Marvell Data Center Revenue Up 98%, Stock Soars 10.16%

On December 3, Marvell, the U.S.-based chip design company, announced its financial results for the third quarter of the fiscal year 2025 (ending November 2, 2024). The company reported impressive earnings, significantly exceeding expectations, which led to a 10.16% surge in its after-hours stock price, reaching $105.65.

For the quarter, Marvell generated $1.516 billion in revenue, marking a 6.9% year-over-year increase and a 19.1% quarter-over-quarter growth. This result was $66 million higher than the company's previous guidance issued on August 29, and it surpassed the market consensus of $1.46 billion, as reported by FactSet. Non-GAAP earnings per share (EPS) were $0.43, reflecting a 4.9% year-over-year increase and a 43.3% quarter-over-quarter rise, beating the analyst consensus of $0.41, according to FactSet.

Breaking down performance by business segments, Marvell's data center-related revenue saw a remarkable 98% year-over-year increase and a 25% quarter-over-quarter rise, reaching $1.101 billion. In contrast, revenue from enterprise networking dropped by 44.3% year-over-year to $150.9 million, while telecom infrastructure revenue fell 73% year-over-year but increased by 12% compared to the previous quarter, reaching $84.7 million.

Looking ahead to the fourth quarter of the fiscal year 2025 (ending February 1, 2025), Marvell has forecasted revenue of $1.80 billion, plus or minus 5%, and Non-GAAP diluted earnings per share of $0.59, plus or minus $0.05. These projections exceed the consensus expectations of $1.65 billion in revenue and $0.52 in earnings per share.

CEO Matt Murphy commented in the earnings press release that the strong 19% quarter-over-quarter growth in Q3 was driven by robust demand for customized AI silicon chips, which was well above the company's forecast. He also noted that, compared to the forecasted middle range, Q3 revenue growth came in at an impressive 26% year-over-year, marking the beginning of a new growth phase for Marvell. In addition to the AI-driven demand, Murphy highlighted continued strong demand from cloud customers as another contributing factor to the company's strong performance.