Overview

• Marvell posted fiscal Q2 revenue of $2.0 billion, up 58% year over year, with data-center sales rising 69% to $1.49 billion for 74% of total revenue, and adjusted EPS climbing 123% to $0.67.
• For fiscal Q3, the company guided data-center revenue to be flat sequentially and projected total revenue of $1.957 billion to $2.163 billion with adjusted EPS of $0.69 to $0.79, noting custom AI growth will be nonlinear based on client deployment timing.
• The stock fell nearly 19% after the Aug. 28 report and is down about 42%–43% year to date as investors reacted to the near-term data-center outlook.
• Marvell completed the $2.5 billion sale of its automotive Ethernet business in Q2 and will consolidate reporting into two categories—Data Centers and Communications & Others—starting in Q4.
• Competitive pressure intensified after Broadcom reported stronger AI-driven results and a $10 billion custom-chip agreement that the Financial Times identified as with OpenAI, while analysts stayed divided with JPMorgan maintaining Overweight but trimming its price target to $120.