Marvell Gets AI Sales Boost In Fiscal Q4. Stock Rises.

Core Insights - Marvell Technology (MRVL) narrowly beat analyst estimates for its fiscal fourth quarter, reporting adjusted earnings of 80 cents per share on sales of $2.22 billion, compared to expectations of 79 cents and $2.21 billion respectively [1][1][1] - The company experienced a year-over-year earnings increase of 33% and a sales rise of 22% [1][1][1] - For the current quarter, Marvell forecasts adjusted earnings of 79 cents per share on sales of $2.4 billion, exceeding Wall Street's expectations of 74 cents and $2.28 billion [1][1][1] Financial Performance - Marvell reported record fiscal 2026 revenue of $8.195 billion, a 42% year-over-year growth driven by strong AI demand [1][1][1] - The company anticipates accelerating year-over-year revenue growth in fiscal 2027, supported by a robust data center business and record pace of bookings [1][1][1] Acquisitions and Future Growth - Marvell completed two acquisitions in the current year: Celestial AI and XConn Technologies, which are expected to contribute significantly to revenue in the coming years [1][1][1] - Revenue contributions from Celestial AI are projected to begin in the second half of fiscal 2028, reaching a $500 million annualized run rate by Q4 of fiscal 2028, and doubling to $1 billion by Q4 of fiscal 2029 [1][1][1] - Initial revenue contributions from XConn are expected to start in Q3 of fiscal 2027, ramping to a $50 million annualized run rate by Q4 of fiscal 2027, with an anticipated $100 million contribution in fiscal 2028 [1][1][1] Stock Performance - Following the earnings report, Marvell's stock surged over 9% in after-hours trading, reaching $82.53, after a regular session decline of 3.1% to close at $75.68 [1][1][1] - Marvell's stock has a composite rating of 79 out of 99, indicating a middling performance compared to top growth stocks [1][1][1]