Marvell Technology Bets Big on AI Chips

Okay, so Marvell Technology, you know, the chip guys? They're feeling pretty good about things, especially about making custom chips for all that fancy AI stuff in places like big data centers. They just put out their numbers and are saying they think they'll make more money than folks on Wall Street thought next quarter. Pretty cool, right?

It sounds like these special AI chips are a big deal for them. But it's not just AI; they're also seeing good orders for chips used in networking and those cool electro-optic things. This all helps those huge tech companies build out their systems to handle more AI work. Marvell even mentioned on their earnings call that they expect this AI trend to keep going strong. Things like big companies spending big bucks, new government data center projects, and even new players coming into the market are all helping them grow.

Their data center part of the business is a huge chunk of what they do, like 76% of their total money coming in. They made about $1.44 billion from that in the last three months. Also, things are starting to look better for their carrier and enterprise networking businesses. They had a bit of a slow patch where everyone had too much stuff in stock, but that seems to be getting better.

One analyst, Angelo Zino, said he thinks making these custom chips will be the main way Marvell grows over the next few years, maybe even adding to their profits even though the profit margin on them might be a little lower. He also mentioned that Marvell is having a webinar about custom chips on June 17th. Maybe that'll show everyone how they can make more money and win over some new customers in 2026?

Now, it wasn't all good news. The part of their business that deals with consumers, like chips for gaming, was a bit weak. Sales dropped by 29% compared to the previous quarter, probably because gaming demand changes with the seasons, you know? And the industrial side of things wasn't great either, sales were down 12%. Because of all this, the company's stock went down a little bit, like 2%, after the market closed.

For the next three months, Marvell thinks they'll make around $2 billion in revenue, give or take 5%. Most analysts were expecting something closer to $1.98 billion. Also, back in May, Marvell decided to push back their investor day event. They said it was because things in the economy were a bit uncertain at the time. In their last quarter, they made $1.9 billion, which was just a little bit more than analysts thought they would.