Marvell's Data Center Business to Grow Despite Forecasted Revenue Decline

The chipmaker's fourth-quarter forecast falls short of Wall Street estimates, but AI chip demand boosts third-quarter revenue and profit.

Marvell Technology expects its data center business, which includes its custom AI chip business and networking equipment, to continue to grow next year.
Roughly half of Marvell's revenue is expected to decline in the first quarter due to a tough macroeconomic environment and longer-than-expected inventory corrections by its customers.
Marvell's fourth-quarter forecast came in below Wall Street estimates, with expected revenue of $1.42 billion plus or minus 5%, compared with estimates of $1.46 billion.
On an adjusted basis, Marvell expects income of 46 cents per share, plus or minus 5 cents for the fourth quarter, compared to estimates of 49 cents profit per share.
Despite the forecast, Marvell beat Wall Street estimates for third-quarter revenue and profit, buoyed by the rapid adoption of artificial intelligence (AI) that increased demand for its chips.