'ASIC Giant' Marvell Sets Record Quarterly Revenue, Raises Guidance Again, CEO Says Data Center Business Is 'On Fire'
Marvell Technology, a leading player in custom AI chips and data center connectivity, reported record revenue for its fiscal Q1 2027, driven by explosive demand in its data center business. Revenue reached $2.418 billion, slightly surpassing expectations, though GAAP net income fell year-over-year due to acquisition-related costs. Crucially, data center revenue hit $1.83 billion, making up 76% of the total and growing 27% YoY. The company significantly raised its full-year and next-year guidance, citing "exceptionally strong AI-related orders." Revenue is now projected at ~$11.5 billion for FY2027 and ~$16.5 billion for FY2028.
CEO Matt Murphy emphasized that growth in the data center segment is accelerating. The AI Interconnect business, now expected to grow over 70% annually, saw its forecast lifted again due to rising network demands in complex AI models. Additionally, Marvell's custom chip (XPU) business is on a steep growth path, with FY2028 revenue anticipated to double and a target of over $10 billion by FY2029. The company also expanded its strategic collaboration with NVIDIA, focusing on silicon photonics, system integration, and AI-RAN solutions. To secure supply for surging demand, Marvell plans about $1 billion in supplier prepayments this fiscal year, highlighting its long-term capacity planning. Despite the strong results, the stock dipped slightly in after-hours trading.
marsbit05/28 04:09
