Marvell Technology jumps after solid Q1 guidance

Source Domain: sherwood.news

Marvell Technology’s robust outlook is carrying the day after the custom chip designer’s Q4 results came in only fractionally above estimates.

For the final quarter of its fiscal 2026, the custom chip designer reported:

Net revenue: $2.22 billion (estimate: $2.21 billion)

Adjusted net income per share: $0.80 (estimate: $0.79)

For Q1, management offered guidance for:

Net revenue: $2.4 billion, +/- 5% (estimate: $2.28 billion)

Adjusted net income per share: $0.79, +/- 5 cents (estimate: $0.75)

Shares are as much as 8% higher in post-market trading.

“Recall that during our CES fireside chat in January, management highlighted that short-term bookings were ‘on fire’ and that backlog and revenue visibility continue to expand. Since then, all four US cloud/hyperscalers have increased their capex growth expectations for the upcoming year, with aggregate capex now projected to reach $645B in 2026 (up 56% Y/Y),” wrote JPMorgan analyst Harlan Sur ahead of this release. “This strong spending environment is further validated by strong beats and guidance raises across the AI semiconductor supply chain (e.g., Macom, Astera Labs, Nvidia), and we expect Marvell to benefit from similar trends.”

There’s been massive uncertainty about the status of Marvell’s relationships with its two biggest hyperscaler clients going forward, with some analysts and media reports indicating that the firm was going to lose some of this business and others (like Sur) saying these custom chip programs remain on track.

That, and more, will be in focus during the conference call.

Source