- Marvell reported record quarterly revenue, with data-center sales up roughly half year over year and approaching four-fifths of total revenue.
- The stock sold off despite the beat because material revenue from an expanded hyperscaler custom-silicon agreement is delayed until FY29, while custom silicon weighs on gross margin.
- Management lifted revenue expectations to more than $12 billion in FY27 and roughly $18 billion in FY28, with connectivity products expected to drive much of the added FY28 outlook.
- Marvell plans to acquire Celestial AI to expand its photonics and optical-connectivity offering for hyperscale AI data centers.
Quotes
“The data center segment did almost all of the work, expanding by close to half year over year and now representing something approaching four-fifths of total company revenue.”
“For fiscal Q3 2027, the company guided non-GAAP gross margin as low as 57.5%.”