Marvell raises guidance as AI bookings lift Q1 revenue

Marvell Technology reported fiscal first-quarter revenue of $2.42 billion, a company record, and raised its revenue guidance for the current quarter to $2.7 billion. The company attributed the increase to AI-related bookings and rising demand for its data center products.

Revenue for the quarter rose 28% year over year. Marvell reported adjusted earnings per share of $0.80, compared with a consensus estimate of $0.79. Adjusted gross margin for the period was 58.9%. Operational cash flow reached $638.8 million, the company’s highest on record for a single quarter.

The data center segment expanded 27% in the quarter. Marvell said the growth was supported by the commercial ramp of custom application-specific integrated circuits (ASICs) and optical digital signal processors (DSPs), and by customer deployments of 800G and 1.6T connectivity. The company described the surge in bookings as concentrated in custom accelerators, optical interconnects and other data center components that customers use to scale inference and networking capacity.

Marvell noted recent acquisitions, including Celestial AI and XConn Technologies, as additions that enhance its offerings in optical scale-up networking and CXL memory switching. The company also referenced an announced NVLink Fusion integration with Nvidia as part of its product and partnership activity.

The raised guidance to $2.7 billion would represent roughly 35% year-over-year growth for the current quarter if realized. The company characterized the bookings that underlie the guidance as “exceptional AI-related bookings.” Shares of Marvell have climbed more than 180% since their early-February low and are trading above multiple major moving averages.

Marvell is a Nasdaq-listed semiconductor company that supplies custom accelerators, networking silicon and optical components to cloud providers and hyperscalers. The company’s recent product ramps and bookings for AI-focused hardware and interconnects were cited as drivers of the quarter’s revenue and cash-flow results.