MRVL to Post Q2 Earnings: Time to Buy, Sell or Hold the Stock?

Core Insights - Marvell Technology, Inc. (MRVL) is set to report its second-quarter fiscal 2026 results on August 28, 2025, with anticipated revenues of $2 billion, reflecting a year-over-year growth of 58% [1] - The company expects non-GAAP earnings of 67 cents per share, indicating a 123.33% increase year over year [2] Revenue Projections - For the second quarter, data center revenues are projected to reach $1.5 billion, representing a significant year-over-year growth of 70.4% [6] - Networking and Carrier segments are expected to see revenues rise by 22.6% and 90.3% year over year, reaching $185.1 million and $144.5 million, respectively [9] - The Automotive/Industrial segment is projected to face a slight sequential decline, with revenues estimated at $75.6 million, indicating a 0.8% decrease [10] Market Position and Valuation - Year-to-date, MRVL shares have decreased by 33.7%, underperforming the Zacks Electronics – Semiconductors industry, which has grown by 16.4% [11] - MRVL stock is currently trading at a forward 12-month price-to-sales (P/S) multiple of 6.95X, which is lower than the industry average of 8.65X, indicating a potentially attractive valuation [12] Strategic Collaborations - Marvell Technology is enhancing its position in the data center market through collaborations with industry leaders such as NVIDIA, Dell Technologies, and Coherent Corp. to develop high-speed networking technology for AI workloads [16][18] - The partnership with NVIDIA focuses on integrating Marvell's optical interconnect solutions with NVIDIA's AI and computing technology, aimed at improving efficiency in AI applications [17] Growth Potential - The company is positioned as a key player in the high-performance computing ecosystem, driven by advancements in AI-related investments and custom silicon solutions [7][14] - Marvell's focus on next-generation data center connectivity and custom silicon is expected to drive long-term growth, particularly in the AI infrastructure market [15][19]