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]

Core Viewpoint - Marvell Technology, Inc. is poised to report strong growth in its data center business driven by the increasing demand for AI solutions, with expectations of significant revenue increases in the upcoming fourth-quarter fiscal 2025 results [1][2][5]. Group 1: Data Center Business Performance - Marvell's data center segment has shown remarkable performance, achieving record revenues of $1.1 billion in the third quarter of fiscal 2025, reflecting a 98% year-over-year increase and 25% sequential growth [4]. - For the fourth quarter, Marvell anticipates data center revenues to grow by 20-25% sequentially, with estimates suggesting revenues could reach $1.36 billion, indicating a robust 23.5% sequential growth [5]. - The company's collaboration with major cloud providers like Amazon Web Services enhances its position in the AI-optimized silicon market [5]. Group 2: Custom AI Silicon as a Growth Driver - Marvell has made significant advancements in the AI semiconductor sector through its custom AI silicon programs, successfully ramping up its 100-billion-transistor AI accelerators [6]. - The demand for custom AI silicon remains strong, with an expanding pipeline across multiple customers, providing Marvell with a competitive edge in the AI data center market [7]. - Management indicated that the company is set to exceed its full-fiscal 2025 AI revenue target of $1.5 billion, driven by the growing demand for custom AI silicon [8]. Group 3: Electro-Optics and Networking Contributions - Marvell's electro-optics and high-speed networking segments are expected to significantly contribute to fourth-quarter revenues, with strong order momentum for its 800-gig PAM and 400ZR interconnect solutions [9]. - The company has begun shipments of its 1.6T PAM DSP technology, which enhances bandwidth efficiency and energy savings for next-generation data center interconnects [10]. - Electro-optics revenues grew by double digits sequentially in the last reported quarter, with further gains anticipated as AI adoption accelerates [10].