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Research Alert: Mrvl: Modest Beat And Raise; Custom Silicon And Optics To Drive Upside

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

MRVL posted Apr-Q revenue growth of 28% to $2.418B, slightly ahead of consensus, with non-GAAP EPS of $0.80 beating the $0.79 consensus and up from $0.62 in the prior-year quarter. The Data Center segment remains the primary growth engine, generating $1.833B (+27% Y/Y, +11% Q/Q) and representing 76% of total revenue. We believe strength is coming from AI-related bookings across 800G/1.6T scale-out optics, 51.2T Ethernet switches, and custom XPU solutions. Guidance exceeds expectations with Jul-Q revenue of $2.700B (5%), implying approximately 35% Y/Y growth, a modest acceleration from the pace in Apr-Q. Non-GAAP gross margin of 58.9% compressed 90 bps as expected, reflecting the strategic shift toward lower-margin custom silicon solutions in the expanding AI infrastructure market. The recently completed Celestial AI and XConn acquisitions are now contributing to results and positioning MRVL to capitalize on emerging optical interconnect opportunities.

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