Marvell Technology (MRVL) investor relations material

Business transformation and growth outlook

• Data center business has tripled since 2023, now representing 75% of total revenues, with AI-related revenues up over 6x in the same period.

• No expected revenue gap in custom AI silicon next year; strong demand signals and firmed-up plans support continued growth into 2027 and 2028.

• Custom business doubled in one year, projected to grow in line with CapEx (baseline 18%) next year, with new XPU programs contributing more significantly from 2027 onward.

• Optics business, now half of data center revenue, consistently outpaces CapEx growth, with 800G and 1.6T products driving future gains.

• Switching and storage segments show strong recovery and growth, with switching expected to reach triple previous baseline and storage rebounding to pre-pandemic levels.

Pipeline expansion and technology leadership

• Over 20 multigenerational custom XPU and XPU-attached design wins secured, up from 18 in June, representing about 10% of a $75 billion opportunity funnel.

• New wins expected to contribute meaningfully from 2028 onward, with annualized incremental revenue estimated by dividing total lifetime value over four years.

• Active engagement in next-generation 2nm and beyond designs, with multiple concurrent programs and strong execution on advanced IP.

• Scale-up networking and connectivity (within-rack) seen as a major future opportunity, leveraging switching, AOCs, AECs, and retimers, with investments in Ethernet, UALink, and PCIe protocols.

• Switching business, bolstered by Innovium acquisition, has doubled revenue and is on track for further growth with new high-performance products.

Financial strategy and capital allocation

• Announced $1 billion accelerated share repurchase and new $5 billion buyback authorization, reflecting strong free cash flow and confidence in future growth.

• Flexibility maintained for opportunistic M&A, with past acquisitions (Inphi, Avera, Innovium) driving significant business expansion.

• Board and management express high confidence in outlook, with Marvell recently ranking as the fastest-growing large semiconductor company in Q2.

• Emphasis on continued organic and inorganic growth, with a focus on value creation and maintaining a leading position in key technology segments.

• Leadership credits team execution and culture as key drivers of transformation and sustained performance.