Marvell Technology Reports Strong Q2 Earnings, Raises Fiscal 2027-28 Guidance
Marvell Technology reported record second-quarter revenue driven by strong performance in the Data Center segment. The company attributed its success to rising AI demand and a significant ramp of custom silicon products later this year. Management raised fiscal 2027 and 2028 targets, citing faster-than-expected adoption of scale-up networking technologies that are shifting from copper-based interconnects to optical solutions. The firm also announced an expanded agreement with a major hyperscaler covering XPUs and related components like storage controllers. Operational efforts focus on securing supply through $1 billion in prepayments to suppliers amid industry-wide constraints. Looking ahead, Marvell expects Data Center revenue growth of over 60% in fiscal 2028 and aims for non-GAAP operating margins between 38-40% by Q4 2027. A new $120 billion warrant agreement with a key hyperscaler highlights long-term strategic alignment. The company is also preparing to manage both copper and optical technologies during the transition period, while gross margin guidance remains stable at 57.5%-58.5% through fiscal 2028.
Tickers: $MRVL
Topics: AI demand custom silicon Data Center optical interconnects revenue growth