Shares of Marvell Technologies (Nasdaq: mrvl) Followed after the tax income report of 2025 in the fourth quarter, despite the fact that the company saw the revenue growth (AI) of Strong Data Center and Artificial Intelligence (AI). The share has now been more than 40% decrease.
Let us take a closer look at the latest report and the guidance of the chip maker to see if this sale is a good opportunity to buy the shares.
Marvell is linked to the data center market because it offers network chips, connectivity solutions and data storage controllers. As such, it has benefited from the AI infrastructurebuild -out that is currently taking place. The company also helps customers to design their own custom AI chips and offers some intellectual property in the neighborhood AmazonThe adapted AI chips.
The power of Marvell in this area was seen in Q4, with its data center income that rises 78% year after year in the quarter to $ 1.37 billion. The company has credited a strong demand for its electro-optics products, which are used for high-speed data transmission and the disaster of its adapted AI chip program for strong growth. The turnover of data centers accounted for 75% of the top line in the quarter.
However, the total turnover rose only 27% to $ 1.82 billion, because other areas of his company saw steep falls. That result was just before the center of management guidance. It registered $ 171 million in Enterprise network income, a decrease of 35% over the year, but by 14% compared to the third quarter. The turnover of the carrier infrastructure was 38% to $ 106 million, but also increased 25% consecutively. Marvell said it saw a recovery in both markets. Consumer’s turnover in the meantime fell 38% years to year to $ 89 million, while the income of the car increased by 4% to $ 86 million.
|
|
Data center |
Network |
Carrier -infrastructure |
Consumer |
Auto |
Total |
|---|---|---|---|---|---|---|
|
Gain |
$ 1.37 billion |
$ 171 million |
$ 106 million |
$ 89 million |
$ 86 million |
$ 1.82 billion |
|
Yoy -gain |
78% |
(35%) |
(38%) |
(38%) |
4% |
27% |
|
QoQ -increase |
24% |
14% |
25% |
(8%) |
3% |
20% |
Data source: Marvell Q4 Profit press release. Yoy = year after year. QoQ = quarter to quarter.
Custom profit per share (EPS) climbed 30% year after year to $ 0.60. That was just before the center of the prospects of $ 0.59 management.
The company generated $ 514 million operational cash flow for the quarter and $ 1.68 billion for the year, which was a record. Marvell also purchased $ 200 million in stock in the quarter.
Looking ahead, Marvell led to a tax turnover of 2026 first quarter of $ 1.875 billion, plus or minus 5%, which represents a growth of around 60%. It is looking for adapted EPS from $ 0.56 to $ 0.67.
