Marvell's Sunny Forecast Thanks to AI Chips
Hey everyone! So, let's talk about Marvell Technology, you know, the company with those chips. They just shared some news, and it looks like they're feeling pretty good about things, especially for the next few months.
They're predicting that sales for their next quarter are gonna be even better than what the folks on Wall Street thought. And guess what's driving all this good news? Big surprise, right? It's all about those custom chips they make for artificial intelligence, or AI. Companies that need a ton of computing power, like the big guys running huge data centers, are just eating these things up.
It's not just the AI chips though. The chips they make for networking stuff and those electro-optics things are also selling really well. This helps those big companies build out their infrastructure so they can handle all that AI work. Marvell even said that they think this whole AI trend is gonna keep going strong. They mentioned that big companies are spending a lot, and there are new government projects for data centers popping up, plus some newer players in the market are growing, which is creating even more chances for them to make money.
Their data center business is a huge deal for them, making up most of their total sales. In the last little while, that part of their business brought in a lot of money, like over a billion dollars! Their other businesses, the ones that deal with carriers and businesses, are also starting to pick up after a slow patch where companies were trying to get rid of extra inventory.
Someone named Angelo Zino, who's an analyst, thinks that the custom chip business is gonna be the main way Marvell grows over the next few years, like the next three to five years. He also said that even though these custom chips might not make as much profit on each one, they'll still help the company make more money overall. He also pointed out that Marvell is having a webinar about custom chips soon, and maybe that will show everyone how much bigger the market could get and if they've landed any new big customers for 2026.
Now, it wasn't all sunshine and rainbows. The part of their business that sells to regular people, like for gaming, wasn't doing so great. Sales there dropped quite a bit because, you know, sometimes gaming sales slow down at certain times of the year. The industrial stuff they sell was also a bit slow.
Even with the good forecast, the company's stock went down a little bit after the news came out. They're expecting their sales for the next quarter to be around two billion dollars, and that's a bit higher than what most analysts were thinking. Just a little while ago, in May, Marvell actually put off a meeting they were supposed to have with investors, saying that things were a bit uncertain in the economy at the time. But their sales for the quarter that just ended were also a little bit better than expected.
