Marvell Technology Inc. saw its stock climb significantly after reporting financial results that surpassed Wall Street's expectations. The chipmaker delivered fourth-quarter earnings of 80 cents per share, beating the analyst consensus of 79 cents. Revenue for the period rose 22% to $2.219 billion, exceeding the target of $2.207 billion. Net income nearly doubled year-over-year, reaching $396.1 million.
For the current quarter, Marvell anticipates sales around $2.4 billion, surpassing the consensus estimate of $2.3 billion. The company's full-year revenue for fiscal 2026 reached $8.195 billion, a 42% increase from the previous year. Chief Executive Matt Murphy attributed this growth to "robust AI demand" and a record number of design wins expected to fuel future expansion.
Marvell plays a crucial role in designing custom AI processors for enterprises like Amazon Web Services Inc., and is believed to be working with Google Cloud and Microsoft Corp. The company is investing heavily to enhance its custom processor capabilities, recently acquiring networking startup Celestial AI Inc. for $5.5 billion to advance data center communications, and XConn Technologies Holdings Inc. for $550 million to bolster high-speed networking switches.
Analysts note that Marvell's custom chip program with AWS remains on track, alongside strong demand for its optical digital signal processors. With major hyperscale data center operators increasing capital expenditures, Marvell is strategically positioned for continued growth.