Marvell rides AI Wave, Forecasts Strong Q2
Okay, so get this. Marvell Technology, you know, MRVL, they just put out their numbers and it looks pretty good for next quarter. They're totally banking on these special chips they make for all that wild artificial intelligence stuff happening in data centers. Seriously, demand for those custom AI chips is driving everything right now, and even their networking and special light-stuff chips are seeing tons of orders.
It makes sense, right? All those big companies, the 'hyperscalers' they call 'em, are trying to beef up their systems to handle all the AI work. Marvell even said on their call that they think this whole AI boom is gonna keep going strong. It's fueled by those big spenders setting up data centers, new projects for governments, and even new players popping up in emerging markets. Lots of room to grow there!
Their data center business is where the real money's at though. It's like 76% of their total sales, and it pulled in a cool $1.44 billion last quarter. Their business with phone companies and regular companies is also slowly getting back on track after things were kinda slow for a bit.
One analyst, Angelo Zino, thinks these custom chips are gonna be the main thing driving Marvell's growth for the next 3 to 5 years. He said they might not make as much profit on each one, but they'll still help the bottom line. Plus, there's this webinar coming up on June 17 about custom chips that he thinks could be a big deal. Maybe they'll show off even more opportunities or announce some new customers for 2026? Who knows?
Now, not everything is sunshine and rainbows. The regular folks buying their stuff, like for gaming, that part was kinda weak. Sales dropped 29% from the last quarter, probably just because of the time of year for gaming, ya know? And their business with factories and stuff also sagged a bit, down 12%.
After all this news came out, the stock price dipped a little bit, like 2%. Marvell is expecting sales around $2 billion for this next quarter, give or take 5%. That's actually a tiny bit more than what the experts were guessing, which was around $1.98 billion.
Oh, remember back in May when they canceled their big meeting for investors? They said it was because the economy was all over the place. So, yeah, things are still a bit bumpy out there, but the AI bit looks pretty promising for them, tbh. What do you think about all this AI chip excitement?
