MRVL's Q2 Earnings Likely to be Powered by AI Silicon & Data Center Boom

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]