Marvell First Take: Results broadly in line with market expectations, with growth on the top line driven mainly by data center interconnect products.

Adj. GPM came in at 58.3%, flat QoQ.

Starting this fiscal year, the company consolidated segment disclosures from five to two: Data Center, and Comm & Other.

Data Center was the key growth driver this quarter, up 19% QoQ.

Demand for connectivity products led the increase.

With a full-year outlook provided, next-quarter guidance matters less.

We infer revenues of approx. $3.15bn and $3.7bn for the next two quarters.

Both imply QoQ growth of around 15–20%.

More importantly, management gave a two-year revenue outlook.

FY2027/FY2028 revenues are projected at $12bn/$18bn (vs. prior quarter guidance of $11.5bn/$16bn).

Consensus ahead of the print was already ~$11.8bn and $17–17.5bn; vs. NVDA’s explosive guide, Marvell’s outlook is clearly softer.

Dolphin Research believes Marvell’s post-market drop is mainly due to two factors.

1) After announcing a partnership with Alphabet, management did not raise its custom ASIC outlook.

It reads more like a framework that gives away economics.

2) For FY2028, the company guides 60%+ growth for Data Center, while NVDA, despite its size, guided >70% growth for next year.

The stock had traded at a premium to NVDA and peers, reflecting expectations for share gains in AI chips.

However, with no raise to custom ASIC and a slower Data Center growth outlook vs. NVDA, the market found this hard to accept.

For more, follow Dolphin Research’s subsequent commentary and Trans. $Marvell Tech(MRVL.US)