Marvell's AI Chips Powering Growth, But Some Areas Weaker
Okay, so check this out. Marvell Technology, you know, MRVL, just dropped their latest forecast, and it's looking pretty good for the next few months. They're expecting to make more money than the experts thought, mainly because everyone wants their special chips that power all that crazy artificial intelligence stuff in big data centers.
Seriously, the demand for these AI chips is through the roof, and even their networking and other chips are seeing lots of orders. This is helping out those huge tech companies that need to build up their systems to handle all the AI work. Marvell actually said after their earnings call that they think the AI boost will keep going strong. Why? Because big companies are spending tons of money, and there are new government projects for data centers popping up. Plus, new players are joining the market, which is opening up even more chances to grow.
Most of Marvell's money, like 76% of it, came from their data center business last quarter, bringing in a cool $1.44 billion. Their other businesses, like the ones that deal with phone companies and businesses, are also starting to bounce back after things were a little slow for a bit.
One analyst, Angelo Zino, thinks these special custom chips will be the main way Marvell grows over the next few years, even if they don't make as much profit on each one. He also mentioned that a webinar Marvell is doing on June 17 about these custom chips could be a big deal. Maybe they'll show off how much more they can potentially sell and who some of their new customers are going to be in 2026, that would be cool to see, huh?
But, and there's always a but, the part of their business that sells to regular people, like for gaming, was kind of weak. Revenue went down 29% from the previous quarter because of the usual ups and downs in gaming demand. Their industrial business wasn't doing great either, with revenue dropping 12%. Because of this, Marvell's stock price went down a little after the market closed.
They're predicting for the next three months that their revenue will be around $2 billion, give or take 5%. This is actually a little bit more than what most analysts were guessing, which was about $1.98 billion. Remember back in May though, they actually put off their investor meeting, saying the economy was too crazy. So, it's a mix of good and not-so-good news, but the AI stuff seems to be carrying them right now. Idk, what do you think?
