Marvell (MRVL, Financial) reported impressive Q3 earnings, driven by strong demand for its custom AI chips and improvements in non-data center markets. This performance has sent its stock soaring and positively impacted other semiconductor stocks like Broadcom (AVGO, Financial), Qualcomm (QCOM, Financial), and NVIDIA (NVDA, Financial). CEO Matthew Murphy highlighted a "new era of growth" for the company.
- MRVL's revenue had previously declined year-over-year in five of the past six quarters. However, in Q3 2025, revenue growth accelerated to nearly 7%. The Q4 revenue guidance suggests a robust year-over-year growth of 25%.
- Data Center revenue nearly doubled year-over-year to a record $1.10 billion, making up 73% of total revenue. Demand from cloud hyperscalers like Amazon Web Services (AMZN, Financial), Google (GOOG, Financial), and Microsoft (MSFT, Financial) for MRVL's AI chips is robust.
- MRVL forecasts low-to-mid 20% sequential growth for Q4 in Data Center, driven by its AI chips: Trainium, Axion, Inferentia, and Maia-2, offering an alternative to NVDA's GPUs.
- Revenue for non-data center products fell by 51% year-over-year to $415 million, but signs of recovery are evident. Enterprise Networking and Carrier revenue grew by 4% sequentially, with mid-teens growth expected in Q4.
- Consumer and Automotive/Industrial markets saw a 9% quarter-over-quarter revenue increase, with modest growth expected for Automotive in Q4. Due to gaming seasonality, Consumer revenue may decline mid-teens quarter-over-quarter before rebounding in Q2.
MRVL is positioning itself as a leading AI player in the semiconductor industry, alongside NVIDIA (NVDA, Financial) and AMD. The demand for its custom AI chips is surging, and the company anticipates $2.5 billion in AI network and custom processor chip revenue next year.
