Marvell is a fabless developer of standard and semi-custom semiconductor products, such as complex system-on-chip architectures and custom application-specific integrated circuits (ASICs). The company’s vast IP portfolio spans computing, optics, networking, storage, and security.

A very important part of the company’s business is its partnership with Amazon Web Services, which includes collaboration across multiple AWS products and the use of AWS cloud infrastructure.

Marvell makes a broad range of data center semiconductors for AWS, including custom AI products, optical digital signal processors, data center interconnect optical modules, and Ethernet switching silicon solutions.

Marvell Q2 revenue grows 58% to $2 billion year over year.

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Marvell Q2 revenue grows 58% to $2 billion year over year

On August 28, Marvell  (MRVL)  reported its results for Q2 of fiscal 2026.

During the earnings call, Marvell chairman and CEO Matt Murphy said:

Our data center end market continued its strong momentum, growing 69% year over year, fueled by robust AI demand. We also saw solid recovery in our enterprise networking and carrier infrastructure end markets, which collectively grew 43% year over year.

Here are the earnings highlights:

  • Revenue of $2 billion, an increase of 58% YoY
  • Gross margin of 50.4%, an increase of 420 bps YoY
  • Net income of $194.8 million, compared to a net loss of $193.3 million in Q2 2025
  • Diluted earnings per share of $0.22 compared to a loss per share of $0.22 in Q2 2025

The company provided an outlook for Q3 of fiscal year 2026:

  • Revenue of $2,060 million +/- 5%
  • Gross margin in the range of 51.5% to 52.0%
  • Diluted net income per share of $2.03 +/- $0.05

Bank of America analysts say Marvell has “transformed into an IP powerhouse”

Marvell CEO was a guest on the JP Morgan Fireside Chat webcast on September 24.

After watching the webcast, Bank of America analyst Vivek Arya and his team updated their opinions on Marvell shares.

Analysts said the CEO’s confident appearance on the webcast, coupled with higher buyback activity, improves their optimism about the company’s fiscal year 2027 and 2028 prospects.

Arya said he sees improved visibility for the calendar year 2026 (fiscal 2027) data center, with optics expected to continue growing faster than cloud capex and custom silicon at least in line with capex.

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He noted another positive: Marvell announced a $5 billion repurchase program, on top of its existing approximately $1.7 billion remaining plan, totaling nearly 10% of outstanding stock.

Analysts noted downside risk factors for Marvell:

  • Continued lack of visibility in key custom ASIC projects
  • Competition in AI compute
  • Potential slowdown in legacy storage, enterprise networking, and carrier markets

Upside risks:

  • Faster-than-anticipated ramp/visibility in major custom ASIC projects
  • Continued growth in DSP-based pluggable market, versus new LPO/LRO techs
  • Share gains in emerging AEC/CPO/scale-up switch markets against incumbents

Arya reiterated a neutral rating and raised the target price from $78 to $88, based on 26 multiple of his estimate for pro forma EPS for fiscal year 2027 (calendar year 2026). This is generally in line with the historical multiple median of 24 and within historical range of 13 to 46.

Key takeaways:

  • Marvell Q2 revenue increased 58% YoY to $2 billion
  • Bank of America raised the price target of MRVL stock to $88
  • The company’s buyback activity is seen as a positive

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