MRVL Earnings Preview: MSFT, Backlog & Customer Runway in Focus

Core Insights - Marll is set to report its third-quarter earnings, with expectations of strong performance driven by AI momentum and growth in revenue and earnings per share (EPS) [1][3][4] Earnings Expectations - EPS is anticipated to be 75 cents, an increase from 67 cents in the previous quarter and a 43% rise year-over-year [4] - Revenue is expected to reach $2.06 billion, reflecting approximately 36% year-over-year growth and an increase from $2.01 billion last quarter [5] AI and Data Center Focus - The revenue breakdown will be crucial, particularly the contribution from AI and data center products compared to legacy chips [5][9] - Strong demand for custom AI silicon and data center interconnect solutions was a significant factor in the previous quarter's growth [6] Market Sentiment - Analysts are optimistic about Marll's potential to solidify its leadership in AI infrastructure if it meets or exceeds expectations [4][9] - Despite a year-to-date decline of nearly 16%, the stock has shown bullish momentum, rising almost 11% in the week leading up to the earnings report [9] Competitive Landscape - Analysts have flagged potential risks related to valuation, competition, and capital expenditures, which could impact margins and pricing power [11][12][13] - The increasing competition in the AI infrastructure space may lead to margin pressure, which is a concern for investors [13]