Marvell Technology (MRVL) 30 May 242025 Q1 Earnings call transcript

Good afternoon, and welcome to Marvell Technology, Inc.'s first [indiscernible] fiscal year 2025. [Operator Instructions]

Please note that this event is being recorded. I would now like to turn the conference over to [indiscernible].

Please afternoon, everyone. Fiscal Earnings First Marvell's to Quarter Call. XXXX Welcome

Murphy, and CFO. CEO, me today Chairman Matt are our Joining and Marvell's Willem Meintjes,

the Let we current to factors earnings certain statements, me actual and results [indiscernible]. that that risk today materially our filed review remind forward-looking from press the differ include statements management's could comments cause our which Please risks release, contained significant made subject with in to which and expectations. uncertainties are everyone cautionary

cautionary SEC the factors website in posted statements. review do most risk Please statements we intend We contained filings. our our not our forward-looking and which recent to release, filed on XX-Q our XX-K as as earnings today. press well with and the and update

will website. certain A to call During available non-GAAP and financial we our our between reconciliation the measures today, of measures. in section non-GAAP is GAAP our Relations financial Investor refer

turn the for the Matt call to Let Matt? me quarter. now over on comments his

Ashish, good Thanks, and afternoon, everyone.

midpoint quarter first Marvell combined drove guidance, $X.XX share this fiscal above and than in year. non-GAAP also of XXXX, earnings financial executed throughout the strengthening disciplined forward and performance are data revenue, end control, For of with of market. forecasted of guidance. of expense by stronger center Higher the to driven from team above delivered looking billion, the per Marvell the our midpoint we revenue The quarter $X.XX, well first revenue results growth fiscal

double-digit of applications center we was strong from and end in revenue $XXX for PAM, including with data center products. our from end enterprise driven Data In and center from centers. markets. discuss data offsetting record a seasonal market well outperformance Let grew interconnect cloud our electro-optics as demand The above results quarter, our first decline our cloud revenue expectations our than AI ZR higher X% than DSPs, XX% TIAs by for million, sequentially me year-over-year growth more of as for each revenue drivers our guidance. now the well and data portfolio drove on-premise

AI Strong revenue growth cloud was as standard by driven infrastructure. as well cloud

In the first of our AI from shipments products, our in from compute contributions quarter to market-leading we also initial the programs. custom benefited addition strong electrooptics

Turning XXXX. to of the quarter fiscal second

We guidance custom sequentially market. to expect AI center a our overall revenue our in I'm grow with for mid-single data center ramping. data very continues as our basis end and the pleased projected our silicon results digits percentage on

driven of growth center continued being connectivity Our leading our in products. is data and portfolio in custom particular, by compute and AI,

interconnect our Starting with solutions.

Our XXX-gig next-generation per qualifying lane XXX-gig the solutions. and PAM per have started customers lane first-to-market state-of-the-art primary interconnect deployments today for XXX-gig X.XT already products are enabler AI our

X.XT are solutions the poised next accelerators. Our AI generation to of enable

XXX-gig interest products our customer with at strong volume, our similar with [indiscernible] and high design are next-generation DCI multiple success at for We data with center expanding XXX-gig base new wins customers. DCI products seeing shipping an

DCI DCI a to modules our kilometers, at our electrical calendar shipping is billion cloud PAM market expect enabled DSP, which our wins the reach customers. multiple In new market started to over at event, Marvell for recent have new are extends coherent cables our Tier DCI As to overall to we opportunity design our expected we the XXXX. solutions, for billion $X long with we X interconnect expanding further aggregate, term. grow products optical by discussed $X DSPs by for be our active of we AI X,XXX [indiscernible] Complementing

flows market a the PAM-X retimers This X Gen need Technology driving standard and connections speeds. use morning, to new connection are higher PCI we is we at driving AI the for be Marvell X and entering required meet PCIe retimers. generations. Gen first site is new server for long signal. distances expected faster This billion our to the systems has applications PCIe Marvell bandwidth, that significantly the are many PCIe and completely leading over with the interconnect data additive for another $X market announced term. are been

key We new industry have also and partners now been PAMX-based are transition lane X XX this working retimers. Gen technology closely intercept sampling customers with and and our to X PCIe

market. later center designed These center shipments we this looking production forward switching, on products progress to updating are this you In to servers. data [indiscernible] scale continue to We year. are in forward to XX.XT help compute starting of switch look next-generation fabrics new our accelerated data our

existing traction we by encouraged opportunity our switching. both cloud for customers, We which are with new seeing the and are funnel has expanded

progress As at excellent we discussed making compute we custom with been have business. day, also our our AI

strategy acquisition silicon. AI the XXXX. The multiple custom we beginning very half and ramping custom Avera, in validating place are in ship custom first to and decades And combining programs the today compute a we fiscal in Our of fiscal are year. expecting we compute this following of of are put [indiscernible] the are Cavium experience products in both cloud

momentum, the funnel even cloud custom silicon. for optimistic expanding and about rapidly we more prospects are opportunity As we gain our now benefiting from

fact, funnel In April, our at [indiscernible] we AI in for custom silicon. Day cloud outlined

XXXX we meaningfully custom ability April, In to our for to share fact, our AI [indiscernible] from we in design compute $XX grow billion at XXXX, grow our years calendar $X our XX% are addition a new calendar CAGR. in AI Day market significant outlined in approximately wins increasingly growing in the , our mind in which and is to to over billion [indiscernible] expected

of drove ahead opportunity We TAM data from the first last Underscoring in Marvell's see billion to expected grow quarter. the infrastructure, strategy $XX in center CAGR. a in be massive XX% year, to with revenue center XXXX data the data billion our XX% and consolidated approximately a $XX leader calendar

last approximately we year. opportunities We double to from compute, share fiscal our result, numerous interconnect share next a XX% And storage. and the as years have over across several market switching expect our

and Now markets to let me enterprise Marvell's networking turn together. carrier end

industry of soft and period reflecting [indiscernible] correction inventory together. expected, As a

for As quarter. was revenue of period million. correction a $XXX end in line carrier demand, to of first flat million, industry inventory expectations in while the revenue markets these $XX Networking quarter both and half our networking revenue both and sequential. in bottom fiscal soft from Enterprise In the expected, second the our enterprise revenue the infrastructure we with was be for reach end project year, markets to declined reflecting carrier first a

order by comments patterns encouraged start end our customers' are we recent Networking, stabilizing normalize. they to networking are expect that that customers Enterprise their inventory their from to

shipping X-nanometer-based the while carrier a market end looking to fiscal to forward remains overall at to subdued, In end customer. this a we second we DPUs in the start of year Tier demand. demand XX half recovery market, our the As OCTEON expect result, a we to transition X begin next-generation as are initial closer

baseband next expectations we As end current Marvell's year both this and aggregate, the we and market previously to grow we we our more encouraging in the share markets. outlined, to next begins the already in while generation. are that working generation, on transport have to socket continue transition XG support are carrier of The see in signs end of secured the expect the shipping fiscal the sockets meaningfully baseband year, towards beginning market. In

strength forward of [indiscernible] in markets pace our to returning elevated in X Marvell. to will levels end for recovery inventory are both these still customers, normalized depend While looking the we

game was our quarter first for in and prior end Turning console sequentially. were to with completion program in declining market. XX% the Revenue the the from consumer the million, deliveries the market. in as reflected end-of-life and quarter in These an XX% the year-over-year results $XX line forecast as change well of demand

During plan. correction help of inventory expecting us, [indiscernible] This complete with gaming inventory their we closely behind revenue the them we the of our were production gaming customer products their work production our to plan. our in updated quarter, second the to quarter quickly realignment

expecting market, from consumer results automotive automotive correction These our expected us, This broad revenue end in reflective time rebound. in for is market quarter take fully taking gaming XX% some first a revenue place correction end inventory X% [indiscernible] second the behind declining inventory resolve. are to [indiscernible] the which and across quarter the sequentially. we to of And to the were

forecasting quarter for be are markets we revenue our from end auto second industrial result, fiscal sequentially. flat to and a XXXX the of As overall

this model this year upcoming further Looking to in second of as resume half and by the vehicles growth calendar driven year, an content enter expect fiscal revenue end we XXXX production ahead, of Ethernet Marvell's the they in increase towards year.

of Ethernet is technology. Marvell largest with Award the being us industry. This continues the have named Motors XXXX Year OEMs. who recognized suppliers deepen Supplier the prestigious the honored and with General award Overdrive automotive to recognizes portfolio in for world's the recently [indiscernible] automotive relationships

automotive our We [indiscernible]. are that excited

by is Led to summary, had played basis, other out on In continued while almost revenue first AI, outperform, center year-over-year we expected the quarter with to largely doubling markets end expected. data as found what bottom. a our fiscal be the

For quarter, sequential the the to forecasting on we at of midpoint are a consolidated basis. guidance, X% grow revenue second

expect the growth this of continued from recovery data the year, a by favorable We rest center a markets. for rest driven end setup fiscal of in and our

expecting also has to revenue positive given continue. demand commentary storage customers, we from Our year-over-year that are resumed growth. And

to which shipments. our remain custom cloud, to continue programs accelerator from we the base revenue, AI will robust project growth of expect with augment We our electro-optics ramp AI in to substantial correlated expected

of our continued at the Given year year, fiscal this and growth revenue we our confident from the exceed expectations the we had earlier event. well and we full AI discussed strong that start quarter in year are AI in the to way rest first our target on AI this for are

to turn over I'll that, Willem results with on the So and for detail recent call outlook. more our

good and everyone. afternoon, Matt, Thanks,

for $X.XXX of the of with declining first exceeding Let our our in XX% summary X%. The quarter margin gross me a was fiscal driving guidance, quarter of [indiscernible] XX% the end and first year-over-year with enterprise sequentially. was next XXXX. the and our was Revenue XX% Data XX% was total results [indiscernible]. midpoint financial industrial billion, was gross largest XX.X%. Non-GAAP at revenue. center largest margin GAAP of networking market, start

assets, to expenses acquisition-related $XXX operating GAAP margin was operating expenses costs. acquired million, were operating negative were including $XXX XX.X%. stock-based Non-GAAP Moving costs operating our and operating in GAAP margin on guidance. of line million expenses. while amortization compensation, with non-GAAP intangible XX.X%, restructuring was

diluted of quarter, per Non-GAAP loss was $X.XX, first the share above was $X.XX midpoint guidance. per share the $X.XX. diluted GAAP For income

balance year. in of cash operations payment flow bonuses flow for first our the from prior and to annual turning the [indiscernible] cash sheet. quarter Now was Cash fiscal

$XX at inventory was by $XXX quarter. XX%. end first basis, year-over-year of our we prior quarter million, the $XXX almost reduced by inventory Our million or decreasing million from have the the a On

the through dividends. Our returned $XX million X DSO cash days, prior shareholders quarter. We from by decreasing XX days was to

million first our during $XXX million $XX the of of repurchased we stock quarter. increase addition, prior the In an quarter, from

second quarter fiscal the in We expect repurchases of XXXX. to further increase

billion. Our total $X.XX debt was

Our gross debt-to-EBITDA debt-to-EBITDA ratio was net was X.Xx. ratio X.XXx and

payment the during This repurchases operating the cash As the primarily quarter, for decreasing million, end million by were cash prior annual funded bonuses $XXX fiscal equivalents of is generation the we due quarter. to of flow of first our stock and from payments cash employee quarter. as dividend and our $XXX

to the Turning second fiscal XXXX. our of guidance quarter for

revenue the minus of are in We plus to range billion, or X%. forecasting be $X.XX

GAAP expect gross margin approximately our be We to XX.X%.

approximately margin be We to expect our non-GAAP gross XX%.

decrease continues forecasting are cloud to sequential and small a our silicon consumer due mix in non-GAAP to We product in gross revenue projected margin rebounds as change ramp. a custom

businesses. substantial expect traditional with ramp only custom drive programs growth In we a silicon our half, to the a revenue modest in recovery strong second our in

accompanying result, to dilutive to we current a shift earnings. be margins, but operating expect accretive gross is and growth be and margin As our revenue likely this to mix to

traditional expect future. improve We that meaningfully the would overall levels our rebound more to businesses our a gross in margins in normalized

our second million. be operating project million. quarter, operating be $XXX expenses our $XXX GAAP anticipate expenses the We For to we approximately approximately non-GAAP to

to quarter, second million. and expense, $XX debt interest the including expect on we For income approximately our other be

We non-GAAP the X% tax second rate quarter. expect for of a

weighted We our XXX expect average shares average XXX be million. outstanding and weighted basic million be shares outstanding our to diluted to

to in $X.XX. per $X.XX We share diluted anticipate range the of loss GAAP

expect diluted share We to $X.XX $X.XX. range per the income in of non-GAAP

this is the basis on we quarter high second fiscal a about guidance sequentially prospects year. single grow revenue digits second the percentage for Our the in midpoint the to be at the in of to in half optimistic continue and

amounts revenue Thank returning generation active drive remain repurchase we stock on please flow investors open increasing program. delivering announce our instructions. to Operator, we line operating and capital Q&A leverage, the cash focused As growth, and through strong of robust you.

Instructions] [Operator

Our of first Vivek Securities. from Arya America comes question of Bank

half? number? -- sense about what quantify are But AI Matt, are back you've in give term, look and thinking just in is was of here then to for hoping the -- an into expectations and upside much kind a back the compute supply could you takes how I custom accounted near constrained I QX as you flexibility and center. data us the Just puts that how model it help QX a about for half, think the in much from in How number given overall for the is on? we

for production on great Vivek, Yes, our way Hi, thanks its that's so in up. question. started the and shipments, quarter, was which we first

If you our the growth is center custom. look of at most coming data in QX, from the segment

So custom. about the that's And think full in billion X/X a I'd And additional exceeding that AI some whole see floor a electro-optics of Marvell positive. $X.X number. from now about be, those year year the a of it, a both flex for half. we and the maybe we this perspective, revenue meaningfully And for way third color talked in with then for in thing say second in about fiscal to would

initial the fourth as reacting of then optics think We a supply and good and on get part the if overachieved did job, your And it? constraints position. about we very we're do been saw We our side, your ago, quarter strong did the like about to how into our feel on we in great kind on of Second the and upside a recall, we there. a and flow revenues year half first that you in question second in -- in where our quarter we've you team

manage make second on so to to optics the chain that. the we're we that flexibility And same the continuing very very, and is need half, and a focused sure in we supply very have manner the true both custom carefully the for And side. for

we've to Thanks. above numbers very we're so the talked and upside And about. ourselves handle beyond positioning much

UBS. [Audio Gap]

of custom I TAM. to ASIC wanted Matt, evolution the ask the about

Day, it's you'd guess share at that I You roughly the think you said you had said XX% beat a I soon. Analyst [indiscernible] And year. last said very

billion next So you next TAM $X in I custom fair that gets $XX to say is to roughly year. it at think be that compute I mean, the could would year? billion

small. billion came because to upside? custom $X in [indiscernible] So year, that's can still do you think million compute get million, $XX What you It was better QX. that compute custom in number $XX necessarily next pretty wasn't

So the connectivity side? is Thanks. it more on

Thanks, Great. Yes. Tim. Yes.

day, your with share. custom excess out numbers significantly. drive in are -- into silicon the in to going of I in frame of the silicon think end area our articulated articulated about right time $XX and So AI custom We're we to that billion a very that growing going XX%. [indiscernible] XXXX robust term TAM TAM we to very near Raghav goal terms up the And then yes,

got our the kind So you there line TAM of a the But got obviously, to from draw well has terms to of in here to on way. we're And opportunity. yes, materialize.

upsize exactly of we're next year at. the billion $X.X say we from looking from about for terms didn't billion year, breakout I'd did just so going but to give $X.X -- of are talk continue $X we is for incremental kind floor the next Our in this magnitude to billion. year, programs the

a of custom year lot hitting due to volume. is And to that going full programs their be first of the

just -- and model triangulate the will targets you confident team -- even to QX, indications be a started year. up terms where of for year, will certainly, above business today, that. day. AI on the our the and out to be business, continued calling can not that see the overall custom again, at we're and -- because trying outperformed split had next business it's well we help basis yes, are with the in most strong, very we and maybe great the and optics again where we very business perform that And you but On a where of then around are year-over-year all in outlined middle the I'm drive exact for AI next come also So the we're

Your Wolfe next Caso Research. of question comes from Chris

of gross of some I you you and with to segments that in the the is margins of and the that lower-margin to comments come regard the gross traditional guess that [indiscernible], made include margins some segments on on gross margins the some understand and business Question businesses to What coming will carrier are normalized bring that need the back weigh more to margins. back back would levels?

Yes, thanks.

that. me Let take

mix that we margin, gross by as as So much the driven look still well absorption overall overhead when it's then at the revenue get. level product we overall our of and and very

continue business, If our to corporate the healthy, be our bit those target a margins actually, side overall above you of gross look at merchant range. extremely quite

However, storage, a really significant key inventory at of components some enterprise going center you networking, the correction. look of are data that, on-prem through enterprise if

strong same And programs. so we're margin. gross the time, beginning And at the very custom typically ramp seeing our of those a lower are on

as we However, able really margin we ton as result, especially and on the are to NRE OpEx, a of recognize for contra a really operating R&D on get that leverage strong as so us. drives that

not more at I'm to than guide going time. one overall, So quarter a

I what start those do see tailwind a but triangulate year. merchant nice we're think indicating for -- next us have recovering as that you to across businesses here, drives other with we

the that just enterprise next on-prem the said, networking, and is more Thanks, gross question. of being And really weaker being in addition the are we that, types segments go then those X Chris, both center Yes. Willem Will. I'd add can data to as margins. which healthier to or say,

well. as recovery that well a automotive half, for strong the been that's second for stronger poised is and other is us The in one driver as a

timing look those return [indiscernible] recover growth. goodness expect to and to a where there some on like other [indiscernible] businesses It's for just them issue. out there's So sure,

drivers hopefully, about different margin. helpful to gross of that's the think And so

Next question.

Your of Karl next Paribas. question from comes BNB Ackerman

center, data guess AI data And storage I you're there could a this of looks be I you ecosystem -- perhaps from appear there [indiscernible] Gap] seasonal just it green both the center. sorry quarter like what going because Within [Audio channel hoping to forward does basis. the even within and was portion shoots about seeing and fiber

if data fiscal and the balance would this throughout that portion 'XX, very helpful. be center non-AI just both you of of the could So discuss quarter

Yes. thanks. Karl,

I'd granularity AI, it The year. promising very the and So upside to say year continues into by within data been is we to It the the getting without look way next discussed, continues it quarter yes, has to pieces strong. relative center. and this as very

to The first both Gap] that is for companies services, -- we those AI And in throughout a in relates which that first sure. cloud And the with to And standard to has and server seeing what's our just year. see bottom quarter in quarters then we very see as do growth business. continuing on-prem standard the results, very couple were seeing those really in [Audio that happened been relative claim, probably so the when last we a recent piece, we're invest infrastructure. so, our continuing in and particular, traditional providing are depressed shipments, X over much it or

levels. that going the growth of part so as to some with normalized of rest year the of And coming the well be back that's throughout

of that recover. And improvement about back some Willem's the we can earlier look gross those forward margin businesses as to ties to comment

X Thanks. different those. in dynamics but of with from growth all driving here, So see I kind

Your next Tom Barclays. from comes question of O'Malley

a and or think and timing talk you of do more think inference You X with of about to lot spent design. those. could Day any is you as involves well are AI saying it the look as defensible, process the that I customers' talked [indiscernible] time any future, design could at about you less the this chip into CPU the kind if you know that over-indexed the both of you a really be of

flags you [indiscernible]. that today. those There So I some where are understand may about But just could be planted defensibility. talk

other talking products developing of types largely types ones, I we are these bunch solutions. the in of have solutions showed a same if we're the involved okay? in. But are as a mean -- are those wide that by slide you're most at Yes. silicon is Tom, market of these multiyear that state-of-the-art because Raghib development plus you're variety about literally in a semiconductor on the cycles, and Day right, what [indiscernible] camp, AI data the And multigenerational custom center industry. engagements the providing or multiyear we in of

and with the of the put XXX well these as next and yield, advanced of to Some partner, as customer It's key that to have have working the high reliability the be set billion in plans generation. then all able these deliver for are the most node, and advance. packaging, most most process IO high it actually to transistors type get advanced high the up. we as a be volume, typically And well together on parallelism advanced in

we wins to on programs now really then ramp talking about XXXX XXXX looking out Tom, year. of first calendar for and The about in custom these we're was then talked and I'm kind XXXX, of sort seeing. full we're

engineering -- teams earth with the heaven and and companies. So both moving in that's

once So are sticky job. I and do in defensible, you typically put the and and sockets when other. very to you making investments we're with in when us. our next are -- But leads There's in I great and customers wouldn't it the different kinds of all various our partner over And one. we silicon X very general, dynamics partnership, of sort the are a our wouldn't we execution these with custom prove

position our I there. about feel really So good

Marvell. we all I few and over does for develops like very it in Raghib think question. drive if years. Thanks will gains very confident so And And we to next meaningful think hope market our the that's for the share it why and are will, ability be the really

question Needham. of Bolton Quinn from Your next comes

on you talking wanted gross ramp the I Are headwind. understand relative quarter long-term pressure of back Matt, are Obviously, when of sort July margins to from to plus? to of you about of you is the of to [indiscernible] bit compute a model Or you guidance custom the come can about But the of question. just as of us? the level XX ramps, pressure of just margin kind level a XX. custom talk talking sort compute set sort

Yes. the going business our ramping this clarification. through and talking about programs do what question, Thanks to for Quinn, really We're the year. that's to

you mix And a right corporate models a different have custom leverage, drive is now than in We which of where we're different period the know. as carry and operating business lines, gross well product a margin. average does tremendous indicated, piece does lower

So a term, in very ramp strong and what the as that's we Gap] on inflection see near we're that say. business, [Audio with to trying

We've this successfully of The get businesses, gross some sort we'll to profile. and have their when trying get Gap] normalcy through in I in to portfolio margin time And I now. really a term. of beyond, that's just I demand. would across post-cyclical to think were And the business to period we're signal few for and how there, grow that's healthier and rates as next more we of the ability you still period really see terms much to to think about quarters. those other the that's the but really you to in what they a back then that we're from a near But kind at model margin happens on of healthy [Audio think drive of everybody that products, got -- run margin-rich return say,

Willem, add? do you have to anything

Nothing Matt. . perfect, that's else. I No, think

thanks. Okay,

comes Your from Deutsche Ross of Seymore next question Bank.

kind parts a business. get enterprise slow about recovery to in talked of the your of the to and Matt, you cyclical networking Wanted of carrier business. combination the

there of it slope big if big step-ups. have quarter, it you $X Can that? And that? overall. those have they're a the X a billion gradual businesses for so and $X conservative you Is Are abruptly of expect you of in course should timetable of so share year? if be over they to get individually, loss? further those topics such get that in what think be on off? recovery? increase? wondered Just a why Usually, I couple would dropping Just billion you'd Any said there would to be would helpful. you you being The next sort color hard last kind drops, just quarters, Is

Yes. great give example. No, and I'll a you it's question, maybe X Ross,

So say of see the until I the slope, sounds I to would until a I here, bit to first the much drop, it that the [indiscernible] recovery. easier -- bookings in view be call. little about really think are the on we just when is know will yes, [indiscernible] taking back part, to a magnitude would conservative Gap] say [Audio we're taking a be the I the little thoughtful answer reality we given it's the we recovery easier

doubling But that down had being it's into and pattern look QX, this we QX, said, as going I'm It realigned. inventory consumer too. our And fact, and now in at I've seen right, business. a that worked through

seeing, think, it's rate, but the seeing kind take both returning those $X see there back and each a here that and billion we're we -- but do of, and $X in of maybe the what enterprise little counterintuitive -- was call it, I their so on markets. goes. very we're a I run combined, carrier in it what to second billion a And do different, terms to And PAS like

the with side, depressed. overall environment, looks On capital carrier operators the still and the still weak environment it end and looks spending very

the However, later on outlook own and in improve market, year. our this the terms growth for some wireless and this in demand ramping drivers of particular, actually content in bookings side seen in we we've area, have with of this some new

that more the confidence to really broader of a in getting orders start into return growth, you QX, give half environment. for when a kind even so lot and And of those of second it in sort us starts to depressed

counterintuitively, in of terms feeling one the -- order just So about because activity. we're that seeing pretty we're good

good. it's commentary is little end On The continues different. the which enterprise side, bit to strengthen, a market

their are their Our work down and inventory order about and to customer starting also starting talking their inventory down. modestly internal sales to talk activity. backlog And they're end about customers in even improvements work their own

still we magnitude seen think out So as haven't that's recovery the given I yet. positive. of But there, the inventory that

And next it. But both second within the of But a carriers so in of businesses. quarter, I'm visibility hopeful much for about helpful think expect I'd depressed first. say like is terms if started But those half to hopefully, forward. loss. modeling you we'll on we've the the pick just got have say I'd how surprise, my that's to to gain moment. of better kind example, when. But a environment was anything, follow. share tough going carrier Enterprise the do it It's at actually up you question a It The back if share wasn't we

that of But And half. better will our a have we'll indications they second all growth. to are hopefully, return

[indiscernible] next of Your from comes Jefferies. question

is Actually, my you did explanation we could pretty was know good wondering but easy outside correction. going similar I data said to what I'm right? I in electro-optical, question storage is. of talk the year, kind So thought cyclical was a center, up to [indiscernible]. it your to think if but was [indiscernible], you pretty be curious it's just [indiscernible] I of a there, you

any comment is -- storage on and I you bits the down? don't that centers look is seeing kind trends what there optical, aren't there? How you kind of and correction AI So much well? And much kind are other kind of data of if if you at can going on of how of as know the cyclical improving

great No, add, Yes. one actually. [indiscernible], to

the numbers don't heading out I it break we reviewed into all exactly, call. Although these

but hasn't ago, in seen each it's data been and a still I storage. there we comps sure, that's bottom but improvement So our of But steady in nicely. And year-over-year question, kind that year it's a to first it positive pretty within portfolio storage the saw quarter trend total quarter up, hockey are growing center for you're Ross' the and storage overall on since. in easy, very it's guess, sticked right, actually

that's which the again, all So great. end coming drive seems very particularly is encouraging. back, hard And side, the they're customer on commentary

to they again, customer least had end they picking at work inventory end bullish down well. market as up we're those as from what that starting So level at signals the look the accumulated, are

I'd to that's to we expecting is as hopeful business back well recovery one our at. that, the of and center be the a been it in storage that it, the feeds has -- we're second that's for sure, part the we're been that But So nice half levels been but feeds [indiscernible]. that should on say nice path mostly one of think a growth part the path that data on

Your Harlan next from of JPMorgan. question Sur comes

On year are compute to with benefiting the side, ASIC you this upside in And later and driving profile sort all is then partner optical driving July growth optical secondly, got of starts the this other your support in drivers this of strong GPU that here the this optical. from guys given right is your lot these deployments. AI XXX and growth to X.XT quarter-on-quarter potential a you've customers Is build-outs. NVIDIA. -- gigs of year in lead

to on think top data then For new going ZR XXX-gig your your I for think, your X of XXX-gig, will it's growth XX, solutions. you [indiscernible] some And some DSP solution. cloud X have DCI Tomahawk drive, this upgrades fire center this Broadcom's of example, right customers platforms footprint XXX start on your time that, Teralynx that are the around XXX-gig customers that broad incremental I for the especially networking year, with shipping

So some I some potential guess the is, drivers visibility are these of on follow-up in optical? to upside get you starting question here

Yes. Excellent question, Harlan.

maybe say now QX way about got And we're in down, reason QX. the to pretty additional business our actually short that term, and modeling and the the the think for up. guide you've both the pretty think is well outperformed we into narrative is optical comments. slightly flattish in I nailed but July it some is right to big I'd

So sort do of thing numbers to from standpoint last hit, And a every beating continued quarter. ramped we've positioned once and been hit fast. AI the supply since whole there GPT up year, we're and outperform. say it's very to that, just hold those chat fact, . And it's I'd in but it

your it we -- point, in look be infrastructure half, up, and to standard traditional July, are also into to flat strong as So because cloud happen. to the modeling be build-outs going slightly those to upgrades it will second may we're very

got as thing, model year the multiple then cloud with second infrastructure And some next switching that's our And our we've as now part then that's optical probably a half contribution we've portfolio seeing also engaged you ACs so the well ZR, of then mentioned. well. more we've customers And but And is ramp year. of in got business. standard this again, on

at of a area. when So QX. in you in the half the that's there's look second this Marvell lot And whole we guided X% happening of why sort this year, for company up

at the by that you all primarily going look see. be to driven driven which total of half, primarily data by I mentioned and we AI center company trends are dynamics when And is the accelerating, second

optimistic see very, a for So [indiscernible]. yes, very great second the we setup half,

of comes question next Your Cantor C.J. Fitzgerald. from Muse

silicon that seeing own to think are prepared Is projects Matt, I to is guess, follow guess funnel. greater about on players selling next-gen about optimism integrated custom also those as up of I winning silicon? vertical your you that on customers? customers? the it Is Or silicon you breadth And visibility that, to contemplating increasing to content where existing their units? you potentially visibility and at prospects talked wanted I additional remarks

Yes, talked we those business last certainly of expect businesses. day, from those CJ. Thanks, on doing we strengthened are in the and AI from we the about Even when wins from that the terms those And even revenues of Yes. now, have next year no, total have or year the ramping for all this all was this are right focused that design than better in existing thought. we really production comment year. the both quarter

seen we're we requirements customers supply for on can both that seen I our for the custom silicon for only optics and for making So very the have us portfolio. not AI, raise whole demand chain we slow down. so sure We've our with remains working think partners and and their and And estimates it. their strong and meet

number And then we programs, phase and We're very the day. at on engagement momentum talked side execution many to that, the say about new the AI remains on -- which of of additionally customer strong. a in I'd though,

driving So down unique teams, right a schedule. we're this to time semiconductor in role. heads and market pretty yes, exciting the part And industry driving a technology, have such be of now driving in it's driving the the innovation,

both Thanks. the is activity revenue yes, So demand wins. off design and charts,

Tore comes from next of Stifel. Svanberg question Your

concentrated I there? had ambitions question the a mean PCIe. are on supplier base exactly company's a it's today. What I

into is the market I well. as think competitor the largest getting

So the -- are ambitions big PCIe. we your is What how market? from when this revenues a earliest share see And perspective? should for

the known This in our know And opportunity look PAM-based stuff, for this at look can for DSP deep obviously, thanks market incremental for PCIe it. in an we us, question. Tore, just leverage time, you as you're we've because core Gen at X. Yes. to some about capability well design. this people really this And as really is but

Gen Gen PCIe. there on forth. X was and early Maxim, retimers I on and so of and when mean, remember at this So X X I was working stuff kind for I okay, like Gen back

So or on I've PAM. announced products thing sort modulation back now scheme market. at Marvell going PCIe around sampling, when which always couple on of the NRZ that was that transition, the been Gen at moves the we to And the looked of X we've happening this a from is is years

this market And that our was intercept at decision so this juncture. to

a would proven I just it's think I size. market say, And

the X. rest Gen stuff of then years. It led area. it first. then broader -- in wheelhouse. it the will the plays the you'll the next where It I of it the adoption player be here. Gen in to just was strengths. But in AI a It's world-leading are And have probably over a to standards intend this sort we of lot And of probably be from of market, think grows like a X when our formalize see we in and capability to couple ratified, our by lot

it's When it, And one-stop what shop we products AECs, breadth connectivity to breadth offering, board. us, they're the we for have and you you about DSPs, think proven, are these so of people if whole fit and the perfect connectivity across our of think customers about a the terms it's of and with. product retimer our and optical dealing And you name know -- technology in portfolio. solutions

and So customer still of lot standard, we interest, announced a an optimistic today. products but It's have definitely it's -- why we're early, Tore. that's emerging the we

James. Your next question of Pajjuri comes from Raymond Srini

you're [indiscernible] I aggressively ramping guess pretty silicon.

year ramp? how with of cadence next thinking you understand long that trying they ramp And be first I'm think ramps to typically at works just customers curious to guess, we your we understand ramp I'm how the is know should curious. X-nanometer long you each I guessing how supplier, to of go just the you should just when generation to ramps. about year. The don't are then actually trying And products. full largest most these cadence X-year down? have just -- a cadence. of look because transition starts, wins. as design typically engaged I'm are going from the expect of how next to how those generation, they X-year programs transition? if to are But that current about generation when [indiscernible] are the next when -- I And generation switched custom then kind I'm to GPU the how the then the

Day the AI on We the Srini. very yes, the first custom. Thanks, it And steep plus this about talked Yes. point is of rate kind ramp year. you at mentioned, run

kind sure is These want that biggest node the hit. just specific say as complement the on -- next as making [Audio fast year, that latest talking strong of the for I'd very custom they offerings. just Gap]. they engagements, side full [indiscernible] the and as suppliers, to their cycles So they're are have keen technology merchant about at would kind probably once these of I without year are X-plus say

deeply least ones around current we the next-generation products going being of So comments and for same to execution on design you're But have over question, visibility your mode X-nanometer earlier I X-nanometer see at . The some couple now, on and we're in on the that's the very that's strong, where X-nanometer. part trend. wins we activity, have next made that programs. and the very strong engaged of years pipeline been have design if already of

next the X see on and is motivated you've out, intensity going technology they're a of you happen all way have both, the in [Audio to still power custom requirements to a terms as make side, to meet same to, and and that the but merchant of you're in R&D see terms you as one. flight to very on Gap] dynamic, in have just right, their is the augmenting it's -- both sort -- it's with and going of leading from that supplier is their working AI is to as them to going types require Srini their And bit well got of of side spend X breadth as So have how own. solutions, almost the way in both kind of X to the plays now production the the

All you. right. Thank

couple a got we more think here. questions I

Rolland of next Susquehanna. comes Your from question Christopher

a my and follow-up Just quick on the then retimer PCI question.

drives? for consoles any driven XG that or or product lot identified? get a them Are cyclical that Just would been drivers or if you're storage, these previously had product-specific that nearline around that consumer. the question of market, is beyond you viewing they've any really enterprise idea great. it's by markets campus whether carrier you've my and cycles, be recovery and and there them wireless Of how TAM on upgrades these But markets, a can

Yes. Chris. Thanks,

will in the products, pretty the that and reports that's can Gap] that's can sure. provide -- future we of but to thought there's on But spelled information the it yet. the in develop it a We [Audio is we the an haven't first early significant you're me out market was Let we on were frankly, enter doing view there enough probably be future. something when and -- we provide good Gap] was to TAM that. something Day our out it market bit the our [Audio one, AI But opportunity for do quite

in as are will side that's up, us right, ramps gig additional of cycle well On wins, gig a the the from on XXX -- as content by as there terms the adding driven coherent. these to that be gain, good side, socket once an transition example, well, XXX our be picks the going up really wired carrier private design of a some own is to both nice

on. we've examples. those are Those So going got X

changing. And increasing are. time, increasing consoles think are in share, over we've But market, grower and I networking, of of we've said we in they better. businesses kind what don't then our terms can content. that gradually, of I a see kind [indiscernible] our do that always just been

say had think [indiscernible] there just We even several XX% we we really in it's capture. but said, we've and years do nice it's mid-single-digit all and it, or we've side market, the enterprise were of kind call we fact, which That's XX%. on always, of [indiscernible] it, of a -- performance we is, out, that modeling conservative a once of all share But little said I I like better sort can bit Now think, terms the normalized. to consistently able always to grower be here in on as terms stuff some had the inventory from a better. all in is

than goes just I uplift. the gig. get other goes per don't as ASP switching port -- the And there the cycle up. more an major X Multi-gig ASP product continues up as than We to any side, see the in bandwidth ship as

from solid trends footprint a But of good So there's some did nice there, perspective. a very I think share we job establishing a Chris.

model forward our And of the modest really and growth market be so going kind should plus share gain. own content

can with wrap question, we I and up. more think we've that, got then it one

our Citi. take of will We last Atif question Malik from

holding volume up is the for on X.XT Curious the what optical about the ready? flat waiting and lasers response not adoption to are thinking is when XXX-gig. the you just if Matt, talked in [indiscernible]? that Harlan's it's Or question, it to of about DSPs. you not Are slightly

[indiscernible] the to [Audio cetera. schedule, customers' et their build ramp, system Relative Gap]

one this -- this laser space. not -- in So this start a the right? there's -- all doesn't that yes, mean, -- it's problem seeing There's green the at There's these issues I some in we I always optical have moment a past, or remember problem. issue

[indiscernible]. hour this -- products miles going everyone's ramped X an their million get time, really to trying it's But --

solution. partners module ramping Our with up our are

that driving customers can. end they are as fast as this are Our going

platforms we and they're ramping, it's doing that of just need a issue more timing So to we're as that. intercept the

help in back part a the the on definitely Think the much to of with So that of enable in shipments we're year But contributing and right, volume to able next we this transition. regard. really as clear And the but that more path see X.XT meaningfully of it's the forefront of underway, optical to sort ship in be at standards. in generation this lead next latest and accelerators half,

will, more be and it will and it then yes, think, year year, for volume us. be big later product a So cycle I this next

question. that, that I think the with last be would

Citi everybody, think coming conference. interest all look the company, in the in wrap to I up see can guess and in Marvell call I'll I forward you from September And we the of for at the seeing your months. I in Thanks, and you probably here. So

Take all everybody. So care, right. Thanks.

question-and-answer gentlemen, for presentation. you and today's attending our concludes session. Ladies this Thank

may You disconnect. now