Marvell Posts Record Sales on AI Focus

Marvell Technology(NASDAQ:MRVL) reported record revenue of $2.006 billion in the fiscal second quarter ended Aug. 3, 2025 (+58% year-over-year revenue growth, +6% sequential revenue growth), non-GAAP EPS of $0.67 (+123% year-over-year (non-GAAP)), and operating cash flow of $462 million. Management announced the $2.5 billion divestiture of the Automotive Ethernet business, completed at the beginning of the fiscal third quarter ending Nov. 1, 2025, representing a major strategic pivot to AI-focused data center markets, with data center comprised 74% of total revenue. The following analysis highlights key developments in market focus, operating leverage, and custom silicon momentum.Management executed a $2.5 billion all-cash sale of the Automotive Ethernet business at the start of the fiscal third quarter, with proceeds to bolster buybacks and data center R&D. Data center end market revenue has more than doubled from 34% of total in 2024 to 74% in 2026, and is expected to continue outpacing other segments as new classification aligns reporting to this core strategy.This transaction and reporting realignment cement Marvell’s transformation into an AI and cloud-centric chip supplier, likely improving capital efficiency and competitive focus while simplifying investor narratives around long-term growth drivers.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool