Marvell Lifts Long-Term Targets as AI Demand Boosts 2Q Profit, Revenue -- Update

By Elias Schisgall

Marvell Technology lifted its guidance for the current and upcoming fiscal years after artificial-intelligence demand boosted profit and revenue in the fiscal second quarter.

The decision to boost guidance was driven by growth in the semiconductor company's data-center business, where revenue rose 46% year-over-year to $2.17 billion in the second quarter, Chief Executive Officer Matt Murphy told analysts on a Thursday call.

"The key takeaway for today is clear: The strength of our data center business continues to exceed our prior expectations," Murphy said.

Marvell now expects revenue in the current fiscal year to reach $12 billion, up $500 million from its prior guidance. It also forecast fiscal 2028 revenue of $18 billion, an increase of $1.5 billion from its prior view.

Analysts polled by FactSet currently expect revenue of $11.56 billion in the current fiscal year, rising to $16.91 billion in fiscal 2028.

Shares of Marvell were down 6.5% to $225.83 in after-hours trading on Thursday. The stock closed down 1.5% at $241.45, having nearly tripled in value this year.

Murphy said that Marvell is seeing "a significant acceleration" in demand for its custom business, driven by AI hyperscalers who are increasingly looking to design their own computer chips. The custom business is expected to double year-over-year in fiscal 2028 and accelerate further the following year, Murphy said.

Marvell's hyperscaler custom chip customers include Amazon and Google, the latter of which received a warrant from Marvell last week to buy nearly 59 million shares at an exercise price of $206.58.

The company reported a second-quarter profit of $308 million, or 33 cents a share, in the quarter ended Aug. 1. That compares with a profit of $194.8 million, or 22 cents a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were 94 cents a share. Analysts polled by FactSet were expecting 93 cents a share.

Revenue rose to $2.74 billion from $2.01 billion a year earlier. Analysts were expecting revenue of $2.72 billion.

For the current third quarter, the company is projecting adjusted earnings of between $1.05 and $1.15 a share on revenue of $3.15 billion, plus or minus 5%.

Analysts are expecting $1.08 a share in adjusted earnings and revenue of $3.04 billion.

Write to Elias Schisgall at elias.schisgall@wsj.com

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August 27, 2026 18:29 ET (22:29 GMT)