Key Takeaways ALAB revenues jumped 149.7% year over year in Q2 2025, driven by Aries, Taurus and Scorpio demand.Scorpio surpassed 10% of sales, marking the fastest ramping product line in Astera Labs' history.ALAB guides Q3 2025 revenues of $203M to $210M, projecting 6% to 9% sequential growth.Astera Labs (ALAB) is benefiting from strong demand for Aries, Taurus and Scorpio product families. Second-quarter 2025 revenues jumped 149.7% year over year and 20% sequentially, driven by signal conditioning (primar ...

Core Insights - Credo Technology Group Holding Ltd (CRDO) is experiencing significant growth, with fiscal 2025 revenues reaching $436.8 million, a 126% year-over-year increase, driven by high demand for energy-efficient connectivity solutions in AI data centers [1][8] - The company anticipates revenues for fiscal 2026 to exceed $800 million, indicating more than 85% year-over-year growth, supported by the transition to 100 gig per lane solutions and increased adoption of Optical DSPs [5][8] Company Performance - In the fourth quarter of fiscal 2025, CRDO's revenues surged 179.7% year-over-year to $170 million, primarily due to strong performance in HiWire Active Electrical Cables and customer momentum in PCIe and Ethernet retimers [1][8] - For the first quarter of fiscal 2026, CRDO projects revenues between $185 million and $195 million, suggesting a 12% increase at the midpoint [5] Product Portfolio - CRDO's focus on low-power, high-bandwidth interconnects, including HiWire AECs, Optical DSPs, and SerDes solutions, positions it well within the AI infrastructure market [2][3] - The company is witnessing growing interest in its PCIe retimers and Ethernet retimers, which are crucial for scale-out networks in AI servers [3] Market Dynamics - The demand for AI infrastructure is driving CRDO's growth, with hyperscaler customers increasingly seeking advanced connectivity solutions [1][5] - Competitors like Marvell Technology and Broadcom are also capitalizing on the AI data center trend, with Marvell's data center revenues increasing by 76% year-over-year and Broadcom projecting a 21% year-over-year revenue increase for the third quarter of fiscal 2025 [6][7] Valuation Metrics - CRDO's shares have surged 209.4% over the past year, significantly outperforming the Electronics-Semiconductors industry's growth of 20.8% [9] - The company is currently trading at a price/book ratio of 25.25, which is higher than the sector's average of 9.62 [10]

Financial Data and Key Metrics Changes - Marvell reported record revenue of $1,895 million for the first quarter of fiscal year 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth [4][24] - Non-GAAP earnings per diluted share reached $0.62, representing a year-over-year growth of 158%, which is more than double the pace of revenue growth [24][26] - GAAP gross margin was 50.3%, while non-GAAP gross margin was 59.8% [24][25] Business Line Data and Key Metrics Changes - Data center revenue was $1,440 million, growing 5% sequentially and 76% year-over-year, driven by AI demand [7][24] - Enterprise networking revenue was $178 million, and carrier infrastructure revenue totaled $138 million, collectively growing by 14% sequentially [17] - Consumer revenue was $63 million, representing a 29% sequential decline, but is expected to grow by approximately 50% sequentially in the next quarter [18] - Automotive and industrial revenue was $76 million, declining by 12% sequentially, with expectations of flat revenue in the next quarter [18] Market Data and Key Metrics Changes - The data center end market contributed 76% of total revenue, indicating its dominance in Marvell's business [24] - The company anticipates continued growth in the data center market, particularly driven by custom AI silicon programs [19][22] Company Strategy and Development Direction - Marvell is focusing on expanding its custom silicon business, particularly in AI infrastructure, and plans to host an investor event to showcase its technology [20][22] - The company announced the sale of its Automotive Ethernet business to Infineon for $2,500 million, which will provide additional flexibility in capital allocation [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic uncertainties, with expectations for strong demand in AI and data center markets [19][22] - The company is closely monitoring the broader environment to assess potential long-term impacts on its business [19] Other Important Information - Marvell significantly increased stock repurchases to $340 million in the first quarter, up from $200 million in the prior quarter [5][27] - The company expects second quarter revenue to be around $2,000 million, representing a 57% year-over-year growth [6][28] Q&A Session Summary Question: What is the direction of content in next-generation programs? - Management indicated that they are the incumbent supplier for AI XPUs and expect revenue to continue to grow on a multiyear basis with their customers [33][36] Question: How does Marvell plan to support a broader customer base? - Management confirmed that they have the capacity to expand their portfolio and engage with multiple customers, particularly in the AI and data center space [41][42] Question: Can you discuss Marvell's service technology for 200 gig SerDes? - Management stated that their SerDes technology remains best in class, with strong performance and a solid roadmap for future developments [47][48] Question: Can you break down data center revenue and AI's contribution? - Management noted that AI has become the majority of data center revenue and expects this trend to continue, with strong growth anticipated in custom silicon [55][56] Question: What are the expectations for the second half of the year? - Management expects growth across all business segments, driven by strong demand in AI and a recovery in enterprise networking and carrier infrastructure [66][67] Question: Can you provide insights on the optical business and market share? - Management confirmed strong market share in the 800 gig segment and expects continued growth in the optical business, particularly with the transition to 1.6T [116][120]

Core Viewpoint - Marvell Technology, Inc. has experienced significant stock volatility, losing 17.3% over the past year, which is a stark contrast to the 11.5% growth in the Zacks Electronics - Semiconductors industry [1][4]. Market Performance - The decline in Marvell's stock price is attributed to broader market weaknesses, including a sell-off in tech stocks due to rising trade tensions, particularly concerning the U.S. government's actions towards China [4][5]. - Approximately 43% of Marvell's total revenues for fiscal 2025 are generated from the Chinese market, making geopolitical tensions a significant concern for the company [4][5]. Growth Opportunities - Marvell is benefiting from the increasing demand for custom silicon in AI workloads, with AI-based revenues exceeding the $1.5 billion target in fiscal 2025 and expectations to surpass $2.5 billion in fiscal 2026 [6][10]. - The company is positioned as a leader in high-performance computing, supported by collaborations with major hyperscalers, which are expected to drive revenue growth from custom XPU solutions in fiscal 2027 and beyond [7][10]. Technological Advancements - Marvell is capitalizing on the shift towards enhanced networking and interconnect products in data centers, introducing high-speed optical interconnects that reduce power usage by 20% [8][9]. - The transition from copper to optical connectivity in AI infrastructure presents a substantial growth opportunity, with Marvell's Co-Packaged Optics technology and 2nm silicon IP development reinforcing its market position [9]. Financial Outlook - The Zacks Consensus Estimate for Marvell's 2026 revenues is projected at $8.3 billion, indicating a year-over-year growth of 43.8%, with earnings expected to reach $2.76 per share, reflecting a 75.8% increase [10]. - Marvell has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 4.3% [10]. Strategic Collaborations - Marvell has established partnerships with industry leaders like NVIDIA, Juniper Networks, and Coherent Corp. to develop high-speed networking technology tailored for AI workloads [11][12][13]. - These collaborations aim to integrate Marvell's optical interconnect solutions with NVIDIA's AI technology and create networking solutions that support AI, cloud, and 5G applications [12][13]. Valuation - The recent drop in stock price has resulted in a forward 12-month price-to-sales (P/S) multiple of 5.59X, significantly lower than its one-year median of 10.16X and the industry average of 6.81X, making it an attractive investment option [14]. Conclusion - Despite facing near-term challenges, Marvell's strong fundamentals and position in the data center and high-speed networking market suggest that the stock remains a viable hold for investors [17][18].

Core Viewpoint - Micron Technology and Marvell Technology are both positioned to benefit from the AI infrastructure boom, but they operate in different segments of the semiconductor market, with Micron focusing on memory technologies and Marvell on custom silicon and data center connectivity [1][2]. Group 1: Micron Technology - Micron is experiencing strong demand for high-bandwidth memory (HBM) and DRAM products due to the surge in AI workloads, with its HBM3E products noted for their power efficiency and bandwidth [3]. - In January 2025, NVIDIA announced Micron as a key supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing Micron's role in the HBM market [4]. - Micron's second quarter of fiscal 2025 saw a decline in non-GAAP gross margin to 37.9%, down from 39.5% in the previous quarter, attributed to weaker NAND flash pricing and startup costs at a new DRAM facility [5]. - For the third quarter, Micron guided a gross margin of 36.5%, indicating ongoing margin pressures despite record sales in its HBM segment [6]. - The Zacks Consensus Estimate for Micron's 2025 sales and EPS suggests year-over-year growth of 41.9% and 426.9%, respectively, but EPS estimates have been volatile over the past 60 days [16]. Group 2: Marvell Technology - Marvell is capitalizing on the increasing demand for custom silicon from hyperscalers, exceeding its fiscal 2025 AI revenue target of $1.5 billion and expecting to surpass $2.5 billion in fiscal 2026 [7]. - The company reported a 27% year-over-year increase in total revenues and a 30% rise in non-GAAP EPS for the fourth quarter of fiscal 2025 [8]. - Marvell's non-GAAP gross margin has remained above 60% for several years, with a forecast of 60% for the first quarter of fiscal 2026, indicating strong operational efficiency [11]. - The Zacks Consensus Estimate for Marvell's 2026 sales and EPS implies a year-over-year increase of 43.8% and 75.8%, respectively, with consistent upward revisions over the past 60 days [20]. Group 3: Stock Performance and Valuation - Over the past year, Micron shares have decreased by 47.4%, compared to a 31.3% decline in Marvell shares [13]. - Micron is trading at a forward earnings multiple of 1.71X, significantly below its three-year median of 3.22X, while Marvell's forward sales multiple is at 4.99X, lower than its median of 8.20X [14]. - Marvell's premium valuation reflects high growth expectations and robust profitability, while Micron's declining profitability raises concerns about its ability to leverage the AI market [15].