Marvell Technology(US:MRVL)2025-08-31 16:21Summary of Marvell Technology Inc. (MRVL) Conference Call Company Overview - Company: Marvell Technology Inc. (MRVL) - Industry: Semiconductors, specifically focusing on Datacenter, Networking, and AI technologies Key Financial Results - Total Revenue: Reported at $2.01 billion, in line with expectations from Goldman Sachs (GS) and the Street [2] - Gross Margin: 59.4%, slightly below GS's expectation of 59.7% and the Street's 59.5% [2] - Operating Margin: 34.8%, just below GS's 35.3% and the Street's 34.9% [2] - Operating EPS: $0.67, matching GS and the Street [2] - Datacenter Revenue: $1.49 billion, in line with GS and the Street [2] - Enterprise Networking Revenue: $194 million, above GS's $186 million and the Street's $185 million [2] - Carrier Infrastructure Revenue: $130 million, below GS's $145 million and the Street's $147 million [2] - Consumer Revenue: $116 million, significantly above GS's $95 million and the Street's $90 million [2] - Automotive/Industrial Revenue: $76 million, in line with expectations [2] Datacenter Trends - QoQ Growth: Datacenter business increased by 3%, driven by the electro-optics segment [2] - 3Q Guidance: Expected to be flat QoQ, with double-digit growth in optics and connectivity, offset by a decline in custom silicon revenue [2] - 4Q Outlook: Anticipated recovery in custom silicon business, with overall growth expected in the second half of the year [2] Revenue Guidance and Estimates - 3Q Revenue Guidance: Midpoint of $2.06 billion, in line with GS's $2.13 billion and the Street's $2.10 billion [4] - Gross Margin Guidance: Expected at 59.75%, slightly above GS's 59.8% and the Street's 59.5% [4] - Non-GAAP EPS Guidance: $0.74 at the midpoint, just above GS and the Street's $0.72 [4] - EPS Estimates: Trimmed by an average of 5% due to lower revenue and gross margin expectations [5] Price Target and Risks - 12-Month Price Target: Adjusted to $72 from $75, reflecting a 24x P/E multiple applied to normalized EPS of $3.00 [6] - Key Upside Risks: Stronger-than-expected ramp in custom compute and recovery in traditional businesses [6] - Key Downside Risks: Slowdown in AI spending and potential share loss in custom compute [6] Investment Rating - Current Rating: Neutral, with limited traction expected through 2026 due to content loss with Amazon and upcoming product ramp with Microsoft [7] - Future Outlook: More constructive stance possible with improved visibility into AI revenue trajectory [7] Additional Insights - Segment Revenue Reporting: Starting in 3Q, all segment revenues excluding Datacenter will be reported on a consolidated basis [4] - Competitive Landscape: High competitive intensity at key customer accounts may dampen sentiment [2] This summary encapsulates the key points from the conference call regarding Marvell Technology Inc., highlighting financial performance, market trends, guidance, and investment outlook.