0 million** Q3 FY25 GAAP to Non-GAAP Gross Profit and Margin (in millions) | Metric | GAAP (USD) | Special Items (USD) | Non-GAAP (USD) | | :------------------- | :------- | :------------ | :------- | | Gross Profit | $349.4 | $567.7 | $917.1 | | Gross Margin | 23.0% | | 60.5% | Q3 FY25 GAAP to Non-GAAP Operating Expenses and Margin (in millions) | Metric | GAAP (USD) | Special Items (USD) | Non-GAAP (USD) | | :------------------------- | :--------- | :------------ | :--------- | | Total Operating Expenses | $1,052.2 | $(585.3) | $466.9 | | Operating Margin | (46.4)% | | 29.7% | Q3 FY25 GAAP to Non-GAAP Net Income and EPS (in millions, except per share amounts) | Metric | GAAP (USD) | Special Items (Pre-tax) (USD) | Non-GAAP (USD) | | :-------------------------------- | :--------- | :---------------------- | :------- | | Net Loss/Income | $(676.3) | $1,151.6 | $373.0 | | Diluted Net Loss/Income Per Share | $(0.78) | | $0.43 | [Q4 FY25 Outlook GAAP to Non-GAAP Reconciliations](index=11&type=section&id=Q4%20FY25%20Outlook%20GAAP%20to%20Non-GAAP%20Reconciliations) Q4 FY25 outlook reconciles GAAP to non-GAAP, adjusting for special items, projecting a non-GAAP gross margin of approximately **60%** and diluted net income per share Q4 FY25 Outlook GAAP to Non-GAAP Gross Margin | Metric | GAAP Outlook | Special Items | Non-GAAP Outlook | | :----------- | :----------- | :------------ | :--------------- | | Gross Margin | ~50% | 0.7% (SBC), 9.3% (Amort.) | ~60% | Q4 FY25 Outlook GAAP to Non-GAAP Operating Expenses (in millions) | Metric | GAAP Outlook (USD) | Special Items (USD) | Non-GAAP Outlook (USD) | | :----------------------- | :----------- | :------------ | :--------------- | | Total Operating Expenses | ~$710 | 142 (SBC), 78 (Amort.), 10 (Restruct.) | ~$480 | Q4 FY25 Outlook GAAP to Non-GAAP Diluted Net Income Per Share | Metric | GAAP Outlook | Special Items | Non-GAAP Outlook | | :--------------------------- | :----------- | :------------ | :--------------- | | Diluted Net Income Per Share | $0.16 +/- $0.05 | 0.18 (SBC), 0.28 (Amort.), 0.01 (Restruct.), (0.04) (Tax) | $0.59 +/- $0.05 | [Quarterly Revenue Trend](index=12&type=section&id=Quarterly%20Revenue%20Trend) [End Market Overview](index=12&type=section&id=End%20Market%20Overview) Marvell's product solutions serve five key end markets: data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial - Marvell's product solutions serve five large end markets: data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial[30](index=30&type=chunk) - Data center applications include cloud and on-premise AI systems, ethernet switching, network-attached storage, and various servers[30](index=30&type=chunk) [Quarterly Revenue Trends by End Market](index=13&type=section&id=Quarterly%20Revenue%20Trends%20by%20End%20Market) Q3 FY25 Data Center revenue grew substantially to **$1,101.1 million**, increasing **98%** year-over-year and **25%** quarter-over-quarter, now representing **73%** of total net revenue Revenue by End Market (Three Months Ended November 2, 2024, in millions) | End Market | Revenue (USD) | % Change YoY | % Change QoQ | % of Total Revenue | | :-------------------- | :-------- | :----------- | :----------- | :----------------- | | Data Center | $1,101.1 | 98% | 25% | 73% | | Enterprise Networking | $150.9 | (44)% | —% | 10% | | Carrier Infrastructure | $84.7 | (73)% | 12% | 6% | | Consumer | $96.5 | (43)% | 9% | 6% | | Automotive/Industrial | $82.9 | (22)% | 9% | 5% | | **Total Net Revenue** | **$1,516.1** | **7%** | **19%** | **100%** |

Q3 Net Revenue: $1.516 billion, grew by 7% year-on-year Q3 Gross Margin: 23.0% GAAP gross margin; 60.5% non-GAAP gross margin Q3 Diluted income (loss) per share: $(0.78) GAAP diluted loss per share; $0.43 non-GAAP diluted income per shareSANTA CLARA, Calif., Dec. 3, 2024 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today reported financial results for the third quarter of fiscal year 2025.Net revenue for the third quarter of fiscal 2025 w ...

On Monday, Amazon Web Services (AWS) and Marvell Technology, Inc MRVL announced an expanded relationship for AI and data connectivity products.The five-year “multi-generational” agreement covers multiple AWS products and cloud infrastructure, developing the strategic relationship.Leveraging its silicon technologies, Marvell will provide AWS with a “broad range” of data center semiconductors, including custom AI products (AWS Trainium2.0 custom AI ASIC), optical digital signal processors (DSPs), active elect ...

Marvell Technology Inc MRVL will be reporting its third-quarter earnings on Tuesday. Wall Street expects 41 cents in EPS and $1.46 billion in revenues as the company reports after market hours.The stock is up 86.35% over the past year, 42.09% over the past six months.Let’s look at what the charts indicate for Marvell stock and how the stock currently maps against Wall Street estimates.Read Also: Marvell Technology Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings CallMar ...