Marvell Technology’s data center business generated $2.171 billion in fiscal 2027 second-quarter revenue, accounting for 79% of the company’s total sales and helping push quarterly revenue to a record $2.739 billion. The result, reported by Marvell, exceeded the $2.712 billion market consensus and was followed by guidance for another sharp increase in the current quarter.
The company expects fiscal 2027 third-quarter revenue of about $3.150 billion at the midpoint of its outlook, above the $3.030 billion consensus estimate. That forecast implies roughly 15% sequential growth from the second quarter, placing data center demand at the center of Marvell’s near-term outlook as cloud operators and large technology companies continue building AI-focused computing infrastructure.
Adjusted earnings per diluted share reached $0.94 in the second quarter, narrowly exceeding the $0.93 consensus estimate. GAAP diluted earnings per share were $0.33.
Data center chips drive record quarter
Marvell said total revenue rose 37% from a year earlier and 13% from the prior quarter. The company’s data center segment expanded faster than the overall business, with revenue climbing 46% year over year and 18% quarter over quarter.
The segment’s contribution has increased from 76% of total company revenue in the prior quarter to 79% in the latest period. That concentration gives Marvell greater exposure to spending cycles among hyperscale cloud providers and enterprise operators deploying AI servers, networking equipment, storage systems, and specialized computing hardware.
Marvell produces semiconductor products used in data center connectivity and processing, including networking chips that move data between high-performance computing systems. The latest figures suggest that demand for this equipment is rising alongside the construction of increasingly dense AI clusters, where network performance can become as critical as raw computing capacity.
Communication and other revenue totaled $568 million, according to Marvell’s report. That segment rose 10% from a year earlier but declined 3% from the previous quarter. The contrast with the data center division shows how heavily the company’s quarterly growth now depends on AI-related infrastructure rather than a broad acceleration across all of its end markets.
The two reported business segments—data center and communication and other—combined to equal Marvell’s $2.739 billion in quarterly revenue.
Outlook points to another sequential increase
Marvell’s third-quarter revenue guidance calls for a midpoint of $3.150 billion, which would represent a substantial step up from the record just reported. The company also forecast adjusted earnings per diluted share of $1.10, compared with the $1.08 consensus estimate.
The outlook indicates that Marvell expects demand to remain strong even as the company prepares for slightly lower adjusted gross margins. Non-GAAP gross margin is expected to range from 57.5% to 58.5% in the third quarter, with a midpoint of 58.0%. That compares with a 58.9% non-GAAP gross margin in the second quarter.
A modest margin decline alongside rapid revenue growth can reflect a changing mix of products, customer pricing, manufacturing costs, or the timing of new deployments. Marvell did not break down the drivers of its third-quarter gross-margin outlook in the figures provided, though its guidance indicates that rising sales are not expected to translate into an equally large increase in profitability per dollar of revenue.
The company forecast non-GAAP operating expenses of approximately $655 million for the third quarter and expected diluted weighted-average shares of about 921 million.
Profit measures show acquisition and compensation costs
Marvell reported a GAAP gross margin of 53.1% for the second quarter, compared with a 58.9% non-GAAP gross margin. The company attributed the difference between the measures to stock-based compensation and amortization related to acquisitions.
GAAP figures include expenses required under standard accounting rules, while Marvell’s non-GAAP results exclude specified items such as the compensation and acquisition-related amortization costs identified by the company. The $0.33 GAAP diluted earnings-per-share result similarly sits well below the $0.94 adjusted figure, illustrating the effect these excluded charges have on reported profitability.
For traders watching semiconductor companies tied to AI infrastructure, the revenue mix may carry more weight than the small earnings beat. Marvell has moved to a position where nearly four-fifths of quarterly sales come from data center customers, and its next-quarter forecast suggests that concentration could deepen if the business continues expanding faster than its other segments.
That growth profile also creates a more direct connection between Marvell’s results and the capital-spending decisions of a relatively concentrated group of major data center operators. Large orders for networking and custom silicon can support rapid gains, while changes in deployment schedules could have an outsized effect on a company whose revenue is increasingly centered on one market.
The report provides evidence of sustained demand for physical AI infrastructure, particularly the chips and networking equipment needed to connect large computing systems. It does not by itself establish a trading case for cryptocurrencies, decentralized physical infrastructure projects, or AI-linked tokens, whose performance depends on distinct technology, token-economics, liquidity, and market-risk factors.
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