Marvell delivered a solid QQ3 2025 results print, highlighted by a revenue beat and a strong AI-driven ramp in data-center demand. Revenue totaled $1.516 billion, up 7% year over year and 19% sequentially, with data center accounting for 73% of total revenue. Management reaffirmed an aggressive AI-oriented growth path, guided fourth quarter revenue of about $1.8 billion (+/-5%) and signaled continued expansion in custom silicon, optics, and interconnects, supported by a multi-generational AWS collaboration. The quarter also featured a meaningful restructuring charge aimed at reallocating resources toward data-center initiatives, and management remains confident in the long-term operating-leverage trajectory and stockholder returns through buybacks and SBC normalization.
Near-term visibility is anchored by AI-driven demand, a high-valence custom silicon ramp, and industry-leading optics development (including the 1.6T and 3-nm DSP progresses). Management projects continued AI-driven strength into fiscal 2026, with the AI revenue target of $1.5B for the current year already exceeded and a higher-than-previously-guided trajectory into the next year. However, there are meaningful execution and macro risks, including the dependency on AI cycle health, potential supply chain constraints, and competitive dynamics in the custom silicon space. The AWS collaboration is a pivotal growth catalyst that adds multi-year volume visibility and accelerates silicon design via cloud-based EDA, reinforcing Marvell’s AI-first platform strategy.