Marvell Technology (NasdaqGS:MRVL) Conference Transcript

Marvell Technology Conference Call Summary Company Overview - Company: Marvell Technology (NasdaqGS:MRVL) - Date of Conference Call: September 24, 2025 Key Industry Insights - Industry: Semiconductor and Data Center Technology - Growth Drivers: Strong demand for accelerated compute and AI technologies, particularly in data centers Core Points and Arguments 1. Data Center Business Growth: Marvell's data center business has increased threefold since 2023, now accounting for 75% of total revenues [4][12] 2. AI Franchise Expansion: The AI segment has grown over six times since 2023, surpassing previous targets set for 2024 [4][12] 3. Custom XPU Program Concerns: Investors expressed concerns about potential revenue gaps in the custom XPU business due to competition. However, Marvell does not anticipate a revenue hole and expects growth in this segment [4][12][38] 4. Partnership with AWS: A five-year agreement with Amazon Web Services (AWS) includes collaboration on custom AI silicon and networking products, which is progressing well [11][12] 5. CapEx Growth Projections: Expected capital expenditures (CapEx) growth of approximately 18% for the next year, with potential for upward adjustments [14][15] 6. Optics Business Performance: The optics segment, which constitutes 50% of the data center business, is expected to outperform CapEx growth, driven by strong demand for 800G and 1.6T products [30][58] 7. Custom Business Growth: The custom business is projected to grow in line with CapEx, with a baseline estimate of $1.5 billion, effectively doubling from the previous year [18][19] 8. Switching Business Expansion: The switching segment is anticipated to grow significantly, with the introduction of the 51.2T Teralynx 10 platform, which is expected to outperform initial revenue projections [32][77] Additional Important Insights 1. Long-term Outlook: Marvell is optimistic about growth in 2027 and 2028, with new custom programs and contributions from optics and switching expected to drive acceleration [50][51] 2. Competitive Landscape: Marvell has maintained a strong position in the optical market, with significant growth in the DSP franchise since the acquisition of Inphi [60][61] 3. Market Positioning: The company emphasizes its leadership in optical technology and its ability to innovate and adapt to market demands, particularly in the context of AI and cloud computing [62][64] 4. Future Product Development: Marvell is actively engaged in developing new products for scale-up networking, including retimers and AECs, which are expected to contribute to future revenue growth [70][73] This summary encapsulates the key points discussed during the Marvell Technology conference call, highlighting the company's growth trajectory, strategic partnerships, and market positioning within the semiconductor and data center industry.