Marvell Technology gave back most of its big-knee jerk gains after the custom chip and networking company released in-line results while continuing to offer an increasingly optimistic view on future sales.
Shares peaked during the conference call as management formalized its sales outlook.
The company lifted its revenue guidance for this fiscal year to $11.5 billion, up $500 million from the outlook delivered last quarter. The following year, Marvell anticipates sales of $16.5 billion, a $1.5 billion boost in the view versus three months ago. That fiscal 2028 guidance is well ahead of Wall Street’s call for $15.3 billion.
“We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter,” said Chairman CEO Matt Murphy in the press release, attributing this to “strong demand across a broad set of Marvell solutions.”
Taking a step back, here were key numbers for Marvell’s opening quarter fiscal 2027:
Net revenue: $2.42 (estimate: $2.41 billion, guidance for $2.4 billion +/- 5%)
Adjusted net income per share: $$0.80 (estimate: $0.80, guidance for $0.79 +/- 5 cents)
For the current quarter, management expects sales from $2.57 billion to $2.84 billion, the midpoint of which is higher than the $2.61 billion consensus estimate. The outlook for adjusted net income per share is $0.93, +/- $5 cents, which is above the $0.90 call from the Street.
It’s deja vu all over again. Marvell had set a high bar for itself coming into this report. The stock surged even after its Q4 results came in broadly in line with estimates in early March, as management issued rosy Q1 guidance and an upgrade to its sales forecast through 2027 (its fiscal 2028).
That bar is just getting even higher:
To borrow a line from Creative Strategies CEO and principal analyst Ben Bajarin, “All viable compute will be used.”
That sentiment is the loose reason why the stock has more than doubled year to date heading into this release, riding the wave of heavy demand for both compute and connectivity solutions.
Marvell already counts Microsoft and Amazon as major customers (and is reportedly in talks with Google about custom chips). At the end of March, the company got the Jensen Huang seal of approval, receiving a $2 billion investment from Nvidia as part of a partnership to ensure custom chips work seamlessly within Nvidia’s data center architecture.