So here's what happens when you're in the right place at the right time with the right chips. Marvell Technology, Inc. (MRVL) shares took off like a rocket in premarket trading on Friday, and it's not hard to see why. The company just dropped an earnings report that basically says, "Hey, remember that whole AI thing? We're making bank on it."
Let's talk numbers first, because that's where the story starts. For the fourth quarter, Marvell posted revenue of $2.22 billion. That's a hair above what analysts were expecting ($2.21 billion), and it represents a solid 22% jump from where they were a year ago. Adjusted earnings came in at 80 cents per share, which also edged out expectations by a penny. Not bad for a quarter's work.
But here's the thing with earnings reports—the past is nice, but investors really care about the future. And Marvell's management team was happy to paint a very, very bright picture.
The Road to $11 Billion
During the earnings call, an executive laid out some projections that got people's attention. The company now thinks its fiscal 2027 revenue will grow more than 30% year-over-year, landing at nearly $11 billion. Let that sink in for a second. That's the target.
Digging into the segments, the data center business is expected to be the real engine. Revenue there is projected to increase close to 50% year-over-year in fiscal 2028. The interconnect business—the stuff that helps all these AI systems talk to each other—is also expected to grow more than 50% annually.
On the customer side, the news is good too. The company said it's winning new business and expects to be supplying DCI modules to all five major U.S. hyperscalers this year. You know, the usual suspects who are building out massive AI infrastructure.
There's also a specific product ramp worth noting. The company confirmed it's on track for revenue from Celestial AI's CPO (that's co-packaged optics, for the uninitiated) to hit a $500 million annualized run rate by the fourth quarter of fiscal 2028. And then they expect that figure to double to $1 billion by the fourth quarter of fiscal 2029. That's not just growth; that's hockey-stick growth.
The CEO's Take
CEO Matt Murphy didn't hold back on the optimism. He pointed to "accelerated revenue growth into fiscal 2027," backed by what he called strong data center momentum and record bookings. It's the kind of language that makes growth investors smile.
For the immediate future, the company's guidance suggests the momentum isn't slowing. For the first quarter, Marvell is looking for revenue of about $2.40 billion and adjusted earnings of roughly 79 cents per share. It's a signal that they're confident the data center gold rush has legs.
