Core Viewpoint - Marvell Technology's shares dropped over 17% due to guidance that did not meet elevated buyside expectations, despite reporting slightly better-than-expected earnings and revenue for the fourth quarter [1][4]. Group 1: Financial Performance - For the first fiscal quarter, Marvell expects sales of approximately $1.88 billion, slightly above the $1.87 billion forecasted by analysts, but below some buyside expectations of around $2 billion [1]. - In the fourth quarter, Marvell reported adjusted earnings per share of 60 cents and revenue of $1.82 billion, which exceeded the earnings estimate of 59 cents and revenue prediction of $1.80 billion [4]. - Revenue from data centers was reported at $1.37 billion, surpassing the average estimate of $1.36 billion [4]. Group 2: Market Reactions and Expectations - The disappointing guidance has raised concerns regarding Marvell's partnership with Amazon Web Services on the Trainium AI chip and the potential limitations in the custom application-specific integrated circuits business [2]. - Analyst Tom O'Malley from Barclays noted that while Marvell's future ASIC prospects sound promising, the near-term numbers related to Amazon are lower than expected, which is a significant concern for the market [3]. - The chipmaker has benefited from the AI boom, but the sector is now facing heightened expectations for financial performance [3].

The stock of Marvell Technology (MRVL -18.34%) is getting hit with big sell-offs on Thursday following the company's recent earnings report. The semiconductor specialist's share price was down 17.4% as of noon ET today.Marvell published its fourth-quarter results after the market closed yesterday, and its stock is seeing big sell-offs even though the business posted sales, earnings, and forward guidance that came in ahead of the average Wall Street targets. Sell-offs for Marvell after earnings are also trig ...

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Core Insights - Marvell Technology, Inc. reported stronger-than-expected fourth-quarter results for fiscal 2025, with non-GAAP earnings of 60 cents per share, exceeding the Zacks Consensus Estimate by 1.7% [1][2] - The company’s fourth-quarter revenues reached $1.82 billion, surpassing the Zacks Consensus Estimate by 0.7% and reflecting a 27% year-over-year growth [3] Financial Performance - Fourth-quarter non-GAAP earnings increased by 30% year over year and 40% sequentially, driven by higher revenues and effective cost management [2] - Non-GAAP gross profit for the fourth quarter was $1.09 billion, a 19.9% increase year over year, although the non-GAAP gross margin contracted to 63.9% [11] - Non-GAAP operating expenses totaled $479.4 million, up from $428.5 million in the previous year, with a non-GAAP operating margin of 33.7% [12] Revenue Breakdown - Data center revenues were $1.37 billion, marking a 78% year-over-year increase and accounting for 75% of total revenues [6] - Enterprise networking revenues dropped 35% year over year to $171 million, while carrier infrastructure revenues fell 38% to $106 million [7][8] - Automotive/Industrial revenues increased 4% year over year to $86 million, while consumer revenues decreased 38% to $85.7 million [9][10] Shareholder Returns - In the fourth quarter, Marvell returned $251.9 million to shareholders through stock repurchases and dividends, with a total of $725 million in share buybacks for the fiscal year [14] Future Guidance - For the first quarter of fiscal 2026, Marvell expects revenues of $1.875 billion, with a non-GAAP gross margin projected at 60% [15] - The company anticipates non-GAAP earnings per share of 61 cents, reflecting a year-over-year improvement of 145.8% [16]

Core Viewpoint - Nvidia Corp.'s stock, along with other semiconductor stocks, experienced a decline following Marvell Technology Inc.'s earnings report, which negatively impacted the artificial intelligence sector [1]. Group 1: Company Performance - Marvell Technology Inc. had previously established itself as a strong player in the AI market due to a multiyear contract with Amazon.com Inc., leading to high expectations for its earnings report [2]. - Despite a slight beat in results and outlook, Marvell's performance was insufficient to meet Wall Street's expectations, resulting in a negative market reaction [2].

Jose Najarro has positions in Marvell Technology and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Marvell Technology. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool. ...

Core Viewpoint - Marvell Technology's stock dropped 14.9% after the release of its Q4 fiscal year 2025 earnings report, despite revenue and earnings being in line with Wall Street estimates, primarily due to investor disappointment regarding guidance [1][2]. Financial Performance - Q4 fiscal year 2025 revenue was $1.82 billion, a 27% increase from $1.43 billion in Q4 fiscal year 2024 [3]. - GAAP operating income improved from a loss of $33.3 million to a profit of $235.2 million [3]. - GAAP net income flipped from a loss of $392.7 million to a profit of $200.2 million [3]. - Adjusted net income rose by 32% from $401.6 million to $531.4 million [3]. - GAAP earnings per share (EPS) changed from a loss of $0.45 to a profit of $0.23, while adjusted EPS increased by 30% from $0.46 to $0.60 [3]. Market Performance - The data center segment generated $1.37 billion in revenue, reflecting a 78% year-over-year increase, driven by strong demand for AI-related products [6][10]. - Other segments like enterprise networking and carrier infrastructure saw declines of 35% and 38% year-over-year, but experienced sequential growth of 14% and 25%, respectively [7]. - The automotive/industrial segment grew by 4% year-over-year and 3% sequentially, while the consumer segment continued to decline [8]. Management Commentary - CEO Matt Murphy highlighted strong growth in the data center market and a recovery in multi-market businesses, with custom AI silicon programs entering volume production [10][11]. - The company anticipates first-quarter revenue growth of over 60% year-over-year for fiscal year 2026 [11]. Guidance - For Q1 fiscal year 2026, Marvell expects adjusted EPS between $0.56 and $0.66, with revenue projected at $1.87 billion, aligning with analyst consensus estimates [12][15]. - The company’s outlook reflects cautious optimism amid volatile geopolitical and macroeconomic conditions [13]. Investment Outlook - Marvell's stock is recommended for growth investors, with robust demand expected from the data center market as tech companies expand infrastructure for AI capabilities [14].

Core Viewpoint - Marvell Technology Inc. reported revenue forecasts that fell short of the highest expectations, leading to a 16% drop in stock price after the announcement, disappointing investors hoping for greater returns from the AI boom [1][4]. Group 1: Financial Performance - For the first fiscal quarter ending in April, Marvell expects sales of approximately $1.88 billion, aligning with analyst averages but below some forecasts of $2 billion [1]. - The company reported a fourth-quarter earnings per share of $0.60, exceeding the analyst expectation of $0.59, with revenue growth of 27% to $1.82 billion, surpassing the $1.8 billion forecast [5]. - Marvell's data center revenue accounted for 75% of total quarterly revenue, with a 78% year-over-year increase in the data center segment, reaching $1.37 billion [3][4]. Group 2: Market Position and Strategy - Marvell is positioned as a key beneficiary of AI computing developments, providing chip design services to major tech clients, including Amazon, to help them develop their own data center semiconductors [2]. - The company emphasizes focusing investments on data centers to capitalize on the AI trend, with expectations of strong revenue growth for the fiscal year [4]. Group 3: Analyst Insights - Analysts from Raymond James and Stifel Financial Corp. expressed cautious optimism regarding Marvell's stock, with expectations for the custom AI accelerator market to exceed $50 billion by 2028, indicating potential for Marvell to capture significant market share [3]. - Despite good earnings data, concerns remain about geopolitical pressures and broader worries regarding the monetization of AI, which may have contributed to the stock's decline [4].

Financial Data and Key Metrics Changes - Marvell reported record revenue of $1.817 billion for Q4 2025, growing 20% sequentially and 27% year-over-year [6][38] - For the full fiscal year 2025, total revenue reached $5.767 billion, with data center revenue growing 88% year-over-year [8][35] - Non-GAAP earnings per share for Q4 was $0.60, reflecting a 40% sequential growth [7][40] - GAAP gross margin for Q4 was 50.5%, while non-GAAP gross margin was 60.1% [38] Business Line Data and Key Metrics Changes - Data center revenue for Q4 was $1.37 billion, growing 78% year-over-year and 24% sequentially [10] - Enterprise networking revenue was $171 million, and carrier infrastructure revenue totaled $106 million, collectively growing 18% sequentially [25] - Consumer end market revenue declined 8% sequentially to $89 million, with expectations of a 35% decline in Q1 2026 [26] - Automotive and industrial revenue was $86 million, growing 3% sequentially, with expectations of a decline in Q1 2026 [27] Market Data and Key Metrics Changes - Data center accounted for 75% of consolidated revenue in Q4 2025 [31] - The company anticipates continued strong demand in the cloud and AI segments, driving sequential double-digit revenue growth [24] - The consumer market is expected to stabilize around $300 million annually over the next several years [26] Company Strategy and Development Direction - Marvell is focusing investments on data center markets to capitalize on AI opportunities, restructuring its organizational structure to enhance this focus [31][32] - The company is engaged in custom silicon programs, with significant momentum in AI and cloud infrastructure [20][21] - Marvell aims to achieve long-term non-GAAP operating margin targets of 38% to 40% while driving strong cash flow [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about robust year-over-year revenue growth in fiscal 2026, forecasting over 60% growth in Q1 2026 [9][10] - The company noted strong investment and infrastructure acceleration from hyperscalers, indicating a positive outlook for the AI super cycle [33] - Management highlighted the importance of high-speed networking and AI data centers, aligning with Marvell's strengths [13][14] Other Important Information - Marvell achieved a record $1.68 billion in operating cash flow and returned $933 million to shareholders through dividends and buybacks [9][37] - The company received an upgrade to its investment-grade credit rating from Fitch, reflecting strong operating momentum and improved leverage metrics [44] Q&A Session Summary Question: Concerns about competition for sockets - Management acknowledged the competitive landscape but emphasized confidence in the ramp of their current lead XPU program and future growth [53][56] Question: Breakdown of AI and non-AI revenue - Management clarified that AI now constitutes more than half of data center revenue, with strong growth expected [60][64] Question: Stickiness of custom ASIC customers - Management indicated that custom engagements with major hyperscalers are complex and sticky, with high barriers to entry [82][89] Question: Inventory growth and future guidance - Management explained that inventory growth supports ongoing custom programs and strong optics demand, with a flat quarter-over-quarter inventory on a day basis [127][132] Question: Risks of spending deceleration - Management expressed confidence in the visibility of growth, citing strong demand and new programs in the custom area [136][142]

For the quarter ended January 2025, Marvell Technology (MRVL) reported revenue of $1.82 billion, up 27.4% over the same period last year. EPS came in at $0.60, compared to $0.46 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.8 billion, representing a surprise of +0.73%. The company delivered an EPS surprise of +1.69%, with the consensus EPS estimate being $0.59.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...