Marvell delivered a record quarterly revenue of $2.006 billion in QQ2 2026, up 58% year over year and 6% sequentially, driven by a data center surge amid robust AI demand. Data center revenue reached $1.49 billion and represented roughly three-quarters of total company revenue, with AI and cloud accounting for over 90% of data center sales. Non-GAAP gross margin expanded to 59.4% and non-GAAP operating margin to 34.8%, supported by strong operating leverage, delivering a non-GAAP EPS of $0.67 (+123% YoY). The company also generated $462 million of cash from operations and free cash flow of about $413 million, enabling meaningful share repurchases ($200 million in Q2; ~$540 million in H1) and a strategic capital-reallocation move following the $2.5 billion all-cash divestiture of the automotive Ethernet business. Management signals a continued AI-driven growth trajectory with a Q3 cadence that includes flat-to-kind-of-flat data center revenue sequentially and double-digit growth in electro-optics, alongside a broadened go-to-market with 18 XPU/XPU-attach sockets in production and a pipeline of >50 opportunities totaling multibillion-dollar lifetime revenue potential. Far-reaching strategic themes include accelerating data-center-scale AI interconnect via scale-up switches and UALink fabrics, expanding optical interconnects, and consolidating non-data center end markets into a Communications and Other segment moving forward. The 2028 target of capturing ~20% of a $94 billion data center TAM underscores the company’s AI-first pivot, though investors should monitor the lumpiness of custom AI programs and ongoing supply-chain and macro dynamics.