Marvell Technology recently reported notable growth in its data center AI segment, despite overall revenues for the second quarter of fiscal 2025 being down 5% year-on-year. The company’s net revenue reached $1.273 billion, exceeding the midpoint of its guidance. Its net loss was $193.3 million, an improvement from the $207.5 million loss in the same period last year.
“Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp,” said Matt Murphy, Marvell’s chairman and CEO.
The data center business segment saw record revenue of $881 million, marking a 92% year-over-year and 8% sequential increase. This growth, driven by high demand for AI-driven solutions, positions Marvell to seize new opportunities within the data center market. Murphy highlighted that the company aims to broaden its end-to-end product portfolio to meet the critical interconnect needs of its data center customers.
Marvell anticipates growth in its enterprise networking and carrier infrastructure markets, which are expected to rebound in the upcoming fiscal third quarter. The company forecasts a sequential growth rate of 14% in consolidated revenue.
AI remains a driving force in Marvell’s custom silicon business. “As investment in AI and accelerated computing continues to surge, Tier 1 cloud providers are increasingly focused on using custom silicon to improve their data center TCO and drive differentiation,” Murphy noted. He explained that the accelerated pace of new chip releases, coupled with increased complexity, underscores the importance of AI in Marvell’s growth strategy.
Looking ahead, Marvell expects sequential revenue acceleration in the third quarter, predominantly driven by AI custom silicon. The ongoing ramp-up of Marvell’s first two AI custom chips into production volume and the development of additional projects demonstrate the company’s commitment to leveraging AI for future growth.
In conclusion, Marvell’s strategic focus on AI and its data center business, despite a challenging year-on-year revenue scenario, signals a promising outlook. The anticipated rebound in enterprise and carrier markets further supports this optimism, setting the stage for robust growth in the coming quarters.
