[News] Marvell Projects Robust Q4 Growth Fueled by AI Chip Demand

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IC design company Marvell announced its financial results for the third quarter of fiscal year 2025 (ending November 2024) on December 3. Its revenue increased by 7% year-over-year to USD 1.516 billion, exceeding the midpoint of its guidance released on August 29 by USD 66 million.

According to its press release, the company’s third-quarter 2025 revenue grew 19% sequentially, significantly exceeding the midpoint of its guidance.

For the fourth quarter, the company forecasts another 19% sequential revenue growth at the midpoint of its guidance, and its revenue growth year-over-year is expected to accelerate to 26%, citing the words from Marvell’s Chairman and CEO Matt Murphy.

Marvell projects that revenue for the fourth quarter of fiscal year 2025 (ending February 1, 2025) will reach USD 1.8 billion, as its press release states. The company has forecasted an adjusted gross margin of 60% for the fourth quarter.

A report from Reuters points out that Marvell’s fourth-quarter revenue projection is driven by strong demand for its custom AI chips, fueled by advancements in generative AI models.

The Reuters report highlights that while NVIDIA continues to dominate the AI processor market, tech companies are seeking to reduce reliance on NVIDIA’s supply-constrained semiconductors. This shift has created opportunities for companies like Marvell, as the report notes.

Marvell is also a key player in helping large cloud computing companies design custom chips. According to the Reuters report citing Marvell’s Chief Operations Officer, Chris Koopmans, the company began discussing custom chips for hyper-scale data center operators in 2020. Since then, this segment has grown into a significant revenue generator.

In the third quarter, Marvell’s data center segment revenue doubled year-over-year to USD 1.10 billion. However, its enterprise networking revenue fell 44% to USD 150.9 million, and its carrier revenue dropped 73% to USD 84.7 million.

Read more

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(Photo credit: Marvell)