Marvell Technology's Data Center Revenue Climbs as Networking Segment Struggles

Published 1 days agoMRVL

Marvell Technology's Data Center Revenue Climbs as Networking Segment Struggles

Marvell Technology announced robust growth in its data center segment for the first quarter of fiscal year 2025, with revenue soaring to $816 million. This marks an 87% increase compared to the same period last year and a 7% rise from the previous quarter. As reported by PR Newswire, this segment now contributes to 70% of Marvell's total revenue, fueled by rising demand for AI cloud applications and the introduction of custom AI compute programs.

Conversely, the enterprise networking segment experienced significant challenges, with revenue dropping to $153 million, which represents a 58% year-over-year decrease. According to Nasdaq, these results stemmed from a weak demand environment and inventory adjustments. This segment now makes up 13% of Marvell's overall revenue, highlighting its diminished contribution as compared to the thriving data center business.

Overall, Marvell's total revenue reached $1.16 billion for the quarter, surpassing analyst forecasts slightly, as noted by Investopedia. Looking ahead, the company anticipates a mid-single-digit sequential revenue growth in the upcoming quarter, driven by a scale-up in custom AI silicon. Despite the struggles in networking, Marvell's performance underscores its strong foothold in the burgeoning data center market.

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