Analyst(s): Richard Gordon, Daniel Newman
Publication Date: March 10, 2025
Marvell’s Q4 FY 2025 earnings report highlights strong AI-driven growth, with data center revenue surging 78% YoY, now accounting for 75% of total sales. The company’s custom AI silicon and interconnect solutions entered high-volume production, driving record quarterly revenue of $1.82 billion.
What is Covered in this Article:
- Marvell’s Q4 FY 2025 financial results
- AI and cloud drive record data center revenue, now 75% of total sales.
- Custom AI silicon ramps up, securing multi-year hyperscaler partnerships.
- AI-specific networking and memory solutions gain traction.
- Non-Data Center end markets show mixed trends
- AI momentum positions Marvell for sustained growth in FY 2026 and beyond.
The News: Marvell Technology, Inc. (NASDAQ: MRVL) reported its Q4 FY 2025 results, with revenue of $1.82 billion, exceeding the consensus estimates of $1.8 billion and reflecting a 27% year-on-year (YoY) increase. By end-market, revenues surged in Data center (+78% YoY), offsetting weakness in Enterprise networking (-35% YoY), Carrier infrastructure (-38% YoY), and Consumer (-38% YoY). Meanwhile, Automotive/industrial revenue increased by 4% YoY. The company achieved a non-GAAP gross margin of 60.1% (Q4 FY 2024: 63.9%) and a non-GAAP operating margin of 33.7%, which was slightly below the Q4 FY 2024 figure of 33.8%. Non-GAAP net income stood at $531.4 million, marking a 32.3% YoY increase, while non-GAAP diluted earnings per share (EPS) was $0.60 (versus the consensus estimate of $0.59), up from $0.46 in Q4 FY 2024.
“Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products,” said Matt Murphy, Chairman and CEO of Marvell. “We are well positioned for a strong start to FY 2026. We expect first-quarter revenue growth of over 60% YoY at the mid-point of guidance, and we anticipate strong revenue growth for the full fiscal year.”
Marvell Q4 FY 2025 Reports 27% Revenue Growth, AI Custom Chips Drive Momentum
Analyst Take: Marvell’s Q4 FY 2025 results highlight its continued momentum in AI-driven growth, with record data center revenue, deepening hyperscaler partnerships, and ongoing investments in custom AI silicon. While AI and cloud remain dominant forces, the company is also experiencing a steady recovery in enterprise networking and carrier infrastructure. However, consumer and industrial markets continue to follow cyclical patterns. Looking ahead, the ramp-up of multi-generational AI chips and a growing focus on efficiency-driven AI architectures position Marvell for sustained expansion in FY 2026 and beyond.
AI and Cloud Continue to Drive Data Center Growth
Marvell’s data center revenue surged to $1.4 billion in Q4 FY 2025, marking a 78% year-over-year increase and a 24% sequential jump. AI and cloud demand contributed 75% of total sales. AI now accounts for over half of the company’s data center revenue, highlighting Marvell’s central role in AI infrastructure.
Strong demand for its industry-leading 800-gigabit pulse amplitude modulation (800G PAM) digital signal processors (DSPs) and 400-gigabit ZR data center interconnect (400ZR DCI) products drove revenue growth in its electro-optics segment. Marvell also began shipping its 1.6-terabit PAM DSP (1.6T PAM DSP) built on a 5-nanometer process while introducing a next-generation 3nm version that cuts optical module power consumption by over 20%, supporting the scaling of AI workloads.
The company continues to advance its Co-Packaged Optics (CPO) and Low-Power Optics (LPO) technologies, designed to boost bandwidth and reduce latency for AI clusters. Looking ahead, Marvell anticipates double-digit sequential growth in AI and cloud revenue in Q1 FY 2026, helping to offset a seasonal decline in the on-premise portion of the data center market. With AI and cloud-driven infrastructure gaining further traction, Marvell is well-positioned to maintain its competitive edge in data center silicon.
Expanding Custom AI Chip Development with Hyperscalers
Marvell’s custom AI silicon business is rapidly scaling, with two AI accelerator (XPU) programs now in high-volume production and a third hyperscaler engagement underway. CEO Matt Murphy confirmed that the company is already developing the next-generation AI XPU for its lead hyperscaler customer, ensuring revenue continuity into FY 2027 and beyond.
As hyperscalers increasingly prioritize bespoke AI accelerators, Marvell is expanding its custom silicon pipeline beyond compute, incorporating networking and memory architectures. The company secured new design wins for custom network interface cards (NICs) and Compute Express Link (CXL)-based memory pooling solutions, further broadening its portfolio.
Marvell is also pushing the boundaries of manufacturing technology, accelerating the transition to a 2-nanometer process and integrating high-bandwidth memory (HBM) solutions to enhance AI compute performance and energy efficiency. With multi-generational AI engagements growing across hyperscalers, Marvell is poised to maintain its leadership in custom AI infrastructure through FY 2026 and beyond.
AI Efficiency Models: A Potential Shift in Semiconductor Demand
The emergence of efficiency-driven AI models like China’s DeepSeek V3 is reshaping traditional AI training approaches. By achieving high performance with fewer GPUs and lower costs, these models may prompt hyperscalers to rethink hardware investments, potentially shifting focus from large-scale, general-purpose clusters to more specialized AI accelerators.
However, AI infrastructure spending remains strong, with industry leaders like Meta, Microsoft, AWS, and Google continuing to invest billions in AI accelerators to sustain their competitive edge. This ongoing demand ensures that high-performance GPUs, custom AI XPUs, and advanced interconnect solutions remain essential to AI development.
For Marvell, this evolution reinforces the growing need for AI-optimized networking, memory pooling, and custom silicon. As hyperscalers seek greater efficiency without sacrificing performance, Marvell’s tailored XPUs and CXL-based memory solutions position it to support the next generation of AI architectures while maintaining strong demand in the AI semiconductor market.
Recovery in Non-Data Center End Markets Shows Mixed Trends
Marvell’s enterprise networking and carrier infrastructure segments are showing signs of recovery, with revenue rising 18% sequentially and another 10% growth projected for Q1 FY 2026. However, shipments still lag end-market consumption, signaling a potential upside as supply constraints ease.
The automotive and industrial segment posted a modest 3% sequential increase but is expected to decline in Q1 due to the uneven nature of industrial orders. Meanwhile, the consumer segment saw an 8% sequential drop, with Marvell forecasting a steeper 35% decline in Q1, largely driven by seasonal gaming and consumer electronics softness. Full-year consumer revenue is projected to hold steady at around $300 million, with no immediate growth catalysts.
While networking and carrier markets continue to stabilize, the consumer and industrial segments remain subject to cyclical fluctuations. As Marvell focuses more on AI-driven expansion, ensuring stability in its non-data center businesses will be essential for maintaining the overall revenue balance.
Guidance and Outlook: AI Momentum Drives Growth Trajectory
Marvell projects Q1 FY2026 revenue of $1.875 billion, reflecting 62% YoY growth, driven by sustained AI and cloud demand. However, some forecasts had anticipated revenue closer to $2 billion, and Marvell’s guidance landed at the lower end of bullish expectations, triggering investor disappointment, with the stock plunging 20% – its worst single-day fall since 2001. The company expects a non-GAAP gross margin of approximately 60% and non-GAAP diluted EPS of $0.61 ± $0.05.
Meanwhile, AI revenue is set to surpass Marvell’s initial $2.5 billion FY 2026 target, with continued AI XPU ramps and deepening hyperscaler partnerships reinforcing its growth trajectory. With AI infrastructure scaling rapidly, Marvell remains a key enabler of next-generation AI compute ecosystems, positioning itself for continued expansion in FY 2026 and beyond.
See the full press release on Marvell’s Q4 FY 2025 earnings on the Marvell website.
Daniel Newman and his co-host of The Six Five Webcast, Patrick Moorhead of Moor Insights and Strategy discusses Marvell’s earnings in their latest episode. Check it out here and be sure to subscribe to The Six Five Webcast so you never miss an episode.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other insights from The Futurum Group:
Marvell Q3 FY2025: AI & Cloud Growth Propel Revenue Amid Restructuring
Marvell HBM Compute Architecture Ready to Transform Cloud AI Acceleration
Marvell Unveils CPO Innovations Prepared to Drive XPU Architecture Breakthroughs
Author Information
Richard Gordon is Vice President & Practice Lead, Semiconductors for The Futurum Group. He has been involved in the semiconductor industry for more than 30 years, first in engineering and then in technology and market research, industry analysis, and business advisory.
For many years, Richard led Gartner's Semiconductor and Electronics practice, building a 20-person global team covering all aspects of semiconductor industry research, from manufacturing to chip markets and end applications. Having served on Gartner's Senior Research Board and as Gartner's Chief Forecaster, Richard has extensive experience in developing and implementing methodologies for market sizing, share and forecasting, to deliver data, analysis and insights about the competitive landscape, technology roadmaps, and market growth drivers.
Richard is a sought-after technology industry analyst, both as a trusted advisor to clients and also as an expert commentator speaking at industry events and appearing on live TV shows such as CNBC.
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
