Marvell Technology sees strong revenue growth from AI chip demand

From Nasdaq: 2025-03-13 04:15:00

Chipmaker Marvell Technology (NASDAQ: MRVL) surprised investors with strong revenue and earnings growth in its fiscal Q4 results, leading to a 20% stock drop. The data center business received a boost from demand for AI chips, positioning the company for sustained growth.

Marvell’s Q4 revenue increased by 27% year over year to $1.82 billion, with a 30% rise in non-GAAP net income to $0.60 per share. Despite solid guidance, the stock fell due to negative AI stock sentiment. However, the company’s outlook remains positive, driven by growing demand for ASICs and custom AI processors.

Marvell’s custom AI processors are in high demand by tech giants like Amazon and Microsoft, leading to an 88% revenue increase in fiscal 2025. The data center segment, which generated 75% of revenue, is expected to continue growing. Marvell aims to exceed $2.5 billion in AI chip sales in fiscal 2026, indicating strong future prospects.

Investors have a second chance to capitalize on Marvell’s growth potential as the stock is on track to deliver significant gains. With a projected earnings per share of $4.65 in three years, the stock price could reach $116, representing a 70% increase. The market may reward Marvell’s growth with a premium valuation, making it an attractive investment opportunity.



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