Marvell Technology's second quarter results were met with a negative market reaction, reflecting concerns about the company's near-term growth trajectory. While management highlighted robust year-over-year revenue growth, driven primarily by continued AI demand in the data center segment and a rebound in enterprise networking, investors focused on the challenges ahead. CEO Matthew Murphy noted, “Our data center end market continued its strong momentum, growing 69% year-over-year, fueled by robust AI demand.” However, management also pointed to the lumpiness in custom silicon revenue and a non-linear growth pattern, signaling some near-term volatility in the business mix.
Is now the time to buy MRVL? Find out in our full research report (it’s free).
Marvell Technology (MRVL) Q2 CY2025 Highlights:
- Revenue: $2.01 billion vs analyst estimates of $2.01 billion (57.6% year-on-year growth, in line)
- Adjusted EPS: $0.67 vs analyst estimates of $0.67 (in line)
- Adjusted EBITDA: $782.9 million vs analyst estimates of $784 million (39% margin, in line)
- Revenue Guidance for Q3 CY2025 is $2.06 billion at the midpoint, below analyst estimates of $2.1 billion
- Adjusted EPS guidance for Q3 CY2025 is $0.74 at the midpoint, above analyst estimates of $0.72
- Operating Margin: 14.5%, up from -7.9% in the same quarter last year
- Inventory Days Outstanding: 96, down from 103 in the previous quarter
- Market Capitalization: $53.72 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marvell Technology’s Q2 Earnings Call
- Ross Clark Seymore (Deutsche Bank) asked about the drivers of near-term lumpiness in custom silicon revenue. CEO Matthew Murphy explained this was due to hyperscale customer build cycles and timing of product ramps, indicating a stronger fourth quarter ahead.
- Jeremy Lobyen Kwan (Stifel) inquired about the split between new and existing custom product revenue. President and COO Chris Koopmans emphasized that recent design wins are substantial, with several new programs expected to contribute billions in lifetime revenue.
- Aaron Christopher Rakers (Wells Fargo) questioned customer concentration and diversification in custom silicon. Murphy acknowledged initial revenue was concentrated, but stated that new design wins will expand the base over the next 18–24 months.
- James Edward Schneider (Goldman Sachs) asked about capital allocation after the automotive divestiture. Murphy and CFO Willem Meintjes explained proceeds would be used for buybacks and selective technology investments, aligning with the company's AI-first focus.
- Harlan L. Sur (JPMorgan) pressed for updates on 3-nanometer XPU programs amid competitive noise. Murphy declined to discuss specifics, citing sensitivity, but reiterated confidence in execution and continued design win momentum.
Catalysts in Upcoming Quarters
In the coming quarters, our team will monitor (1) the timing and scale of custom silicon program ramps, (2) the revenue impact from next-generation optical and switching solutions, and (3) the pace of enterprise networking and carrier infrastructure recovery. How Marvell manages supply chain coordination and the allocation of capital from the recent divestiture will also be important for tracking execution against its AI and data center strategy.
Marvell Technology currently trades at $62.28, down from $77.29 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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