Marvell Technology Conference Summary Company Overview - **Company**: Marvell Technology (NasdaqGS:MRVL) - **Date**: January 06, 2026 - **Key Speakers**: Matt Murphy (CEO and Chairman), Ashish Saran (SVP of Investor Relations) Industry Insights - **Sector**: Semiconductor, specifically focusing on data center infrastructure and AI-driven technologies - **Market Trends**: - Strong growth in cloud data center capital expenditures (CapEx) expected to continue, with top hyperscalers and cloud service providers (CSPs) projected to grow CapEx by 50-55% in 2026, down from 65% in 2025 [6][7] - Marvell's data center business has tripled since 2023, driven by demand for AI and accelerated compute solutions [12] Core Company Insights - **Growth Projections**: - Marvell anticipates over 40% year-over-year growth for the current fiscal year, with a potential 20% growth in custom business and 15% in other segments [13][14][15] - The company expects data center revenue to double in 2027 compared to 2026, with a conservative estimate of 40% growth in data center revenue [20] - **Order Backlog and Visibility**: - Marvell has a strong order backlog, with visibility extending into 2027, indicating robust demand for its products [7][10] - The company has secured purchase orders for all of 2026, supporting its growth outlook [66] Product and Technology Developments - **Custom ASICs**: - Marvell is the second-largest custom ASIC supplier globally, with a focus on AI-based compute workloads [60] - The company has over 20 XPU and XPU-attached custom chip programs in its pipeline, indicating strong engagement with major hyperscalers [65] - **Networking Solutions**: - Marvell is expanding its scale-up networking capabilities through acquisitions (e.g., Celestial and Xconn Technologies) and organic investments [23][29] - The company is positioned to offer a complete solution in scale-up networking, integrating both copper and optical technologies [31] - **Optical and Ethernet Switching**: - Marvell's Teralynx switching platform is expected to drive significant revenue growth, with projections of $500 million in switching revenue this year [50][52] - The company is ramping its 51.2T Teralynx 10 switching platform, which is competitive with Broadcom's offerings [50] Supply Chain Management - **Strategic Partnerships**: - Marvell has restructured its supply chain to focus on long-term strategic partnerships, mitigating risks associated with supply constraints [75][76] - The company has invested in substrate supply and backend processes to ensure adequate supply through 2030 and beyond [75] Key Takeaways - Marvell is well-positioned to capitalize on the growing demand for data center infrastructure driven by AI and accelerated compute technologies - The company’s proactive approach to supply chain management and strategic acquisitions enhances its competitive edge in the semiconductor market - Continued investment in R&D and a robust product pipeline are expected to support Marvell's growth trajectory in the coming years [12][60][76]

Vi e w p o i n t | See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations. 02 Jan 2026 10:21:57 ET │ 14 pages North America Hardware & Storage Key Focus Items At CES: Hardware Demand Amidst Rising Component Prices; AI Demand Momentum CITI'S TAKE As we approach CES 2026, the hardware landscape continues to exhibit positive demand in datacenter infrastructure, driven by AI-related workloads, alongside more a more muted environment in devices markets given spending ...

Group 1 - Cisco Systems, Inc. has seen a significant change in its valuation, dropping from a forward price to earnings multiple of over 130 in 2000 to less than 19 times forward earnings currently, indicating a more stable and mature company profile [1] - The company is recognized for creating networking, security, and collaboration tools that help organizations maintain connectivity and security [2] - Despite its potential as an investment, there are opinions suggesting that certain AI stocks may offer greater upside potential and carry less downside risk compared to Cisco [2]

Core Viewpoint - Morgan Stanley has raised its S&P 500 year-end target for 2026 to 7,800, driven by strong earnings growth and AI-enhanced efficiency gains [1][2] Group 1: Market Outlook - The market's positive shift began in April 2025, reversing previous negative growth assumptions due to supportive government policies [2] - The government's "Big Beautiful bill" is expected to enhance capital expenditure and provide tax benefits for consumers in the first half of 2026 [2] - The Federal Reserve's actions are also contributing to market momentum [2] Group 2: Sector Performance - The market is anticipated to broaden beyond a few major names, with potential in sectors like consumer discretionary, underperforming financials, transports, and consumer products [3] - These sectors have low earnings multiples, which may lead to earnings surprises and subsequent multiple expansion [3] Group 3: Stock Recommendations - A list of 11 stocks has been curated based on analyst ratings and hedge fund sentiment, focusing on those with over 25% upside potential [6][7] - The methodology includes analyzing top holdings from quality factor ETFs and ranking them by analyst upside potential [6] Group 4: Company Highlights - **NVIDIA Corporation (NASDAQ:NVDA)**: - Hedge fund holders: 234, Analyst upside potential: 25.06% [8] - Recent partnerships with Mistral AI and AWS enhance its AI capabilities and cloud infrastructure [10][11] - **The Home Depot, Inc. (NYSE:HD)**: - Hedge fund holders: 104, Analyst upside potential: 25.93% [12] - Mixed opinions from analysts following Q3 2026 results, with revenue growth of 2.82% year-over-year to $41.35 billion, but EPS of $3.74 fell short of consensus [13][14] - The company is positioned for market share gains despite recent performance challenges [14][15]

Core Viewpoint - Hewlett Packard Enterprise (HPE) shares fell over 9% intra-day following a weaker-than-expected revenue forecast, attributed to softness in AI server and hybrid cloud businesses as customers delayed orders until the latter half of next year [1] Financial Performance - In the fiscal fourth quarter, HPE reported adjusted earnings of $0.62 per share, slightly above the prior-year period and exceeding its guidance range of $0.56 to $0.60 [2] - Revenue increased by 14% year-over-year to $9.7 billion, but fell short of analyst expectations of $9.9 billion [2] - Server sales decreased by 5% to $4.46 billion, while hybrid cloud revenue declined by 12% to $1.41 billion [2] Business Segments - The AI server business, reliant on advanced Nvidia chips, experienced delays as customers postponed deployments [3] - Networking revenue surged by 150% to $2.8 billion, driven by HPE's recent acquisition of Juniper Networks [3] Future Outlook - For the fiscal first quarter, HPE projected adjusted EPS of $0.57 to $0.61 on revenue of $9.0 billion to $9.4 billion, below Wall Street estimates of $9.91 billion in sales but slightly above expectations for EPS of $0.54 [4] - HPE raised its full-year fiscal 2026 outlook, guiding adjusted diluted EPS between $2.25 and $2.45, and increasing the midpoint of its free cash flow forecast to $1.7 billion to $2.0 billion [4]

Hewlett Packard Enterprise (HPE) has reported revenue of $9.7bn for the fourth quarter ended 31 October 2025 (Q4 2025), representing a 14% increase compared to $8.4bn during the same period last year. The company’s annualised revenue run-rate (ARR) rose to $3.2bn, an increase of 63% year-on-year in actual dollars and 62% in constant currency. HPE has reported a loss from operations of $8m for the quarter, contrasting with earnings of $693m in the same quarter a year ago. Cash flow from operations was $2 ...

Core Insights - Dell Technologies Inc. is gaining attention in the AI sector, with Goldman Sachs raising its price target from $175 to $185 while maintaining a "Buy" rating due to improved fiscal 2026 earnings guidance and stronger AI server demand [1][2] Financial Performance - Dell raised its fiscal 2026 EPS outlook to a range of $9.82 to $10.02, driven by stronger-than-expected EBIT growth [2] - The Infrastructure Solutions Group (ISG) segment exceeded expectations and improved margins, with AI server demand increasing among Tier 2 CSPs and higher-margin neocloud and sovereign customers [2][3] AI Server Demand - AI server orders surged to $12.3 billion compared to $5.6 billion in fiscal Q2 2026, with margins also improving sequentially [3] - Dell has increased its fiscal 2026 ISG revenue outlook to the mid-to-high 30% range and raised its fiscal 2026 AI server outlook by $5 billion to $25 billion [3] CSG Segment Performance - The Client Solutions Group (CSG) revenue and margins fell short due to a 7% year-over-year decline in consumer revenue, although commercial revenue grew by 5% year-over-year [4] - Dell anticipates continued benefits from the ongoing PC refresh cycle and Windows 11 upgrades [4] Supply Chain Management - Dell has reassured investors regarding commodity inflation, stating it can recover two-thirds of cost increases within 90 days due to strong supply-chain leverage [4]

Core Viewpoint - Dell Technologies Inc. is highlighted as a significant AI stock to watch, with BofA Securities reducing its price target to $160.00 from $170.00 while maintaining a Buy rating ahead of the fiscal third-quarter earnings report [1] Group 1: Financial Performance and Forecasts - BofA anticipates near-term margin pressure for Dell due to rising memory costs, particularly in DRAM and NAND pricing, predicting a decline in operating margins for both the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) [2][3] - The firm forecasts a -129 basis points impact on total gross margin, operating margin, and earnings per share (EPS) for fiscal 2027, with specific declines of -11 basis points for ISG and -184 basis points for CSG margins [3] - Despite these pressures, BofA expects Dell's Q3 results to align with guidance and market estimates, attributing minimal impact from memory pricing due to inventory timing [3] Group 2: Strategic Responses - Dell is likely to manage the impact of rising memory costs through pricing adjustments and operational expense (Opex) reductions, with projected impacts of -56 basis points and -$0.01 on operating margins and EPS for fiscal Q4 [4] - The company is expected to maintain conservative guidance despite cost pressures, reflecting a strategic approach to navigate the current market challenges [4] Group 3: Market Context - The analysis emphasizes the early stages of AI adoption as a potential tailwind for Dell, suggesting that the company could benefit from this trend despite the current challenges posed by memory cost increases [4]

Core Insights - Cisco Systems (CSCO) reported first-quarter fiscal 2026 non-GAAP earnings of $1 per share, exceeding the Zacks Consensus Estimate by 2.04% and reflecting a year-over-year increase of 9.9% [1] - Revenues reached $14.88 billion, surpassing the Zacks Consensus Estimate by 0.71%, with a year-over-year growth of 7.5% [2] Financial Performance - Total Annual Recurring Revenues (ARR) were $31.4 billion, up 5%, with product ARR growth of 7% [2] - Total subscription revenues amounted to $8 billion, representing 54% of Cisco's total revenues [2] - Total software revenue increased by 3% year over year to $5.7 billion [2] - Product revenues in Q1 were $11.08 billion, accounting for 74.4% of total revenues, with a year-over-year increase of 9.5% [5] - Service revenues were $3.81 billion, making up 25.6% of total revenues, and increased by 2.1% year over year [5] Segment Performance - Networking revenues were $7.77 billion, up 15% year over year [4] - Security revenues decreased by 2% to $1.98 billion [4] - Collaboration revenues fell by 3% to $1.06 billion [4] - Observability revenues increased by 6% to $274 million [4] Geographic Performance - Americas' revenues grew by 9% year over year to $8.99 billion [6] - EMEA revenues climbed by 5% year over year to $3.78 billion [6] - APJC revenues also increased by 5% year over year to $2.11 billion [6] Operating Metrics - Non-GAAP gross margin was 68.1%, expanding by 120 basis points year over year [7] - Non-GAAP operating income was $5.12 billion, reflecting an 8.4% year-over-year increase [8] - Operating margin improved by 30 basis points year over year to 34.4% [8] Balance Sheet and Cash Flow - As of October 25, 2025, cash and cash equivalents totaled $15.7 billion, down from $16.1 billion [9] - Total debt remained stable at $28.1 billion [9] - Cisco returned $3.6 billion to stockholders through share buybacks and dividends [10] Guidance - For Q2 fiscal 2026, Cisco expects non-GAAP earnings between $1.01 and $1.03 per share, with revenues projected between $15 billion and $15.2 billion [11] - For the full fiscal 2026, non-GAAP earnings are expected to be between $4.08 and $4.14 per share, with revenues anticipated between $60.2 billion and $61 billion [12]

Core Insights - Cisco Systems reported $14.88 billion in revenue for the quarter ended October 2025, marking a year-over-year increase of 7.5% and an EPS of $1.00 compared to $0.91 a year ago, exceeding the Zacks Consensus Estimate of $14.78 billion by 0.71% [1] Revenue Breakdown - Revenue from Networking products was $7.77 billion, surpassing the estimated $7.34 billion by analysts, reflecting a 15% increase year-over-year [4] - Revenue from Observability products was $274 million, slightly below the estimated $288.48 million, with a year-over-year increase of 6.2% [4] - Services revenue reached $3.81 billion, aligning closely with the $3.8 billion average estimate, representing a 2.1% year-over-year increase [4] - Security product revenue was $1.98 billion, falling short of the $2.24 billion estimate, indicating a year-over-year decline of 1.8% [4] - Total Product revenue was $11.08 billion, exceeding the $10.95 billion estimate, with a year-over-year growth of 9.5% [4] - Collaboration product revenue was $1.06 billion, below the $1.09 billion estimate, reflecting a year-over-year decrease of 2.8% [4] Gross Margin Insights - Non-GAAP Gross Margin for Services was reported at $2.69 billion, matching the average estimate [4] - Non-GAAP Gross Margin for Products was $7.45 billion, slightly above the estimated $7.38 billion [4] Stock Performance - Cisco shares returned +4.4% over the past month, compared to the Zacks S&P 500 composite's +4.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]