Marvell Technology Targets $1.15 bn Revenue Despite AI Push

Marvell Technology Group, a provider of data infrastructure semiconductor solutions, has released its financial results for the fourth fiscal quarter and fiscal year ended February 3, 2024.
Marvell at MWC 2019In the fourth quarter of fiscal 2024, Marvell has recorded revenue of $1.427 billion, contributing to a total fiscal year revenue of $5.508 billion. The company attributed this success to significant growth in its data center end market revenue, which surged by 38 percent sequentially and 54 percent year-over-year.

Matt Murphy, Chairman and CEO of Marvell, in its earnings report, has highlighted the pivotal role of artificial intelligence (AI) in driving the company’s growth in the data center segment. He expressed confidence in Marvell’s position as a key facilitator of accelerated infrastructure for AI, anticipating further momentum in this technology paradigm.

Looking ahead to the first quarter of fiscal 2025, Murphy projected continued sequential growth in data center revenue. He also mentioned the company’s plans to introduce cloud-optimized silicon programs for AI, complementing its existing electro-optics franchise.

Despite forecasting soft demand in consumer, carrier infrastructure, and enterprise networking sectors in the near term, Murphy remained optimistic about a recovery in the second half of the fiscal year. He indicated that revenue declines in these end markets are expected to be temporary, with prospects for improvement on the horizon.

Marvell provided guidance for the first quarter of fiscal 2025, estimating revenue to be in the range of $1.150 billion +/- 5 percent, with a gross margin forecasted between 44.5 percent and 47.2 percent.

Marvell CEO Matt Murphy said that AI as a total percentage of revenue was 10 percent last fiscal year and would grow “meaningfully” in the company’s current fiscal year.

“AI is a key contributor to the total data center number, now north of 50 percent of the company total,” Murphy said. “It’s a huge transformation.”

Revenue for the company’s data center segment, which includes its custom AI chip business and networking equipment, rose 54 percent to $765.3 million.

Baburajan Kizhakedath