Marvell Technology (MRVL, Financial) announced its financial results for the fourth quarter of fiscal year 2025, ending January 2025. The company reported revenue of $1.82 billion, marking a 27.4% increase year-over-year, aligning with market expectations. The growth was primarily driven by its ASIC and data center segments. Marvell achieved a net profit of $200 million, reversing previous losses, with an adjusted operating profit of $390 million, up from $216 million in the prior quarter.
The data center segment emerged as the largest growth driver, contributing over 70% of the company's revenue, largely due to increased AI demand. This segment generated $1.366 billion in revenue, a 78.5% year-over-year increase. Notably, AI-related revenue reached approximately $700 million, fueled by custom ASIC demand from major clients like Amazon.
Other segments, such as enterprise networking and carrier infrastructure, showed signs of recovery. Revenue for these segments was $171 million and $106 million, respectively, with both experiencing double-digit sequential growth. Meanwhile, consumer electronics and automotive/industrial segments reported revenues of $89 million and $86 million, respectively, with automotive showing growth despite a sluggish performance in consumer electronics and industrial products.
Looking ahead, Marvell expects Q1 fiscal 2026 revenue to be around $1.88 billion, slightly above market expectations of $1.87 billion. The company projects a GAAP gross margin of 50.5%, exceeding the market forecast of 50%.
Despite strong current performance, Marvell's guidance suggests a slowdown in AI business growth next quarter. The anticipated AI revenue is around $800 million, with ASIC revenue contributing approximately $400 million, indicating a sequential growth decline to below 20%.
Marvell's data center business, particularly its AI segment, remains a focal point for the market. The company's partnerships with Amazon and Google have been crucial, but the market is concerned about the impact of capital expenditure trends and competition on Marvell's future growth.
