Marvell Technology(US:MRVL) Huachuang Securities·2026-03-08 11:59Investment Rating - The report assigns a strong buy rating for Marvell Technology, expecting it to outperform the benchmark index by over 20% in the next six months [57]. Core Insights - Marvell Technology reported record revenue for FY26Q4, with a total revenue of $2.219 billion, reflecting a quarter-over-quarter increase of 7% and a year-over-year increase of 22% [3][8]. - The strong demand from the data center market significantly contributed to the revenue growth, with data center revenue reaching $1.651 billion in FY26Q4, up 9% quarter-over-quarter and 21% year-over-year [3][15]. - The company expects FY27Q1 revenue to be approximately $2.4 billion, with a projected quarter-over-quarter growth of about 8% and a year-over-year growth exceeding 30% [4][24]. Revenue Performance - FY26Q4 revenue breakdown shows data center market revenue at $1.651 billion and communications and other markets at $567 million, with the latter expected to grow at a low single-digit rate quarter-over-quarter and approximately 30% year-over-year [22][23]. - Non-GAAP gross margin for FY26Q4 was reported at 59.0%, while GAAP gross margin was 51.7%, both exceeding the guidance midpoint [9][10]. Guidance for FY27Q1 - The company anticipates FY27Q1 Non-GAAP gross margin to be between 58.25% and 59.25%, with GAAP gross margin expected between 51.4% and 52.4% [4][25]. - Operating expenses for FY27Q1 are projected to be around $872 million for GAAP and approximately $575 million for Non-GAAP [24][25]. Market Segmentation - The data center market is expected to see a quarter-over-quarter revenue growth of about 10% in FY27Q1, despite a seasonal decline in local deployment data center revenue [4][15]. - The communications and other markets are projected to maintain low single-digit quarter-over-quarter growth with a year-over-year increase of around 30% [4][22]. Strategic Developments - Marvell is focusing on expanding its product offerings in the data center segment, including advancements in custom chips and interconnect products, which are expected to drive significant revenue growth [20][21]. - The company has established strong partnerships with major data center operators, enhancing its market position and diversifying its customer base [26][27].