Key Takeaways Marvell Technology reported Q3 revenues of $2.08B, driven by data center, networking and carrier gains.Data center sales rose 37.8% to $1.52B, supported by custom XPU silicon and electro-optic products.The Celestial AI acquisition aims to strengthen Marvell Technology in next-gen optical interconnects.Marvell Technology Inc. (MRVL) — a leading fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits for artificial intelligence AI) infra ...

Core Insights - Credo Technology Group Holding Ltd. (CRDO) reported strong second-quarter fiscal 2026 results, driven by the rapid growth of its Active Electrical Cable (AEC) business and increasing traction with major hyperscale customers [1][2] Financial Performance - In the fiscal second quarter, CRDO achieved revenues of $268 million, reflecting a 20% sequential increase and a remarkable 272% year-over-year growth [2][11] - The company anticipates a 27% sequential revenue increase for the fiscal third quarter and projects fiscal 2026 revenues to grow over 170% year over year [6][11] Customer Base and Market Dynamics - Four hyperscalers contributed more than 10% each to total revenues, with a fifth hyperscaler beginning to generate initial revenues, indicating strong adoption of CRDO's AEC solutions [3][11] - The emergence of a fifth hyperscaler and strengthened customer forecasts mark a significant inflection point for the company [3][6] Product and Technology Advancements - AECs have become the standard for inter-rack connectivity, replacing optical connections up to 7 meters, offering up to 1,000 times more reliability and 50% lower power consumption compared to optical solutions [4] - CRDO's architecture is designed to meet the critical demands of AI clusters, focusing on reliability, signal integrity, latency, power efficiency, and total cost of ownership [5] Competitive Landscape - Broadcom and Marvell Technology are also making significant strides in the AI space, with Broadcom securing over $10 billion in orders for AI racks and Marvell reporting a 37% year-over-year revenue increase [8][10] - Marvell's acquisition of Celestial AI, which specializes in Photonic Fabric technology, is expected to enhance its capabilities in optical interconnects [10][12] Valuation and Market Performance - CRDO is currently trading at a forward 12-month Price/Sales ratio of 28.87, significantly higher than the Electronic-Semiconductors sector's multiple of 7.9 [13] - The company's shares have increased by 40.6% in the past month, outperforming the Electronics-Semiconductors industry's growth of 25.4% [14]

Marvell Technology (NasdaqGS:MRVL) Q3 2026 Earnings Call December 02, 2025 04:45 PM ET Company ParticipantsChris Caso - Managing DiectorWillem Meintjes - CFORoss Seymore - Managing DirectorAshish Saran - SVP of Investor RelationsMatt Murphy - Chairman and CEOHarlan Sur - Executive Director and Equity ResearchBlayne Curtis - Managing Director and Equity ResearchConference Call ParticipantsChristopher Rolland - Semiconductor AnalystTore Svanberg - Managing Director and Senior Semiconductor AnalystHarsh Kumar ...

Financial Data and Key Metrics Changes - For the third quarter of fiscal 2026, Marvell reported record revenue of $2.075 billion, reflecting a 3% sequential increase and a 37% year-over-year growth [6][39] - Non-GAAP earnings per share were $0.76, exceeding guidance by $0.02, with a year-over-year growth of 77% [6][40] - GAAP gross margin was 51.6%, while non-GAAP gross margin was 59.7%, an increase of 30 basis points sequentially [39][40] - Cash flow from operations reached a record $582 million, growing approximately $121 million from the prior quarter [41] Business Line Data and Key Metrics Changes - Data center revenue was $1.52 billion, representing 2% sequential growth and 38% year-over-year growth, contributing 73% of total revenue [19][39] - Communications and other end market revenue was $557 million, growing 8% sequentially and 34% year-over-year [33][39] - Excluding the divested automotive Ethernet business, communications revenue growth would be approximately 20% sequentially and 50% year-over-year [33] Market Data and Key Metrics Changes - The company expects total revenue for the fourth quarter to be around $2.2 billion, representing a 6% sequential and 21% year-over-year growth [35][42] - Data center revenue is projected to grow year-over-year by more than 25% in fiscal 2027, while communications and other end market is expected to grow by 10% [19][34] Company Strategy and Development Direction - Marvell announced the acquisition of Celestial AI, aimed at enhancing its data center portfolio with disruptive photonic fabric technology [8][9] - The acquisition is expected to close in the first quarter of next year and is anticipated to generate meaningful revenue contributions starting in the second half of fiscal 2028 [16][44] - The company is focusing on data center growth, divesting non-core businesses, and investing in high-growth areas such as AI and optical interconnects [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in the data center market, driven by strong demand for AI and cloud infrastructure [17][36] - The outlook for fiscal 2027 is stronger than previously expected, with anticipated growth in interconnect and custom businesses [17][19] - Management highlighted the importance of strategic acquisitions and product innovation in driving future growth [37][44] Other Important Information - Marvell executed a $1 billion accelerated stock repurchase program and repurchased $300 million of stock through its ongoing buyback program [35][41] - The company has a strong balance sheet with cash and cash equivalents of $2.7 billion, reflecting robust operating cash flow [41] Q&A Session Summary Question: Revenue expectations for next year - Analyst inquired if the implied revenue for next year is around $10 billion and how it aligns with long-term targets [48] - Management confirmed the $10 billion target is motivational and based on organic growth without M&A contributions [49] Question: Update on sub-3-nanometer design win pipeline - Analyst asked for an update on the design win pipeline for sub-3-nanometer products [58] - Management indicated strong visibility and execution on design programs, with significant product ramps expected [60] Question: Revenue targets for Celestial AI - Analyst questioned if the $500 million and $1 billion targets for Celestial AI include PFLink products and potential memory businesses [65] - Management clarified that the targets encompass all of Celestial AI's activities, with initial revenue driven by PF chiplets [66] Question: Breadth of revenue stream from Celestial AI - Analyst asked about the customer base for Celestial AI's revenue ramp [67] - Management noted strong engagement across the industry, with a tier-one hyperscaler as a key partner [68] Question: Growth rate for custom business - Analyst sought clarification on the growth rate for the custom business in fiscal 2027 [75] - Management indicated expectations for at least 20% growth next year, with potential for higher rates in subsequent years [75]

SANTA CLARA, Calif.--(BUSINESS WIRE)--Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today announced it has entered into a definitive agreement to acquire Celestial AI, a pioneer of a disruptive Photonic Fabric technology platform purpose-built for scale-up optical interconnect. This strategic acquisition represents a transformational milestone in accelerating the company's connectivity strategy for next-generation AI and cloud data centers. AI. ...