Marvell Forecasts Stronger Q2 on AI Chip Demand
Okay, so check this out. Marvell Technology, you know, MRVL, they just gave us a peek at what they think is gonna happen in the next few months, like their second quarter, and it looks pretty good! They're actually expecting to make more money than what people on Wall Street thought.
Why? Well, it's all about those special chips they make for artificial intelligence stuff that goes into big data centers. People really want these custom AI chips, and that's what's driving a lot of their growth. Plus, the chips they make for connecting things and the fancy light-up ones are also getting ordered like crazy. This is all helping those huge companies that need to beef up their systems to handle all the AI work.
Marvell basically said after they shared their results that they think this AI boom is gonna keep going strong. They mentioned that big companies are spending a lot, there are new projects for government data centers, and even new players in other countries are getting into the game. This is opening up tons of chances for them to grow.
The part of Marvell that deals with data centers is a huge deal for them, making up like 76% of all their money! In the first three months of the year, they made $1.44 billion just from that section. Their other areas, like the ones for phone companies and regular businesses, are also starting to bounce back after things were a bit slow because companies had too much stuff on hand.
Someone named Angelo Zino, who's an analyst, thinks that the custom chip business is going to be the main reason Marvell grows over the next few years, like three to five years. He said it'll help them make more money, even if those specific chips aren't the absolute most profitable by themselves. Angelo also mentioned that Marvell is having an online meeting in June about their custom chips, and that could be a big deal. Maybe they'll show off all the new ways they can make money and some new customers they'll have in 2026? Who knows, right?
However, things weren't great for their chips that go into things people buy, like gaming stuff. Sales for those dropped by almost 30% from the previous three months, probably because it was a slow time for gaming. The part of their business that makes chips for factories and stuff also had a rough time, with sales going down by 12%.
After all this news came out, Marvell's stock price actually went down a little bit, about 2%, in the extra trading hours. But still, they're expecting to make about $2 billion in the next three months, which is a little more than what the experts thought, which was around $1.98 billion.
Oh yeah, and back in May, Marvell said they were putting off a meeting where they'd talk to investors. They said it was because things in the economy were kinda up in the air. For the three months that ended in May, they reported making $1.9 billion, just a tiny bit more than the $1.88 billion that analysts had figured.
