Marvell Technology (MRVL) 29 Aug 242025 Q2 Earnings call transcript

Good afternoon, and welcome to Marvell Technology Inc.'s Second Quarter of Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr.

Ashish Saran, Senior Vice President of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. Fiscal Earnings Second Marvell's to Quarter Call. XXXX Welcome

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

remind cause current our expectations. comments certain results to which significant everyone from include actual and me management's materially risks could statements, to are made that uncertainties differ forward-looking subject Let today that

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

our our to certain GAAP During earnings also non-GAAP between financial will non-GAAP our reconciliation is measures A today, call and available we financial release. refer in measures. press

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

Ashish, everyone. good afternoon, and Thanks,

the the in third guidance Revenue quarter sequential year-over-year to would Marvell. all XX% result for third grew For from fiscal the revenue grow. by expense share also for quarter earnings per billion, above midpoint Marvell driven are above data our projecting of guidance. midpoint of higher sequentially, and revenue $X.XX, growth drove to expected return a with midpoint of the non-GAAP with by our strong of Higher center $X.XX Achieving delivered primarily second we of market. combined guidance, the of the second demand control XXXX, quarter also a quarter revenue end growth

] by as switch electro-optics silicon sequentially. growth our end XX% well These end we beginning for above its quarter, and Let driven million, In strong for me the now demand discuss center our ramp $XXX expectations record of results our market X% growing [ custom drove storage markets. year-over-year each as in and our anticipated revenue. data guidance for results our and second were

our next-generation gig to Strong and XXX the products, quarter. in Zeta of and X.X-terabit lane, looking starting we Interconnect forward are bookings per market-leading for XXX products DSPs our or hence continue third PAM XXX Center DCI gig

continue As to basis. fiscal we on year will a expect, this quarter every revenue grow our Electro sequential optics

also looking the opportunities are data a of new We number to center. within forward addressing

We anticipating and ramp our in of production for to for are the have we shipments XXX-gig active electrical the ADCs, second accelerate cables begun initial half. DSPs

we X addition, sampling XXX PAMX recently gig reach copper lane, higher modulation. turning first or to started AEC technology, per address higher In needs DSPs Data industry's the which order are PCIe center speed Gen applications. to interconnect servers X.X-terabit upcoming

and PAMX-based Marvell sampling position Given this our X transition, to are retimers. customers enable turning leadership we our now in are to PAM new technology, PCIE Gen

grow address CAGR continuing to of As positioning us a you expected our the of product our can an to see, by advantage to interconnecting interconnect we portfolio end-to-end TAM data to billion $XX center all broaden full are customers, to take XX% XXXX. critical at

are we We in photonics the including reach OPTAVSP new DCI lead longer-distance retimers, to confident silicon while into and DSPs, continue PCIe modules. expand AEC, franchises, and industry current opportunities, in with performance power DCI to our our X,XXX-kilometer ability and

this in position and leadership a large maintain to interconnect expect we result, fast-growing a As market.

liquid or address to bringing next-generation CXL of capacity In platform. secure challenges memory making compliant, bandwidth in are These new most the memory X CXL integrating offer Compute assures Keval their will a begin and with products are significant Marvell's and cloud XXX, key progress Azure security introduced in the hardware Microsoft families XpressLink our offerings. modules cloud in FIPS recently having devices management we Level business, X encryption to security We and market, technology services customers servers.

custom business. silicon our Let me now turn to

to new has X computing data focused AI resulting prove cadence accelerated center silicon TCO in drive to surge, their customers of methodologies. like and multiple partner design accelerated trend faster developed As cloud of binders using is production, investment each robust and driving increasingly windows high complexity, experience with Tier in generation. differentiation. complexity design in high This companies shorter volume, releases, custom chips increases delivering are significant Marvell, on chip on continues with generations in who leading-edge to and new come time the have AI using extensive

an customers to advanced storage, are high-speed take Additionally, to guided optimized silicon cloud photonics responsibilities. and interconnects, can cadence. a launches of approach technology platform adopting processor trusted our seeking ARM The differentiated expertise interfaces, decades packaging. staggered include the field-proven with of are and also produce which security, eye compute, on SerDes, value like who on reinforces has annual greater silicon Ultras access development concurrent product it platform, Customers HBM partner silicon Marvell,

our engagement customer to a design of relationships. shifting the nature multigenerational from wins point is As result,

AI also we are customer silicon we this our very earlier to progressing key first now ramping AI announced chips Tier Our including milestones. for custom already come year programs have production. are tracking well volume new new X projects with into the X programs Development well with won,

ahead quarter into growth for a accelerate forecasting the percentage the XXXX of Looking fiscal to data we teens end high center to are revenue basis. market, third on our sequentially

quarter, largest this growth growth from will portfolio. begin further optics augmented contributor to be they as the our ramp in to silicon meaningfully programs expect our by the AI We custom third ongoing

while quarter, networking the Enterprise second let turn $XXX revenue and was Marvell's revenue end me million, carrier was enterprise $XX markets. carrier Now In Networking to million.

markets this both second end quarter. and the end in of flat first these in the fiscal sequentially reached revenue half expected, As from year bottom collectively markets the

multiple for market, our for end in Looking after markets. care begun starting customers. multiple end digestion, inventory ahead, the In have DPU receiving from of growth OCTEON X-nanometer-based orders revenue we we are next-generation signs both of quarters to our see

to growth starting our seen our have Enterprise their orders, In bookings customers see Networking, we products. enterprise are and in for increased

revenue for mid-single quarter, grow result, carrier digits networking percentage third basis. in enterprise As sequentially project we to aggregate the and a infrastructure a our from the on

we end below And product expect enterprise networking market revenue shipping and the anticipate momentum further to sequential quarter. fourth consumption, carrier While growth from basis, Marvell our a this picked improve in up. combined order forecast to on

million, was we quarter. XXX% expected $XX the the to the market. Turning prior correction following quarter growing end consumer the in inventory second sequentially, in gaming Revenue

ahead revenue market third from the we a end on expecting the sequential consumer basis. grow to Looking to are quarter, slightly

anticipate game our couple the our from consumer the with years, of next the a for to leading SSD console $XXX Over annually, we revenue million from controller approximately end at majority market coming platform. normalize custom

be a market. for of factor will the our in consumer profile quarterly gaming end result, the As primary revenue seasonality demand

[ second sequentially. declining automotive place our automotive to reflect end inventory was Turning $XX quarter XX% correction results taking the million, market. market. Revenue broad in and the X% end across ] and These industrial year-over-year

the end are Looking ahead in growth third to the to from and digits expect industrial to fiscal mid-single the resume on revenue sequentially percentage grow auto market a basis. quarter, and we projecting

sequential both fiscal revenue In the driving growth, summary, with earnings led the data the doubling XX% year-over-year. and well top Marvell AI line the delivering second quarter, almost per guidance. center way in non-GAAP share above revenue team executed midpoint of

quarter. consumer than their end revenue that more markets sequentially, and our and the recovered in carrier Our doubling found enterprise second auto and bottom believe networking, industrial we

at investments an fiscal As reprioritize AI you our a our outlined XXXX, We and some outlined we in storage, developing of market. the at highest our led reflect networking to may opportunity slowdown map this saw large of carrier plan we beginning to toward even the including our in end strategy road ROI enterprise expansion the targeted has to market. and opportunities, aggressively and combining of as TAM, product businesses recall, releases an adjustments accelerated data infrastructure, new pace our markets. strategic center This change in increased the

plan opportunity. well our As to in our continue AI as what generation to believe resources day, we pivoting once a a be we towards

custom custom the center, success revenue size win believe margin the be growth to the continued to We achieve silicon target time we of and line given expect our silicon will largest portfolio. our expanding our model. data accelerate operating Within opportunity in design driver

business. from levels from lower Although operating and custom products, a NRE has with merchant merchant our than of given margin gross benefits inherently sharing it expense the offsets IP customers lower our

becomes larger below percentage revenue as part our path As we as current custom silicon of target see model. revenue, result, a a of a our a for expenses operating operating overall decreasing

we quarter, guidance. sequentially the of XX% to grow midpoint consolidated third at forecasting the For revenue are

AI networking and enterprise growth primarily this by be expect by our driven end to augmented the in center markets. data We carrier a recovery of start

ability the this year first our second to our full Given in our the and exceed significantly half remain discussed AI revenue from at start strong in of event. fiscal target AI the growth AI the earlier year expectations in half, confident we accelerated year the for

all The is Marvell executing on team fronts.

AI programs to our ramping custom expect up. We continue

strong drive have we set and strengthen, fiscal fourth chain the we and Our to the revenue supply bookings that to up and growth continue next year. secured quarter our capacity in believe

our which see in hard to stockholders. showing our generation, financials increased returns to is excited funding our also capital work strong up are cash We flow

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

Matt, good Thanks, afternoon, and everyone.

sequentially. was market second and was of Let growing at $X.XXX me gross was billion, X%. XXXX. Revenue with networking gross end followed margin largest auto XX% was carrier X% X% XX%, center at for of The of running a infrastructure the industrial of second XX% quarter financial XX.X%. Marvell's our midpoint the Non-GAAP consumer results revenue. and enterprise at was with quarter total Data the largest fiscal start declining in year-over-year margin summary our by exceeding X%, GAAP next XX.X%. guidance,

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

$X.XX quarter, of share share EPS above grew midpoint Non-GAAP XX% sequentially. GAAP loss diluted was $X.XX, $X.XX. income by per the second was diluted Non-GAAP the per guidance. For

our cash was sheet. in balance quarter flow $XXX second flow operations million. turning Now the to from Cash and

we million second to end cash $XXX million, a the by basis, have from On stockholders $XXX million prior through at almost million We dividends. inventory the by Our quarter. decreasing our returned year-over-year of or $XX $X quarter inventory the XX%. reduced was

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

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

billion. Our was $X.XX total debt

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

from second fiscal the quarter, cash of the equivalents ] prior [ were cash quarter. decreasing end million, As and million our $XXX by $XX the of

quarter third are Marvell's Turning for to fiscal or minus to the revenue X%. of $X.XX of billion, guidance range plus XXXX, in forecasting be our we

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

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

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

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

anticipation in We expect fiscal year-over-year our X% note XXXX rate that we our of for the income. step increase meaningful Please a non-GAAP quarter. a in third X% operating in tax tax rate up to forecast of non-GAAP to

in our marks our million. XXX We anticipated to shares average basic be outstanding diluted This share impact reflecting weighted outstanding our weighted an average positive sequential outlook reduction expect our shares be from million XXX repurchases. and count, the stock ongoing to

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

share to is grow XX% to non-GAAP income expect of expect custom We part in ramp guidance, of At the large products. midpoint we diluted sequentially. in $X.XX. AI This $X.XX in the quarter revenue the driven in from range a our per third

is this grow per midpoint, non-GAAP twice margin gross earnings more a our than the outlook, in non-GAAP our driving rate. the sequentially XX% by project at decline we Although revenue to share growth sequential

leverage continue to to expect we to drive expand, programs the operating bottom substantial line. custom our As

We are revenue rapidly. pleased continuing returning AI growth to with all center our data our grow markets, to end sequential our

As active we to remain generation revenue flow investors capital cash strong returning drive also focused our leverage, stock operating we and growth increasing and amounts through of on

you. Operator, Q&A the instructions. and announce please open line Thank

[Operator Instructions] Tore Your first question Stifel. Svanberg with comes from

leverage, strong elaborate operating you bit about at results. gross little comments The on end margin. a your the the there could Matt, just more the

I that it's all business accretive. the gross margin the of custom But know think also we is NRE, because very lower. ASIC margin upper

milestones, a revenue and some especially relation give rates? little maybe bit perhaps could So to us just you certain in run elaborate

and at one I'll the have or can end. off Willem this lead I then comment on Thanks,

I ahead Yes. when next when here I see of a beyond QX the there. -- of dynamics couple you there's see Tore, remaining look margin couple code. for in look, quarters really gross ZIP you a think the guide, similar

is it core margin. continue nicely, growth custom see we merchant the growing. programs lower all, and our recovery ramping leverage then the addition, really offsetting of gross our line And that's we and really top very over mostly the in got First to that. obviously But and manufacturing then the as we some additional see in products, absorption in good expect

So of ZIP the quarters right here. we is sort we think where guided few in couple for of QX the next Code

from comes with Your Hari next question Goldman Toshiya Sachs.

exceeding compute year months several in can seeing AI -- next is between And is your guys or about into that you The it as revenue well. the skewed significantly confidence talked target Or ago speak strength of both a to you're exceeding in you it business, custom ago. or is Matt, incremental as couple in optics compute shared full it -- well toward business? as custom if you you're seeing year the business? it your visibility your more months

we billion your number think see $X.X going Should I continued upside that target as next to was well? into year.

as XXX-gig both in cloud custom as been you. in demand and as Thank the first Great. business, that's as we optics the Yes. well mentioned, AI extremely strong has well traditional our Yes, as of in DCI. all, products the business, and

And going next next what that year that's relative broader extremely well. next in see target communicated ripple should and continued So we strength custom above in to absolutely for optics, year, year, We both for the portfolio. all and the had through.

Demand we to a have lead So Bookings great going with us setup 'XX momentum fiscal half very very AI. has the for eased a strong. that's and the in we strong, to has been Marvell second is what extremely be going been to think and here strong progress.

comes Arcuri question next Your with from UBS. Timothy

What just $XX right you thinking of I'm in give ballpark? can should custom? be wondering the July? close little giving like expect Is you is I'm Q-on-Q. us sense was you million probably those and Can that to sounds since was to those I'm a And maybe it It numbers million in something custom these about that. Matt, give where wondering think you're revenue are going actual AI AI is up some million, granularity AI us $XXX numbers sense, us October? that some customer targets, then right? And the give report. tick like will if you the more probably can you -- in we us $XXX maybe in was

and year. to for We this here, the just call keep broader $X.X had set for Maybe targets year Yes. $X.X billion a it level investors Tim. billion of next higher the on at for

X, X/X electro-optics. in As and billion was are months I was custom the the ago, X $X.X what that -- It just we both said earlier, about said electro-optics contributing. day, of what, was AI

The other X/X was in custom.

but those are the very And custom is going strong so better. we're now. both loaded, through ramp a of Obviously, back-end doing right

strong. But of in the both So those both we're I not custom be that calling numbers is going out this typically next you aggregate can the very have upsized leave year -- ramp well achieve next slope and in of year quarter. all for we're as I'll as continues to them by terms to at And now. it tell revenue of

Ross from comes question Bank. Next Seymore Deutsche with

current accretive stability the for one stuff as business relative Well, the for scenarios either I on carries of and at margins, gross be the But know margin Congrats it an sounds coming year. strong year takes merchant margin of would on the puts we the growth gross lower end should I line just revenue is of in and give us this operating a way? the it next how year? results But is big on idea commentary to think you most like concern as the and through about mean people level those think custom what could and guide. the have we may the back. next be appreciate I the potentially you, the

Yes.

continue is trend the really year. to think next way think to that into that for I about

next then better I And continue where addition, year at similar to continue the code you're overall, But the to then management, absorption. year. benefit going year. offsetting line you that continue get top looking look in we nicely, do see we're very so OpEx the as be from in it's in products ZIP growing at not think see the from our both that And continued merchant you in when custom. we growth recovery And to good OpEx disciplined next growth and the to guiding really full then

expect so line ton bottom leverage to and we do drive down next to a the of year. And margin operating

Ross, could if I add. just

growing GM improving demand laying to out. so up, I a from see in QX, to bit Willem needs the center picked guide need of As non-AI we're recovers Bookings the even faster. that to. where think play Enterprise side very to said, back quarter then backlog. Carrier, little growth data with pleased And mid-single. We this have We're and QX in third

to of going And core get really all year into then those recover where got to that's businesses traditional factor. sign. to positive That's course, one we've So a to. next see be

we as we As well, a earlier year. said revenue next higher anticipate lot

sort really So the that's overhead that's a going on And then of going manufacturing factor much to be, how extent going to well. absorption. is as help custom to be to

looking we're out very all outlook said, relative management our we're next our year. there as a in bit. at spending Willem and need our play that. confident for on to But does That So to OpEx plan

And very targets GM the our lies. set, excited margin feel where of confident to independent that so operating we're very and that path we've kind of in

that's these as more markets to right There'll where come Ross. headed recover. So now, be we're

comes from Bank next of America. Vivek question Your with Arya

side, gig know your views I X-nanometer in the but or just on competitors? Matt, your the out business, AI Taiwan to landscape Marvell's in on the the merchant years then do silicon. in these industry a transceivers? so moves all these your changes see any challenge was you competitors captive from X I custom changes of was to side X.XX competitive of XXX and the hoping DSP any get X as lay in your on to to I when similarly, industry X the competitive transitions both views important see per landscape get little the DSP any hoping business? the next competitive parts your in XXXX in On dominance you in X do AI there to compute, bit custom And parts

No problem, Vivek. Yes.

into break the it maybe two me Let mentioned. you pieces

So been into of through dynamics competitive got been from remember, on the competitive there's the these acquisition this, optics the a as And market. it's all and DSP you side, Inphi. beginning. look, We

share we're a an Primarily Now one, intensify. And Marvell there's the the because, right? consistently maintained So DSPs, gotten only have and extremely components standpoint. sort going forward. includes broadband of But as TIAs. it market big, now executed has integration would positioned we this we've analog we've this and market drivers and Inphi -- area high very also, well of through full from engineering the platform like in

the also well have hyperscalers solution module the directly. and We with complete partnerships the as architecture and vendors as

finally, that have a And say the road as map terms continue in we performance cadence, we're and of to would best-in-class power the delivering. I the well

on feel we So very these good transitions.

an very front the shipping As went this XXX those products transition to we're successfully. quarter. gig XXX-gig example, of start through we The in us, ones going

Our but to platform do Vivek, going per XXX feel team the and be what positioned. of we with competitive, and well really the X.X-terabit It's we can we DSPs, have. go gig off lane, very is excited actually

the to in playing ready road a type a and them terms it's I effort. yield, sort advanced map of of tremendous our And everything. get I/O, chips, out billion into package packaging, work manufacturing it, capability, these to transistor service parallel. best-in-class X not of on These or like a massive thesis It's having ability are up, that one chips design custom the ship in next of them silicon, increases piece think it's technology having be on XXX to these execute the and It's actually piece but complexity just volume, et is nanometers, about so given products. them go then cetera, of the to in

on point And area this view, the look so it think one when have of very that, we that we large really really well. be the from we And to And scaled in we and is partners the still capable amount to going term, up of at full given to in providers strategy. as custom that's competitor that we going winning AI, side, do Marvell require it's solution like a especially long compete. see think activity

two current the competitive dynamic. those status So of from a that's

Your next Cowen. Matt with question TD comes from Ramsay

your Matt, I a little longer-term up compute antennas a to on business. question wanted went custom ask bit. My

script, the business. just generation not some but was to multi-generation of in relationships, the effect of One something of with I the the custom lines think, in single relationships customers the

And so I wanted to explore that a bit. little

investors ramping from questions programs how on get the and in confident but you do now, that generation that those. we subsequent are the not As are

you as win your just question, software that. And to in the the will think end pretty isn't you second might and being those much but do up think merchant a part this on evaluating maybe So I of evaluating that's as you're for company as guys well. for and or to versus question engines speak custom could your deployed? compute what programs that the compute, be get How important I visibility being they're run suppliers? volume competitors not

we I executed And custom I think of -- we over designs, them Matt. competitors Thanks, have mean, into last upsided have a area tremendously as international and in wherever won one whatever Yes. get. from the these production. so programs. now been we Look, been said is, we has They signaled of they're these years in lot there's since even far, we this our from ramping in noise X.X of question reality I won the terms particular. some in your is and despite when think

you of the that deeper job. we pivot In as in amount part our a quickly, the do have diminishing doing on a put engagements customers view to of is one you're desire a it's assuming these, of to a into great return of board absolutely all multi-generational because work to there this, get these across the too see we

about we good bottom is the it, very line. So Matt, feel

for these we customer AI generations additional at AI multiple across engagements customers. silicon. had different that as won the an multiple day, an example, we're We for announced, have types We last on of doing just ICs

are tracking those of well. all And

So the I moment. say can that's all at

look our I and believe important there well what you also think term you to reliable positioned. going to being what's is got I we be around we're if the for the results multigenerations, a are long and partner long-term you over to outlook -- gave at extremely what relative think the that's thesis

from Christopher with question Rolland Susquehanna. comes Next

Inphi results. understood about the $X.XX have I on of talked 'XX. If Perhaps looks in going this an be question And in profile like XQ, talk ramping you're million, you exciting primarily. Congrats Matt, about into pretty you that correctly, I and can the that. to that's XQ. XQ ramp, what it

The for node. on I if think -- be that would is it the maybe you could means economics, you fantastic. all guys, what the that Street place over this about But even and talk

The as well would an going gig think be are workhorse $X.XX Yes. of deploy way customers to shipments Thanks, planning initial products seeing early. still our see ago. when at to to how year we now are that right production. introduced that it's XXX these gig million. newer is more a launches and coming are this and still is about to We support the to they're even market going the were the OFC in next are start first example, into now. having still as know into going platform area, but it, I year great as high-volume see to end a some It's XXX it, though Chris. we Yes, lot We'll

is for exactly. I way, probably timing be what question well for a customers get There's looking really and to we transition. the closer start only of call end at the The to thinking. be better in important step to So and But going no are be question. either an for opportunities It's those on positioned Chris, 'XX to it's of year, which we'll going of our as year. think that comment the the calendar both we're hard we -- next

with Harlan JPMorgan. Your question next comes from Sur

to anticipated see multiple to growth HDD guys the And expect forward. strong strong growth in outlook. those the growth cloud. to sort We've continue of Good of now nearline quarters seen going

if ramps I Is SSD all to addition guys happen. half PCIe to In years, the I the a data in think platforms HPM a There to this base is memory enterprise of you on think, more know next-generation numerous strength advanced been those complex contributing on logic fairly potential that, have, piece of ramping. of sort I center these then silicon. for the It's next-generation are finally side, for customers a starting about couple And it's the die. business? next-gen second but thinking of customization kind GenX are architectures.

here. upcoming programs. You lot for guys opportunities I'm custom these of have of wondering any you're if winning ASIC some a IP

two me take Thanks, Yes. Harlan. Yes, let the pieces.

On the very first we're center see one, pleased to in storage. the data recovery

a is consumed, kind We this that called there trend up quite basically way too million like and hasn't we but supply I confidence it been It's getting of the its we chain market X recovery. on like steady out back as frankly, nice over and bottomed been just it's had that's to great downturn over on way. because see that inventories now And commentary a revitalizes. on which quarter as severe spike. quarter. It back time. just it's time. see to of we're think was the We yet, gives had year, And quarter, a back turn, been last pretty us It's more low great. that every that saw. $XXX not It's growing basically the return

think, and platform have I how of memory standpoint we ASIC you we the current then on to that next had a as much for be mentioned, I the going at how it's to intensive in going key that to extremely are, important. memory be, looking solution remarks and that a prepared how they're our is HBM also even how from of set AI part just positioning and accelerators And as one it's given the interconnect complex together is, think, offerings but my And actually all it of key stitch generation. the

a as offering So our standpoint. custom IP accelerators that and the to that table developing from Marvell is bring of platform for part key will that's a AI

Next with Fargo. question comes from Wells Rakers Aaron

data wanted I opportunity. center ask about switching to the

could the participate kind Now that fiscal of us opportunity in kind think about market, should we we visibility like to forward you XX.XT that that in a the of any the terms that's build-outs these AI in of of more fabric just Marvell? if at ramp, next going year. how appreciating thought should to in silicons expect give how But

that get investments like question. an positioned. in we in, this in Investor we on future Marvell to have our the the the we're and and standpoint while well we're out with for platform. interest, did road tremendous our to for year and to very at here that this engineering custom also We think very from Marvell technologies market, We And photonics. strong generation to silicon leader the believe, a the production with into now we relative product opportunity XX.XT it's X-nanometer Marvell map, basically, relative -- silicon in XX.XT we're to Day this Innovium go thanks also product we had is being interconnect think compelling not we're Aaron, then to We we in relative full in only strategic the . And to AI. interest to success the lead platform, after as outlined player great see but do starting into a cycle well. pretty on customer, today, bringing the even quickly asset smaller integrating

going Aaron, providing full we production, quite kind now. that develops, it sizing from into and terms early when doing of go it this technology what forward well, yet to we be. to right actually we feel back in think It's it we're still that, updates of So look around, the good but standpoint we're to bore as on but of not can bring is

Your James. next Raymond comes Srinivas with Pajjuri question from

businesses, My see question is nice to about for recovering think the them traditional you're both as It's well. Matt. of I growth into guiding QX sequential and

do I'm once And think Given is levels. these about, think on I wondering do from that we basis? last they're rate think to down a XX%, its XX% is get how think down down you almost just much, And quarterly guess, about the we of I when so other there? businesses? run the then growth year's one normalized there, longer-term how

right, Thanks for significantly question. have you're a year-over-year businesses those down And perspective. the from yes, Great. Yes. been

and is right, that we've seen post-pandemic in that build-out went the then the also ordering having and we've then too this with mid-single people both that is occurred growing flat much relative third the up of the overshoot the than Some as that seen the now due faster over carrier a then to that across for deal bookings first fourth The half have all go enterprise quarter on business guiding to good of to and fueled industry it. having pickup and that well. also improved dynamics quarter sort in and inventory news and after

an to it we and run annualized think to line have rate So all $X.X billion businesses way to it, back, $X billion on of trying basis. of call maybe we of in The believe we're positive. is of about sight aggregate, $X businesses about that's both those those both drive each, back billion provide to

X QX, rocketed XG believe changed very We first market kind up So assume well we the the as in should that, QX. for as, we XG. forward, fairly you and half. setup It's business coming content the is in achievable, next up And hit that the bottom planned XG in year, but the right that if then that's or we're back monitoring We enterprise, in coming now. had them, go term, a kind Investor these a of then with X, signaled the that we've done then And and we've a in when -- gain, share to And last our going content for all example. But growers, markets you market always Days, grows a probably of mid-single be little long to at years, a say, standpoint. in some from was do of little bit can you grade. great very up low better. trajectory. to

we think those kind can about I of -- if to execute. areas, growth mid-single for think in maybe And whatever, our in investors those rates continue of types to being plus ranges,

accretive of I very businesses for that's are they're term profitable safe. they're and growth they're fairly be long they Marvell, markets and enormous the important think part to great portfolio. and not necessarily, very going but because They're they're

think how So about color to it. additional that's some on

and got data back we to step return overweight. to sure today a with We're We dollars. you we've going businesses. think area are just investing great, continue XX% in But to financial best a accelerated We've R&D opportunity our that make if continuing our center. of that in those that AI grow We're great there. got we place our revenue pivot the is infrastructure. from R&D precious And standpoint, this to put

Marvell healthy long a data and only about really and way driving carrier the going forward, bigger that's maintaining think getting and enterprise in term. so center to very And business

Quinn question next Bolton from with comes Needham. Your

follow question, a ask it, if up. I'll but you don't answer maybe I'll

target You guys give not, on of of Is of a billion you're I'll the product the a a And about up to can quantification something $X $X.X when closer for AI. to with billion that year. this I upside are AI think sudden us billion and follow $X.X question. upside in all than talking $X.X mean you nice revs? if any sort you billion

sort Yes. think I months But obviously guiding also for the revenue think And -- QX we're if higher from mid-teens to is QX, than much day. up data going extremely center then it. when data look driving AI. and growing and of overall we billion in had few in saying is back right, we be with like AI company even whole the strong a then AI of that don't fresh at center our $X.X I where you update

fourth is second the we'll we're very draw really exit clearly, standpoint, but a sight probably sure. can an quarter. then exceeding line clearly next the healthy of year again, be X.X. You good from because That's it, level to at And a by the for

is you portfolio? XX%, kind I answering gig Of The business, DCI you the of might different see a ER. Electro-Optics don't of Or product total thoughts prior to XX% question, percentage ramping there if DCI is gig starting know the XXX kind total is just mind on XXX or of ship that traction. latest now, demand you give us?

Yes, this extremely basically with well, a you customers. in spreadsheet that added then -- just we and it, gig get you at to percentage of many as It's I would X acquired just know, franchises say has about don't interconnect business business. and and if have Quinn. XXX $XXX look I think because, I it's out been done and the customer I -- calculate can XXX it where frankly, now million-ish as But gig we've you were mean that platform. we it if quite give dramatically had of additional -- and at when we've XXX I gig business they added -- we've kept kind was grown was think then, back across

for and a strategic business it's So been very Marvell. important

then in XXX And front very and then in map road that your point, getting us, at term, aggressively, DCI. for X.XX to is gig invested both of longer

an and investing technologies So X different gangbusters these of each to key today, generation They're we going interconnect. a market that have leadership. after but aggressively very in we're generation there's plus out, now the also maintain

Your Harsh next Sandler. Kumar question comes Piper with from

to coming some you First that do and it, businesses optimistic but major of wanted enthusiastic this term drivers Matt, about me all turning. you major along, point are of even Stories as to ASIC, my seem extremely Could about congratulations that's however give well mid strong guide. ask you custom let near as of of just want products, year. outlook? the all, next on I very year hitting next call the it you the giving you, near, talk

have had past, we silicon levered that as center. then off, and in broad think starting taken for see actually that I to data in won, the range financials. Well, them ones custom you're several in there's we And AI of our been were the to a just outlined that programs Yes.

reason but bookings talking simple, ramps we're planning we're backlog and have maybe and is our next excited to I capacity not And about mean getting next we the so we're and generation. year, make it the we're for too

And years so to taped went -- get they came to quickly trying these in ago And that the out which and PI and few they design to make back, from once sure did. think get worked I this they're ramping. relatively they now a was trying chips execute wins qualified them to then

feels it you I the your bookings when have strong backlog but it's evolution, and your you So of mean from good you planning future a together. part really and you're and just have outlook customer have

very and of in the we to strong using into from do. it. to them their can't So glory kind partner, and terms sure the it using go key deploy as make mean, our I -- that workloads aggressively of ambitions that's they very they conviction the Marvell do really their But all they're and get them what kind I chips are to their of for customers them, us let and help and there the all deploy using to go us backdrop in is thing. on silicon let programs commitment need plus deploy there but what their we're they with to we'll go have achieve

question last Paribas. BNP And Ackerman with from Karl comes our

your are you. to view outside growing of the China? you of breadth talk on you a the seeking I position in to titans for because XXX-gig cloud diversify U.S. be procurement have that seen share evidence have electro-optics, titans of that opportunity Could cloud And transceivers appear that your you ask anchors optical electro optics would the industry-leading ramping about second given half?

say in broadly Karl. market we're Thanks, is pretty I'd in area. Yes. this high us -- share just aggregate for

and pretty efforts example, as their So acceptable. trying say are make it. is international modules, everybody. we is chain They that about you suppliers risk and engaged they I well with mentioned supply to that's from have the also by are diversify folks as both space supply sure there an would chains that geopolitical into a to -- What chain U.S.-based there kind I hyperscale thing. care of real a across concerns to the that supply supply about tend And about of trend the be diversification chain, much think customers really

out quite there. for going mentioned shift. being to fine. to look, a relative concerns ecosystem you of major very we're -- kind sure broad should with been has be just So partnerships I this has years, going happy -- of many any those We've everybody. been This case, any frankly, be underway not and there's I'm driven think we to just in work

competitive we've can. revenue support to and So as stayed, well, I and everybody tracked and as neutral kind much very relative how with we to those of ship pretty we've very think,

And that's question, I the Anything it. or else, Karl. Willem So thanks think Ashish? for

Yes, I Thanks, it. think that's Matt.

Okay. Thanks for and Really conferences. to the then think catch-ups call. Thanks, we're all on also and at appreciate look the for I the joining. everybody Operator, when can we I forward everybody. the callbacks road end it, the in

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