Marvell Technology Inc (NASDAQ:MRVL) achieved record first-quarter revenue for fiscal 2026, but shares fell nearly 4% in premarket trading after results came in line with analyst forecasts.
The company posted net revenue of $1.895 billion, representing a 63% year-over-year increase, slightly surpassing the $1.88 billion consensus and exceeding the midpoint of prior guidance by $20 million. Non-GAAP diluted earnings per share were $0.62, matching Wall Street estimates, while GAAP earnings stood at $0.20 per share for the quarter.
“This growth is driven by strong AI demand in the data center market, where our revenue benefits from rapid scaling of custom silicon programs and robust shipments of electro-optics products,” said Matt Murphy, Marvell’s Chairman and CEO. He emphasized, “As the industry moves toward building custom AI infrastructure, Marvell is uniquely positioned at the center of this transformation.”
A key highlight in the earnings release was Marvell’s confirmation of its ongoing custom chip partnerships. The company reaffirmed its role in Amazon’s 3nm custom chip program, with analysts noting the importance of a separate but equally significant chip expected in the second half of 2026. Additionally, Marvell underscored multi-generation custom chip programs with Microsoft, slated to begin in 2026.
While earnings per share revisions are expected to be limited near term, analysts remain optimistic that Marvell’s pipeline validation—likely elaborated upon at its June 17 analyst event—will bolster confidence in its projected sales growth exceeding 20%. Barclays analysts noted Marvell “remains a ‘show me’ story on the ASIC front until share dynamics clarify, but the risk-reward profile is attractive around $60 per share.”
Marvell posted non-GAAP gross margins of 59.8% and GAAP gross margins of 50.3%. Operational cash flow totaled $332.9 million, underscoring strong capital generation amid robust product demand.
Looking ahead, management forecasted second-quarter revenue around $2.0 billion, with non-GAAP EPS expected near $0.67 plus or minus $0.05—figures broadly in line with market consensus. Non-GAAP gross margin guidance remains steady at 59%-60%, maintaining profitability comparable to Q1.
Despite these solid projections, investors reacted cautiously, suggesting that expectations for a stronger beat or more aggressive guidance in the second half tied to the AI infrastructure boom may have already been priced in.
Marvell plans to host a Custom AI Investor Event on June 17, showcasing product innovations and long-term ambitions in AI infrastructure. The event will feature executive presentations and a live Q&A session with investors, aiming to reinforce confidence in Marvell’s custom silicon strategy.
As AI continues to transform the semiconductor sector, Marvell remains a key player in accelerating infrastructure transitions, though market expectations appear to be outpacing incremental gains.