Marvell Technology Group Ltd. (NASDAQ:MRVL) reported record third-quarter revenue and raised its guidance for data center growth, driven by strong demand for its products and a new acquisition aimed at expanding its AI capabilities.
The semiconductor company posted Q3 revenue of $2.08 billion, surpassing analysts’ estimates of $2.07 billion and marking a 37% increase from a year earlier.
Non-GAAP earnings per share came in at $0.76, slightly above the $0.74 expected by analysts.
Net revenue as reported by the company reached a record $2.08 billion, while non-GAAP gross margin stood at 59.7%.
“Marvell delivered record third-quarter revenue of $2.075 billion, exceeding the midpoint of guidance, driven by strong demand for our data center products,” CEO Matt Murphy said.
The company is guiding for full-year revenue growth expected to exceed 40%, Murphy added.
Marvell also announced the acquisition of Celestial AI for $3.25 billion in cash and stock, adding the startup’s Photonic Fabric optical interconnect technology to its portfolio. The company expects the acquisition to accelerate next-generation AI data center connectivity, with Celestial projected to reach an annualized $500 million run rate by FY’28 and double that by the end of FY’29.
For Q4, Marvell forecasts revenue of $2.2 billion, above Wall Street’s estimate of $2.17 billion, and non-GAAP EPS of $0.74 to $0.84, compared with a $0.77 consensus.
Wedbush analysts said Marvell’s outlook reflects accelerating data center demand, citing cloud spending now expected to rise more than 30% versus prior estimates of 18%. The firm highlighted expectations for interconnects to grow faster than overall cloud spending, custom revenues to increase by at least 20%, and networking and storage sales to rise 15%, up from prior guidance of 10%.
Shares of Marvell were up 7.4% in Wednesday morning trading.