Marvell: AI demand detonates data center business, revenue hits record high

On May 27, Marvell officially announced the company’s financial results for the first quarter of fiscal year 2027 (as of May 2, 2026).

As the world's leading data infrastructure semiconductor company, Marvell specializes in providing core chips and solutions for data centers, cloud computing, communication operators and enterprise networks. The company is cooperating with major global cloud service providers such as Amazon, Microsoft, and Google to promote the development of customized chips for related AI applications.

In the first quarter of fiscal year 2027, thanks to strong demand in the data center end market, Marvell's total revenue reached a record high of US$2.418 billion (approximately RMB 17.41 billion), a year-on-year increase of 28% and a month-on-month increase of 9%, which was US$18 million higher than the midpoint of the company's forecast guidance.

Among Marvell's various businesses, the data center segment performs most prominently. The business's first-quarter revenue also hit a record high, reaching US$1.833 billion (approximately RMB 13.20 billion), a year-on-year increase of 27% and a month-on-month increase of 11%. In addition, revenue from the communications and other business segments was US$585 million (approximately RMB 4.21 billion), a year-on-year increase of 29% and a month-on-month increase of 3%.

In terms of profitability, Marvell's gross profit margin in the first quarter was 52.1% and net profit was US$34.5 million based on U.S. Generally Accepted Accounting Principles (GAAP); gross profit margin was 58.9% and net profit was US$718 million based on non-GAAP calculations. At the same time, Marvell's operating cash flow also hit a record high of $638.8 million.

In terms of strategic expansion, Marvell successfully completed the acquisition of two technology companies, optical interconnect chip company Celestial AI and network equipment provider XConn, in February 2026, and incorporated the relevant results into its first-quarter financial report. In addition, Marvell also announced the acquisition of high-speed and low-power plasma silicon photonics company Polariton Technologies in April.

In terms of technical cooperation, in March, Marvell announced that it would jointly develop a new generation of Micro LED optical interconnect solutions with Mojo Vision, an American Micro LED microdisplay company.

Through multiple acquisitions and cooperation, Marvell is rapidly advancing the layout of its advanced optical interconnect technology business in the first quarter.

Looking ahead, Marvell has given extremely optimistic guidance for its second quarter fiscal 2027 performance. The company expects net revenue in the second quarter to reach approximately US$2.70 billion (approximately RMB 19.44 billion), plus or minus 5%, which also means an expected year-on-year growth rate of up to 35%. The GAAP gross profit margin in the second quarter is expected to be between 52.1% and 53.1%, and the non-GAAP gross profit margin is expected to be between 58.25% and 59.25%.

Marvell Chairman and CEO Matt Murphy said that the company is currently experiencing strong growth in artificial intelligence-related orders.

Market demand for Marvell's products has surged, including 800G and 1.6T scale-out optics, 51.2T Ethernet scale-out switches, scale-up optical solutions for NPO and CPO applications, scale-across modules, and customized XPU and XPU-attach solutions.

As a result, Marvell has significantly raised its overall revenue expectations for fiscal 2027 and fiscal 2028. Management predicts that the company's year-on-year revenue growth rate will continue to accelerate in each quarter throughout fiscal year 2027, and is expected to achieve a rapid growth of approximately 40% throughout the year, of which the full-year data center revenue is expected to increase by approximately 50% year-on-year. Driven by the continuous promotion of the artificial intelligence wave, Marvell's performance is expected to continue to grow rapidly. (Source: compiled by TrendForce Optical Communications)

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