Marvell Q1 Data Center Revenue Soars 87%

Marvell Technology, a leading chip design company, released its financial results for the first quarter of fiscal year 2025 (February to April) following the market close on the 30th. The company reported quarterly revenue of $1.16 billion, reflecting a 12% decline from $1.32 billion in the same period last year. The net loss for the quarter widened to $216 million, or $0.25 per share, compared to a net loss of $169 million, or $0.20 per share, in the previous year.

Detailed Segment Performance:

· Data Center Market: Revenue soared 87% year-over-year, a marked improvement from the 54% year-over-year growth in the previous quarter.

· Enterprise Networking: Revenue declined 58% year-over-year to $153 million.

· Telecom Infrastructure: Revenue decreased 75% year-over-year to $72 million.

· Consumer Business: Revenue fell 70% year-over-year to $42 million.

· Automotive and Industrial: Revenue dropped 13% year-over-year to $78 million.

Despite the overall decline in most business segments, the significant increase in data center revenue, driven by advancements in AI, helped mitigate some of the challenges faced by Marvell’s traditional sectors.

Marvell CEO Matt Murray noted that the ramp-up of custom AI projects will complement the company's strong electro-optics revenue base.

Q2 FY2025 Outlook:

For the second quarter (May to July), Marvell forecasts a mid-point revenue of $1.25 billion (±5%) and a mid-point non-GAAP earnings per share of $0.29 (±$0.05). Analysts had previously anticipated revenue of $1.22 billion and non-GAAP earnings per share of $0.28 for the quarter.

Murray attributed the revenue estimate for the upcoming quarter to the increasing volume of custom AI chip sales. He expressed optimism about the latter half of the fiscal year, citing continued growth in data centers and a recovery in the enterprise networking and telecom infrastructure segments.