---
title: "Marvell: AI Growth 'Stalls', Where is the Next 'Trump Card'?"
description: "Marvell Technology (MRVL.O) released its Q1 2026 fiscal year earnings (as of April 2025) after the U.S. market closed at 12:00 AM Beijing Time on May 30: 1. Overall Performance: Revenue reached $1.9 b"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/30184584.md"
published_at: "2025-05-30T02:28:57.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Marvell: AI Growth 'Stalls', Where is the Next 'Trump Card'?

Marvell Technology (MRVL.O) released its Q1 2026 fiscal year earnings (ending April 2025) after U.S. market close on May 30, Beijing time:

**1\. Overall Performance**: **Revenue of $1.9 billion, up 4.3% QoQ**, largely in line with expectations of $1.88 billion. The $80 million QoQ revenue increase was primarily driven by data center and AI businesses.

Adjusted gross margin was 59.2%, down 0.3 ppts QoQ. The declining margin trend stems from lower-margin custom ASIC businesses. Structural growth in these segments continues to pressure overall margins.

**2\. Data Center**: **Revenue of $1.44 billion, up 5.5% QoQ**, fueled by AI demand. Data center now accounts for 76% of total revenue. **Dolphin Research estimates $830 million in AI revenue this quarter, up $90 million QoQ**, while non-AI segments saw slight declines.

**3\. Next Quarter Guidance: Revenue of $2 billion matches consensus**, with growth again led by data center/AI; **GAAP gross margin stable at 50.5%**. Dolphin projects adjusted gross margin at 59.1% (-0.1 ppt QoQ).

**Dolphin Research View: Meets expectations but lacks positive catalysts.**

**As markets focus on AI-driven growth potential, attention on**$Marvell Tech(MRVL.US) **centers on sequential revenue momentum**.

While current results and guidance met expectations, the absence of accelerating growth disappoints investors expecting valuation support.

**Both total and data center revenue growth rates are decelerating. Markets anticipated faster growth to justify valuations.**

**This earnings report suggests the current product cycle (Amazon's Trainium 2 chips) is peaking, with new products needed for the next leg up. Despite hitting targets, growth concerns persist.**

**Key focus areas for Marvell: AI business, ASIC clients, and China exposure:**

**1) AI Business: Unlike Nvidia's sovereign AI narrative, Marvell remains tied to cloud providers' capex cycles. While cloud capex dipped QoQ, Marvell still grew data center revenue 5%, gaining ASIC market share as expected.**

**The core thesis of "custom ASICs capturing share" remains intact, but slowing sequential growth ($200M-$200M-$90M last 3 quarters) weakens confidence.**

**2) ASIC Clients: Amazon's Trainium 2 drives current AI growth, but momentum appears limited. Next catalysts depend on Microsoft's Maia Gen2 and Amazon's Trainium 3 in 2026.**

**3) China Business: At 40% of revenue, China remains Marvell's largest market. Postponed investor day (now 2026) and tech tensions introduce uncertainty, though guidance shows no immediate impact.**

**At $56.5B market cap, Marvell trades at ~30x adjusted 2026 P/E (+44% revenue, -1.1ppt margins, 10.2% tax rate).**

**With AI growth slowing between product cycles and China risks lingering, Marvell lacks near-term catalysts beyond future ASIC launches.**

For Dolphin Research's full analysis, see below:

**I. Marvell Business Overview**

Marvell expanded from storage tech into data centers via acquisitions. Data center now drives ~75% of revenue:

**1) Data Center (75%)**: High-growth segment powered by ASIC demand. Includes SSD controllers, Ethernet switches (Innovium), and custom chips (AWS).

**2) Other (25%)**: Legacy segments like 5G infrastructure (declining), consumer electronics, and automotive/industrial (minor).

**II. Financials: In-Line Results**

**2.1 Revenue**

**$1.9B revenue (+4.3% QoQ) matched consensus. The $80M QoQ increase (vs. prior $200M) fuels growth concerns.**

**2.2 Margins**

**GAAP gross margin at 50.3%; adjusted at 59.2% (-0.3ppt QoQ). Structural pressure from ASIC mix continues.**

**2.3 Opex**

**Flat QoQ at $682M. R&D up 6.6% to $500M (26.8% of revenue); SG&A down 6.8% to $186M (9.8%).**

**2.4 Net Income**

**Adjusted net income flat QoQ at $391M. Acquisition costs historically distort GAAP results.**

**III. Segment Details: Waiting for New Products**

**3.1 Data Center**

**$1.44B (+5.5% QoQ), driven by AI ASICs. Dolphin estimates $830M AI revenue (+$93M QoQ).**

**Growth slowing ($200M→$200M→$93M) despite cloud share gains. Next catalysts: Microsoft Maia Gen2/Amazon Trainium 3 in 2026.**

**3.2 Other Segments**

**Enterprise Networking**: $178M; **Carrier Infrastructure**: $138M (both rebounding). **Consumer**: $63M (+50% YoY). **Auto/Industrial**: $76M (-2.4% YoY).

<End>

Dolphin Research Marvell Archives:

Earnings:

Mar 6, 2025 Call: [Marvell (Transcript): Data Center Growth Stalls](https://longportapp.cn/zh-CN/topics/27852608)

Mar 6, 2025 Report: [Marvell: Another AI Reality Check](https://longportapp.cn/zh-CN/topics/27847825)

Deep Dives:

Jan 14, 2025: [ASIC Wars: Can Marvell Challenge Broadcom?](https://longportapp.cn/zh-CN/topics/26604690)

Jan 2, 2025: [Marvell: The $1T Broadcom Challenger](https://longportapp.cn/zh-CN/topics/26395071)

Disclosures: [Dolphin Research Disclaimer](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

### Related Stocks

- [MRVL.US - Marvell Tech](https://longbridge.com/en/quote/MRVL.US.md)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
