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Key Takeaways
- Marvell Technology is set to release its first-quarter earnings report for the 2025 fiscal year after the bell on Thursday.
- The tech company is expected to report falling revenue sequentially and from the year-ago period, while net income is projected to show a narrowing loss sequentially, but a widening loss from the year-ago quarter, according to analyst estimates compiled by Visible Alpha.
- Investors are likely to be watching data center revenue, as the segment is exposed to Marvell’s AI-related offerings.
- Marvell could also provide additional details about how AI is affecting revenue in its earnings report.
Marvell Technology (MRVL) is set to report earnings for the first quarter of its 2025 fiscal year after the bell on Thursday, with investors likely watching for growth in the company’s data center segment and any updates related to artificial intelligence (AI).
Analysts project Marvell’s revenue to be $1.15 billion for the first quarter of fiscal 2025, down from the previous quarter and the same period a year earlier, according to estimates compiled by Visible Alpha.
Analysts expect a net loss of $196.6 million, narrowing from the final quarter of fiscal 2024, but a more significant loss than the $168.9 million loss recorded in the year-ago period. Analysts anticipate a loss of 20 cents for the company’s diluted earnings per share (EPS), unchanged from the same period a year earlier but narrowed from the prior quarter’s loss of 45 cents per share.
Marvell is reporting earnings after giving a weaker-than-expected outlook for the quarter, with CEO Matt Murphy saying the company anticipates “soft demand impacting consumer, carrier infrastructure, and enterprise networking in the near term,” though he added the company expects “revenue declines in these end markets to be behind us after the first quarter,” with a recovery in the second half of fiscal 2025.
UBS analysts said the core business is now “where it ‘can’t fall off the floor,’ and as such should start to grind higher in coming quarters as MRVL starts to ship more in line with consumption” supported by AI. JPMorgan analysts said they anticipate that first quarter results will be “in line/slightly better and represent the trough point for the full year as the team’s AI ASIC/Optical programs accelerate.”
| Analyst Estimates for Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | |
| Revenue | $1.15 billion | $1.43 billion | $1.32 billion |
| (Diluted) Earnings Per Share | (20 cents) | (45 cents) | (20 cents) |
| Net Income | ($196.6 million) |
($392.7 million) | ($168.9 million) |
Key Metric: Data Center Segment Growth
Marvell’s data center segment, which encompasses several of its AI-related offerings, accounted for 40% of the company’s total revenue in the 2024 fiscal year.
The data center business is made up of cloud and on-premise AI systems and servers as well as ethernet switching, storage systems, networks, and interconnection.
Data center revenue was $765.3 million for the final quarter of fiscal 2024. Analysts project the segment will post $786.8 million in revenue for the first quarter of fiscal 2025, which would represent more than 80% growth year-over-year.
Business Spotlight: AI-Related Programs and Products
Marvell held an event focused on AI infrastructure the month before earnings, telling investors that 30% of its 2025 revenue would be AI-related.
The company projected that AI revenue will be more than $1.5 billion, or 30% of its total revenue in the 2025 fiscal year, triple the AI share in the year-ago period. Of the projected AI revenue, the company expects two-thirds to be from its conductivity products and another third from custom computing offerings.
In fiscal 2024, Marvell reported more than $550 million in AI-related revenue, making up around 10% of total revenue, triple the roughly $200 million recorded in fiscal 2023, representing 3% of all revenue.
Bank of America Securities analysts highlighted that since Marvell’s last earnings report there is “greater clarity/confidence about custom ASIC ramp” for top hyperscaler customers, “solid demand for 800 Gig/1.6 Terabit/s optical transceivers,” and “improvement in storage (stronger HDD pricing) and potential troughing in enterprise demand.”
JPMorgan analysts said Marvell’s “AI-related programs/products (optical/ASICs) are on track to drive a strong CY24 growth profile,” with AI revenue on track to triple year-over-year.
Marvell shares have gained over 26% since the start of 2024, at $76.05 as of 2:30 p.m. ET Wednesday.