Custom AI Silicon, Data Center Boom Likely to Propel MRVL Q1 Earnings

Marvell Technology, Inc. MRVL is set to report its first-quarter fiscal 2026 results on May 29, and investor attention is firmly focused on Marvell Technology’s surging AI-driven data center business.Marvell Technology has been experiencing robust adoption of its custom AI silicon and electro-optics solutions in recent quarters, cementing its position in the AI infrastructure market. With data center revenues now accounting for the bulk of its total sales, Marvell Technology is expected to show robust growth in this high-demand business.Click here to know how Marvell Technology’s overall fiscal first-quarter results are likely to be.Data Center Growth to Drive MRVL’s Q1 ResultsMarvell Technology’s data center segment is propelling the company’s growth, driven by the rising adoption of AI workloads across both hyperscale and enterprise markets. In the fourth quarter of fiscal 2025, the data center business reported record revenues of $1.37 billion, marking a 78.5% year-over-year increase and 24% sequential growth. The strong top-line growth in the data center segment was driven by rising demand for custom AI silicon, high-performance networking chips, and electro-optics solutions.For the first quarter, Marvell Technology anticipates that its data center revenues will grow in mid-single digits sequentially, backed by robust traction across its offerings and supply chain efficiency. Marvell Technology’s partnership with cloud computing leaders, including Amazon Web Services (“AWS”) through multi-year agreements, reinforces its leadership in delivering AI-optimized silicon solutions. Our model estimates suggest that first-quarter data center revenues will reach $1.395 billion, implying robust 71% year-over-year growth.Marvell Technology, Inc. Price and EPS Surprise Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. QuoteMRVL’s Custom AI Silicon is a Key Growth DriverMarvell Technology is experiencing robust demand for its AI semiconductor, offering on the back of its custom AI silicon programs. Marvell Technology recently ramped up its 100-billion-transistor AI accelerators, providing first-pass silicon capabilities to customers. These highly complex custom chips have allowed MRVL to secure deeper collaborations with hyperscale customers looking to optimize AI workloads with tailor-made solutions.Marvell Technology’s ability to design and manufacture high-performance, power-efficient AI processors gives it a competitive edge in the rapidly growing AI data center market, enabling it to expand its pipeline across multiple customers. The growing demand for custom AI silicon is anticipated to have driven the data center revenues in the first quarter.MRVL’s Electro-Optics & Networking to Boost SalesApart from custom silicon, Marvell Technology’s electro-optics and high-speed networking segments are also set to contribute significantly to first-quarter revenues. The company’s 800-gig PAM and 400ZR interconnect solutions have seen strong order momentum, helping hyperscalers manage the exponential growth in AI-generated data traffic.Additionally, Marvell Technology has begun shipments of its industry-leading 1.6T PAM DSP technology, which enhances bandwidth efficiency and energy savings for next-generation data center interconnects. Additionally, Marvell Technology expects its 3nm DSPs for 1.6T optics to reduce power consumption by 20%, giving it a strong reason for adoption among its customers.Weakness in Consumer & Industrial Markets: Concern for MRVLMarvell Technology’s industrial business is experiencing lumpy order patterns, and it anticipates the segment’s revenues to decline in high-single digits sequentially, partially offsetting the growth in the automotive business. MRVL is also anticipating its first-quarter fiscal 2026 revenues for its consumer end market to decline by approximately 35% sequentially due to gaming seasonality.Considering all these factors, the Zacks Consensus Estimate for Marvell Technology’s fiscal first-quarter revenues is pegged at $1.88 billion, indicating a year-over-year rise of 68.6% and a sequential growth of 3.5%.The Zacks Consensus Estimate for MRVL’s first-quarter earnings is pinned at 61 cents per share, indicating year-over-year growth of 154.7% and a sequential rise of 1.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)MRVL Zacks Rank & Stocks to ConsiderMarvell Technology currently carries a Zacks Rank #3 (Hold).Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.APH shares have gained 27.3% in the year-to-date period. The Zacks Consensus Estimate for APH’s full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting a growth of 32.33% from the year-ago quarter’s reported figure.JNPR shares have lost 3.7% in the year-to-date period. The Zacks Consensus Estimate for JNPR’s full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%.UPWK shares have lost 3.2% in the year-to-date period. The Zacks Consensus Estimate for UPWK’s full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter’s levels.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. 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