Marvell Rides AI Wave, Forecasts Stronger Quarter
Hey, so check this out! Marvell Technology, you know, the chip company? Well, they're feeling pretty good about the next few months. They think they'll make more money than the big shots on Wall Street expected during this next quarter. Why? Because everyone's still going absolutely wild for those custom chips that make AI stuff work in huge data centers. Like, you need serious power for all that AI magic, right?
Demand for these special AI chips is still through the roof, and even their networking chips and the fancy light-based ones are getting lots of orders. This is all helping the massive cloud companies build out their systems so they can handle all the AI work. Marvell even said on their call after they reported their numbers that they expect this whole AI buzz to stick around. It's because these huge tech companies are spending big, new national data center projects are kicking off, and even smaller players in emerging markets are getting into the game. So, lots of chances for them to grow!
Their data center business, which is, like, three-quarters of all their money, pulled in a whopping $1.44 billion in the first three months. Their other businesses, the ones for phone companies and regular companies, are also slowly getting back on their feet after things were a bit slow. One guy, Angelo Zino, who's an analyst, thinks these custom chips will be the main reason Marvell grows over the next few years. Even though they don't make as much profit on each chip, they'll still help boost the overall profits. He also mentioned that Marvell is doing a webinar on June 17th about these custom chips, and maybe they'll spill the beans on how much bigger the market is and if they've landed any cool new customers for next year. Could be interesting, idk!
But, like, not everything's sunshine and rainbows for Marvell. Their business with regular folks, like for gaming stuff, was a bit weak. Sales dropped about 29% from the previous quarter, which is probably because of the usual ups and downs in gaming demand depending on the time of year. The part of their business that deals with factories and stuff also had a bit of a tough time, with sales going down 12% from the last quarter. Because of all this, their stock price actually dipped a little bit after the market closed.
So, yeah, they're expecting about $2 billion in sales for this next quarter, give or take 5%. That's a little better than what the analysts were guessing, which was around $1.98 billion. Remember back in May, Marvell actually put off their big investor meeting because things in the economy were a little shaky? They ended up reporting $1.9 billion in sales for the quarter that ended on May 3rd, which was also a little higher than the analysts thought. Overall, it seems like the AI stuff is really carrying them right now, but some other parts of their business are still a bit wobbly. Wonder how it will all play out?
