Marvell reported strong fiscal third-quarter results with a 6.87% revenue increase, driven by record data center revenue, primarily from custom AI silicon. The company forecasts continued growth in the fourth quarter, with revenue expected to increase by 19% quarterly and 26% year-over-year. Analysts predict that AI sales will exceed expectations, potentially reaching US$1.6 billion.
According to the latest financial results, Marvell reported sales of US$1.52 billion for the fiscal third quarter ending November 2, up 6.87% from a year ago. However, its loss widened from US$164.3 million to US$311.6 million during the period.
According to Marvell, in the data center end-market for the third quarter, the company achieved record revenue of US$1.1 billion, marking a 98% year-over-year growth and a 25% sequential increase. These robust results were driven by a significant surge in the custom AI silicon ramp as customers experienced increasing demand for the differentiated capabilities offered by the new custom AI chips.
Marvell chairman and CEO Matt Murphy stated that for the fourth quarter, the company forecasts another 19% quarterly revenue growth at the midpoint of guidance. On a year-over-year basis, they anticipate revenue growth will accelerate significantly to 26%, heralding the beginning of a new era of growth for the company.
This is primarily driven by Marvell's custom AI silicon programs, now in volume production, coupled with robust ongoing demand from cloud customers for its market-leading interconnect products. Murphy expressed optimism for a strong finish to the fiscal year and predicted that substantial momentum will continue into fiscal 2026.
Regarding the financial outlook for the fourth quarter of fiscal 2025, Marvell projects net revenues to fluctuate around US$1.8 billion with a margin of plus or minus 5%. The semiconductor solutions company anticipates a GAAP gross margin of approximately 50%, maintaining a steady performance against market variances.
In managing its operational expenditures, Marvell forecasts GAAP operating expenses to be around US$710 million. This projection reflects the company's strategic allocation of resources aimed at sustaining its competitive edge while investing in growth-oriented initiatives.
According to Bloomberg Intelligence, Marvell's third and fourth-quarter sales beats, coupled with announcements of engagement with AWS, suggest a quicker ramp-up in custom-silicon production and potentially more victories for its AI-connectivity solutions. It is believed that AI sales will exceed the guided amount of US$1.5 billion, potentially reaching US$1.6 billion or more.
Marvell financial summary (US$m) | ||||||
Financial | 3QFY24 | 4QFY24 | 1QFY25 | 2QFY25 | 3QFY25 | Y/Y for 3QFY25 (%) |
Sales | 1,418.60 | 1,426.50 | 1,160.90 | 1,272.90 | 1,516.10 | 6.87 |
Gross profit | 551.2 | 664.1 | 527.8 | 587.6 | 349.4 | -36.61 |
Operating income | -146.3 | -33.3 | -152.3 | -100.4 | -702.8 | -380.38 |
Profit | -164.3 | -392.7 | -215.6 | -193.3 | -676.3 | -311.63 |
Source: Marvell, December 2024
Marvell sales by segment (US$m) | ||||||
Segment | 3QFY24 | 4QFY24 | 1QFY25 | 2QFY25 | 3QFY25 | Y/Y for 3QFY25 (%) |
Data Center | 555.8 | 765.3 | 816.4 | 880.9 | 1101.1 | 98.11 |
Carrier Infrastructure | 316.5 | 170 | 71.8 | 75.9 | 150.9 | -52.32 |
Enterprise Networking | 271.1 | 265 | 153.1 | 151 | 150.9 | -67.21 |
Consumer | 168.7 | 143.9 | 42 | 88.9 | 88.9 | -54.83 |
Automotive / Industrial | 106.5 | 82.3 | 77.6 | 76.2 | 76.2 | -28.45 |
Source: Marvell, December 2024
