Marvell at Bank of America Conference: Strategic Growth and Innovation

On Tuesday, 03 June 2025, Marvell Technology Inc (NASDAQ:MRVL) presented at the Bank of America Global Technology Conference 2025, showcasing its robust financial performance and strategic growth in key markets. While the company highlighted its record-breaking quarter and leadership in data center growth, it also addressed concerns about earnings revisions and competition.

Key Takeaways

• Marvell guided for its strongest quarter ever, projecting $2 billion in revenue.
• The data center business is expanding rapidly, with annual growth over 70%.
• Custom silicon programs are in production, contributing to revenue.
• Marvell is partnering with NVIDIA to enhance its technology offerings.
• The company plans to update its total addressable market estimates soon.

Financial Results

• Marvell anticipates a record quarter with $2 billion in revenue.
• The data center segment is growing at an impressive 70% annually.
• Core business revenue rebounded to $1.3 to $1.4 billion per quarter.
• The company has achieved an $8 billion annualized revenue run rate.

Operational Updates

Custom Silicon:

• Multiple custom silicon programs are currently in production.
• Marvell offers full turnkey solutions, setting itself apart from competitors.
• The company has succeeded with its five nanometer fleets, achieving zero or first pass success on massive chips.

Electro-Optics:

• Marvell leads in 400 gig, 800 gig, and 1.6T electro-optics technology.
• Collaboration with cable manufacturers aims to expand the active electrical cable (AEC) ecosystem.

NVIDIA Partnership:

• Marvell and NVIDIA are co-marketing IP and ensuring interoperability through NVLink.

Future Outlook

• Marvell plans to update its total addressable market estimates at an upcoming AI investor event.
• The company foresees significant opportunities in the active electrical cable market, transitioning to a PAM-based approach.

Q&A Highlights

Custom Silicon Competition:

• Marvell views the custom silicon market as a vast opportunity, with full turnkey solutions expected to dominate.

Dual Sourcing:

• The potential trend of customers using multiple ASIC vendors is noted but remains uncertain.

Modest Earnings Revisions:

• CEO Matt Murphy emphasized Marvell’s focus on consistent performance over "beat and raise" quarters.

Readers are encouraged to refer to the full transcript for more detailed insights.

Full transcript - Bank of America Global Technology Conference 2025:

Vivek Arya, Analyst, BofA Semiconductor team: Everyone. I’m Vivek Arya from BofA Semiconductor team and really delighted and honored to have the management team from Marvell join us this morning, Matt Murphy, CEO and Willem Minkes, CFO. I’ll go through typical fireside questions, but if you have anything you’d like to bring up, please feel free to raise your hand. But with that, a very warm welcome, Matt and Willem. Really appreciate you joining our conference.

Maybe Matt, let’s just give us a state of the union as you see it, a lot of kind of macro crosscurrents. So how are you seeing the demand environment right now versus what you thought at the start of the year? And then Bill can get through some of the more detailed questions.

Matt Murphy, CEO, Marvell: Yeah, great. Thanks Vivek. And it’s great to be here. I love coming to the conference. It’s great to see everybody here and also whoever’s listening in.

Yeah, a couple of things, maybe big picture to start, and then we can go dive as deep as you want. I think the first is, yeah, I’m actually very happy to see where we’re at right now given kind of to your point all the churn that’s gone on in the macro and the global and tariffs and all these things that I think, you know, investors and management teams have been concerned about. I think those those concerns are still sort of hanging out there, but the fact of the matter is, you know, we guided the the strongest quarter in the history of the company. And we guided $2,000,000,000, which I was thinking back, you know, and four years ago in q two, we guided we achieved actually, like, $10.76 or something, which was the first quarter with Inphi. And that was, like, when we crossed the billion dollar mark, and we were cracking the champagne, you know, per quarter, I’m saying.

Right. And it was like, how do we get this company up to 4,000,000,000? This is fantastic. And now basically, you know, four years later, it’s it’s it’s doubled, right, in terms of the the growth. And I think from a performance perspective, I couldn’t be more pleased.

I mean, our data center business is growing has been growing now annually at a 70% kind of plus clip, and that was off of a strong year ago compare. Right? This wasn’t like we had some bottom a year ago. And so those those numbers are sort of very, very competitive given our scale. And, I mean, just think about the overall data center business for Marvellas bigger than the entire company was basically a year ago.

Polco. Right. So so from that perspective, I think very, very, very excited. I think the other thing that’s really progressed has been, you know, the ramp, of the continued ramp, both of our connectivity and electro optics business. I think that the asset we purchased from Inphi plus all the good Marvell stuff we put into it, it’s performed very well.

And then, you know, there was a lot of concern in 2024 about custom and could it ramp or not, and are these programs real, and is the football gonna get pulled, and can you make it work to prod remember all these concerns. Is it even gonna happen? Right. Right? And now you look, and we started shipping high volume at the end of last year and now through the second half.

And and there’s multiple custom silicon programs now that are that are in production, future ones coming to production, and we’ll talk about that more at our at our custom silicon AI investor event in a couple weeks. But from an overall perspective, I’d say super solid. And then the final one, which is very encouraging is, you know, we had this very sort of strong post pandemic cyclical decline in some of our core business, right, which is carrier infrastructure and enterprise networking. And those bottomed at about a 900,000,000 a quarter a a year kind of run rate where really we think end demand is about 2,000,000,000, something like that. And so now you fast forward and based on our we’re at, like, one three to one four.

Right. So that’s on the way up, and it it didn’t come back. I think this stuff never happens linearly. Right? Never.

There’s no linearity in this sort of cyclical stuff in semis, but it took a little bit longer than we thought, I think, to rebound. But now the last couple quarters, we’ve seen kind of 10% plus, even mid teens sequential growth on that business. So you can see that fall through starting to happen now. Operating margins have expanded. So net net, we stand here given all the challenges in the world and all the dynamics, and I’m thrilled to have and the team and very proud of the Marvell team for have gotten the company to a revenue scale of, you know, an $8,000,000,000 annualized run rate with with a lot of gas in the tank on the go forward.

Vivek Arya, Analyst, BofA Semiconductor team: Right. Absolutely. So, Matt, let’s just walk through the different segments starting from the custom, right, custom compute side. Yeah. On this last earnings call, I think you really gave us a good flavor for how the program is ramping at your largest customer that you have this multigenerational thing.

And I noticed that the confidence was a lot more than or maybe at least externally, right, you were willing to share a lot more. So what changed, right, in the last three plus months to give you that confidence to give us a better forward view of how that program is shaping up?

Matt Murphy, CEO, Marvell: Yeah. I think there’s two things maybe to decouple. And this I think is the case with any kind of material piece of business or end market that we’ve gone after. You know, you sort of have your your bogey you said or your target. And then and are are you more or less confident on that?

And then there’s also as you as time progresses and you see progress, you can let out a little bit more information. Right? It kinda makes sense. Right. So from a confidence standpoint or kinda where we think things are landing, actually, nothing’s changed.

I mean, we had an AI investor event April of last year. ’20 ’4. Right. And we were getting, you know, questions about the multigenerational nature of some of these engagements. And what I said back then is that that’s what we believe to be happening, you know, pretty much across the board is because that is fundamentally the nature of these types of programs.

So, a lot of benefit in doing that. So, so from from that standpoint, actually, our expectations really nothing has changed. I think as times progressed, there’s certainly been an investor appetite to get more updates here. And then I think there’s kind of been an unprecedented level of noise and kind of it’s something I’ve never seen, this level of sort of kind of public discussion and news cycle on something that’s actually highly proprietary, you know? So we we have to balance that because ultimately, all that really matters here for us to grow the company in the long term is to take care of our customers, right, and make sure that we’re we’re really protecting their confidentiality.

And but at the same time, I understand the need for investors to get as much transparency as possible so so you guys can make decisions. So that’s the balance I try to strike every quarter. And so there was not a confidence change per se, but I think since things have elapsed another three months and we have more line of sight, we thought it would be helpful to investors to kind of Right. Reassure people that we still see strong growth in the coming year and years beyond on a number of these programs where there’s been doubt cast about whether they could continue or not. But we still strongly believe and we feel really good, and we’ll talk about the AI Silicon event.

I mean, the pipeline of opportunities that we’ve got across the board actually as the whole cloud network ultimately becomes more and more optimized and more and more customized, that’s really playing to our favor. Right. And it’s not just, you know, a couple of sockets and that sort of it. I mean, it’s actually I think the the the breadth and the the scale of some of these things will be will be interesting to talk about. Right.

But, yeah, so far so good. It’s it’s all tracking according to what we thought.

Vivek Arya, Analyst, BofA Semiconductor team: I know you will you know, I assume you will talk a lot more about this at the upcoming AI event. But give us a flavor, Matt, how should people think about, you know, Marvell versus some of your Asian, you know, counterparts? Right? What what helps you, you know, win business, and how is it different than the business models? Right?

Because people tend to equate Right. The two, And so I I think it’d be helpful to understand what makes, you know, you guys different.

Matt Murphy, CEO, Marvell: Yeah. Yeah. Happy to do that, and I think we’re we’re we’re also planning as part of this event to kind of break it down a little bit more simply for people because ultimately, if you’re you haven’t been doing this for a long time or you’re a generalist or you’re just trying to figure out what is all this all this mean, it might not be intuitive. But historically, the way it’s worked and the way it’s played out so far is that the that that companies, when they wanna do their own custom chip and this could be for AI. It could be for networking.

It could be for consumer. I mean, really anything you want. A lot of the companies that do this in house would want an ASIC. They typically have what’s called a front end design team. So that’s the architecture team.

That’s the team that’s gonna actually define the product, do the front end, you know, design. And then those companies don’t necessarily wanna spend all the money on what’s called the back end, which would be like the physical design, place and route, maybe package design. Some of those things, it doesn’t really make sense to get in house because you can use, I think, very low cost suppliers typically from Asia, right? Taiwan and China to some extent and so so that that whole design process gets augmented, right? Which is which is typically in physical designers called PD.

So, that’s where that expertise is typically laid, and then and then maybe they’ll license IP from other people. Or they’ll just use that as part of a a bigger chip project, but yet they’ll work with a big full turnkey supplier like us, right, or or or one of our competitors. And by full turnkey, I mean, we can do that. We can certainly do the back end. We can do the package design.

We can do the manufacturing, the test, but we can also contribute all the core IP or at least a lot of it. We can help with architecture. We can assign our front end design resources. We have a lot of expertise there and we get hired to do that quite often and so and then we can deliver literally the the full chip and underwrite it, underwrite the quality, underwrite the yields, failure analysis it, send FAEs out if it’s not working. I mean, the whole nine yards.

Right? And so it’s kinda two models. Right? One is roll your own and use use a use a partner to help you with some part of the the design that isn’t as critical and then find somebody else to do it or go the full turnkey approach. We don’t have a back end only business per se.

I mean, where we really add value is when you want to do a very complex, very large die size, complex packaging, all the different challenges you’re going to need in terms of signal integrity, power management, package design, cooling, you know, how to yield it, how to do best in class sort of test, how to get it to production, like, without any failures and no respins. And you kinda hear about this now, like these big chips. If you need a respin, I mean, it’s like six to nine months away. Night. At three nanometer or five nanometer because of the number of the the manufacturing cycle time.

I mean, we’ve been able to bring up virtually all of our five nanometer fleets so far with effectively a zero or first pass success on massive chips. So that’s a time to market advantage, and that track record has really helped us with our customers that are like, oh my god. You guys are actually able to execute, which was not something Marvell was a hallmark of historically, if you remember the past. Right? I mean, I I joined this company.

We were spinning ships eight, nine, 10 times. I’m not joking. I’m not joking. For, like, simple small die sizes. So we’ve really built a machine to go and execute these programs and do it where where it actually works.

And the final thing I’ll say is it’s really about risk. I mean, you can do anything on your own. How long is it gonna take, and is it gonna work? And, you know, I’d I’d encourage everybody to look back over time and how many times did something pop out of the out of the rumor mill supply chain over the last five years about somebody’s got some socket with some other and it just sort of where did they go? What happened to that one?

You know? Didn’t work. You know? So we continue to believe, and what we see in the market is that there is a place for that model. It’s certainly there’s gonna be revenue generated.

There’s no question. It’s a it’s a giant TAM. I mean, we sized this custom thing at, like, 40 something billion a year ago, and that’s only floated up, right, since since since we so so it’s a this is like a unprecedented TAM. And but I the way we see it still is that the vast majority of the volume that’s gonna ship in the future is still gonna be from companies that can provide the full total solution. And I think until such time and this market slows down or something, and you have just more time, then maybe you’ll you’ll try to do it a little cheaper on your own.

But it’s really just a cost issue. It’s not a but if you really want wanna wanna execute and use the latest nanometers, latest package, and and get to market, you’re way better off picking picking Marvell to go do that for One

Vivek Arya, Analyst, BofA Semiconductor team: other thing, Matt, you mentioned during the call was that, you know, some customers, given that they have these really giant CapEx, right, and a lot of projects, that they could choose multiple paths, right? So do you see that dual sourcing on the ASIC side become a trend? Because we have heard your other USP also talk about their number of projects has gone from three to seven. There is potentially more competition in the project, right, that they are in. So do you think this becomes a norm where these large hyperscalers just have multiple ASIC projects running and we just have to get used to it?

Yeah. I I think

Matt Murphy, CEO, Marvell: I think it’s still early to make a call on that or not. I I do think if you look at the industry perspective and you filter the signal from the noise on a lot of the information that’s out there, it seems like that would be the case. And I think it would be logical to think that that would would would be part of the market because to your point, like, what we I mean, I remember even when we bought Avera, like, five years ago. Right? We you know, a home run, like, ASIC project for any ASIC business, actually, even us or our big peer was like, you get, like, a hundred million bucks a year, you know, plus.

I mean, this thing was like, you’re ringing the bell. Right? It’s a gold mine.

Vivek Arya, Analyst, BofA Semiconductor team: Right.

Matt Murphy, CEO, Marvell: They just never quite and and now you’re talking about these programs that get to, like, a billion dollars a year or more. And so when you get to that scale and the criticality of these, it just it wouldn’t surprise me that, again, from an industry perspective, there is some bifurcation and there is some some, you know, multi path that occurs. But I’m not ready to make that call exactly. I mean, we’ll see how that all plays out but just given the scale, I would think that it probably opens up opportunities for multi party to do things and I and I don’t think that this is gonna end up and it’s really not and when we look forward, we’re not seeing this. It’s not gonna be a one trick pony type of business.

There’s not gonna be two sockets in the world over time that drive all the volume. And if you have one, you you’ve got it. And if you don’t, you’re zero. And I think that’s some of the discussion we’ll have at the AI event is we we see just a really strong breadth of opportunities across the stack. Some of them are bigger than others, but they also carry carry more risk.

Right. Right? I mean, if you whenever you chase the big, big, shiny object, usually, there’s a lot more risk with it. So I think I think that’s there’s there’s there’s some interesting trends we’re seeing, and we’ll talk about that more. But it certainly wouldn’t be out of the question that that ends up becoming somewhat of a trend just given the pure scale and the and the the revenue.

Vivek Arya, Analyst, BofA Semiconductor team: But does that impact, you know, your ability to capture, you know, revenue so you continue to grow even if there is a different player in that same company?

Matt Murphy, CEO, Marvell: No. And remember, we’re the up and comer, Right? I mean, it it yeah. Sometimes I appreciate some of the credit we’ve gotten, but we just started shipping high volume custom in this area, like, you know, last year. Like like, it’s sort of like this is all still in front of us, and I think there’s a there’s obviously, you know, a lot of pessimistic view that sort of our best days are behind us, but we we just got started.

You know, these are designs we won in the first generation. A few years ago, we’ve delivered them. We’ve won subsequent generations. Those are in front of us. So from from our standpoint, especially given our size and our scale, and you just think about a TAM that was 40 something billion a year ago, that’s gonna now be a lot higher.

And we were we were, like, you know, I think last year well, we overachieved it, but at one point at the AI Day last year, I think we said, like, 500,000,000 of custom revenues, like, last year, and then we we shot over it. I mean, that’s a very small percentage of the total TAM. And so if you think that there’s if you see that there’s a diversity of opportunities and the direction is heading that way, absolutely. There’s no these trends are are gonna happen the way they are, but it it it doesn’t affect our line of sight in terms of the revenue capture we can go get. Got it.

Vivek Arya, Analyst, BofA Semiconductor team: Yeah. And then I think at last year’s, the April 24 event, you had also mentioned a third customer, right, that could start to ramp. I think during this earnings call, you also mentioned that you now have these wins. So is that something that helps in ’26? Is that something that helps in ’27?

How do you kind of conceptually look at the ramp and contribution from that third customer?

Matt Murphy, CEO, Marvell: Yes. We I think from the beginning, you know, and again, you’re trying to call the ball fairly early on this, so we always try to so so in in in the case of last year, we talked about the fact that our customer, you know, wanted to go into production in ’26. And the way I signaled it even back then a year ago was just just kinda park it as, like, late twenty six, and we’ll we’ll see how it goes. And we’ll see. I mean, I think that’s still our hope is to is to do that and, you know, it’s certainly getting some revenue in ’26.

’20 ’7 always we said was probably the bigger year, and then it kind of grows from there. But as I said in the call, projects are tracking well, and we have no reason to believe that that can’t that can’t happen. And we’re all working hard together to make it happen as fast as possible.

Vivek Arya, Analyst, BofA Semiconductor team: Got it.

Matt Murphy, CEO, Marvell: But that all is our view on that is very consistent still from a year back. And now we also have a lot more track record in terms of the time that’s elapsed and the design and everything. So got it.

Vivek Arya, Analyst, BofA Semiconductor team: Makes sense. On the electro optic side, Matt, so size of clusters growing, right, need for connectivity growing. But at the same time, we have also been hearing about incremental competition as people, right, whether it’s the move towards CPO, right, whether it is some competitors coming up with DSPs at the 1.6 terabit generation. And Marvell has been such a dominant part of that electro optics market. So how do you see the competitive landscape shaping up in that industry?

Matt Murphy, CEO, Marvell: Yeah. I’d say a couple of things. Well, first, I mean, we’re in great shape. We’re in great shape from a competitive standpoint, never been stronger. I recall and I and I was following this from the outside looking in, and and you can go back in time too.

Take your time machine back. If you remember when the the PAM transition happened, and there was, like, how many companies were hanging around the hoop, right, that all had some PAM DSP revenue plan that was gonna go you know, all add them all up. They’re way over 100% of the market. And ultimately, the the team at Inphi, you know, just really executed well. It’s just a top notch team that now we’ve supercharged with the Marvell engineering teams as well.

So so the first wave of PAM, you know, did great. You know, we’ve continued that trend, 400 gig, 800 gig, one. 60. We’ve been the clear leader at OFC the last three years in terms of technology leadership, whether that’s demonstrations or announcements of new products and technologies. Most recently, now the transition to 400 gig.

You know, it’s really funny. Our, you know, people in our company, including some of our engineers, they do listen to the earnings call, right? So they got they picked up on the question about, hey, is Marvell SerDes durable and is there any problem with it? And I can’t tell how many irate emails I got. I mean, I they’re ready to unload.

I mean, they’re just like, you know, where is this coming from? You know? So so, yeah, our our technology base, optical electrical SerDes, and the leadership we’ve demonstrated is clearly going to keep us in that top position. Now, markets expanded dramatically. I mean, the the whole transition from NRZ to PAM, that kind of opened up a new TAM because all of sudden, you had DSPs in the mix and now all the ports have happened.

So, there has been increased competition and certainly, there’s people today that are still saying there’s going to be solutions at one. 60 just like 804. So, we have to deal with that but when you’re first and you have the incumbency and you’ve got the best products and technology, we’re confident in our ability to keep our share and keep growing. And we’re very excited about the coming years here. Of exciting programs are involved in.

Vivek Arya, Analyst, BofA Semiconductor team: Got it. Now this is a little bit of a nitpicky kind of short term question, but I get it, so I’m going to ask You know, people look at Marvell’s earnings revisions, right, they seem to be a little more modest than what we so year on year growth rates are obviously exceptionally But when we look at sort of these quarterly run rates, they seem to be a little more modest than what we see from some of the peers. How do you address that issue that Marvell’s business is strong yet predictable? I know predictable can be a good thing or Right. Not not a good thing.

But Yeah. How do you address this issue of kinda more modest earnings revisions through the year? Yeah. Yeah. It’s a it’s

Matt Murphy, CEO, Marvell: a it’s a great one. I think I guess I never thought I’d be punished for, you know, being consistent, but apparently, that’s the that’s that’s the that that’s the you know, that that that is what’s happened. But that’s how we historically have run the company. I mean, guys, I’ve been CEO for nine years. Right?

And and I’m open to change, okay? But but just if you look at kind of, this isn’t the last like three quarter thing. I mean, in in general, we’ve been very focused and over time, I think, have demonstrated that, you know, just consistently managing the business and trying to be very thoughtful about the expectations we set and doing what we say has kind of been the mantra. Certainly,

Vivek Arya, Analyst, BofA Semiconductor team: we’ve

Matt Murphy, CEO, Marvell: been dinged in cases where peers at at different times have had beaten raises. Right? And we sort of deliver in line, and then there’s a little expectation. We’re in a cycle now where where, you know, the stock is retreated. People are like, hey, why aren’t you beating and raising?

But there was a time when we were doing the same thing and and outperforming. And I remember during the pandemic getting a similar type of criticism at times, which is, hey. Everybody’s, like, blowing their numbers out. Hey. There’s mobile phone companies blowing their numbers out, or there’s these auto things blowing their numbers out, and then analog guys blowing their numbers out.

Well, look what happened. Look what happened. I mean, if you look at go go track it. Go back to pre pandemic and draw a revenue line for the analog bucket. Where’s what’s it done?

Fully round tripped. Some companies have outperformed, some haven’t, but look at all the mobile phone stuff. Round tripped. Look at the x 86 package. Right?

One did well, one didn’t. Round tripped. Now the data center focused companies and the ones that executed have just outperformed. Like, I gave you our numbers. Right?

We’ve we’ve doubled in the last four years. I don’t think you know, so so I think along the way, we’ll find quarters where people are are disappointed because we didn’t have the same. But but I I I’m not being defensive. I just think that that’s how we’ve that’s how we run it. And if we get a bluebird, we get a bluebird.

But, certainly, I think I think in the market we’re in right now, beating raises are big big raises are sort of appreciated. But long term, I think consistency is what matters. And I try to do that for you guys in terms of being predictable. And also even in long term, know, new markets we get into. Hey, here’s automotive.

Here’s what we think it can do. Here’s custom silicon. Here’s what we it can do. Here’s five gs. Here’s what we think it can do and we’ve had, I think, a very good track record of kind of sizing opportunities, going after em, and meeting or exceeding them all the time and so, we’ll continue to do that but but I I got the feedback.

You’ve been telling me for a long time, you know, bigger beats.

Vivek Arya, Analyst, BofA Semiconductor team: That would be nice. In terms of, you know, the recent announcement with NVIDIA on this NVLink fusion, Can you give us a little more background what, you know, drove that? What is driving that partnership? And more importantly, when does it start to actually result in something tangible for marketing?

Matt Murphy, CEO, Marvell: Yeah. Actually, this discussion is not a new one with them. You know, as a as a leading provider of custom silicon, I mean, I I probably had a discussion with them, I don’t know, a year or two ago. I mean, on, hey. Is there a way to kinda co market our IP together?

Right? Because when you look at it, all the different pieces of custom compute ultimately are complementary, and they’re in the same system and network as as NVIDIA. And so is there some advantage, you know, to actually having interoperability through the scale up by including NVLink with our chips as an example? So the manifestation of that was the announcement that they did of which we’re one of the partners, But it’s not like a it’s not a new concept, but it’s been formalized now, which is good because I think you needed something more concrete. And we have a lot of customer interest so far.

It’s very early. It’s because because this sort of was just released broadly at the at at at Computex. But we’re we just view it as another addition to our custom platform. It’s an offering we have. We’re going to do the same thing with other industry standards.

Like UA Link. We’re on that consortium. We have partners over there. We’re doing stuff there. So it’s really just about having the broadest kind of most open platform to allow our customers that choice.

And if they wanna go down that path, we’ll we’ll fully support it. And we have a long standing, very good working relationship with NVIDIA across a number of different vectors. And so I think that ability to go partner and really deliver, I’m very confident we would be the best in class partner to go do that for sure.

Vivek Arya, Analyst, BofA Semiconductor team: Got it. One other TAM expansion, Matt, yesterday, you know, one of your peers on the active electrical cable side, right, had very strong results and When does AEC start to become tangible for Marvell?

Matt Murphy, CEO, Marvell: Yeah. It’s in the yeah. So so I I think they they did a great job, and I think it’s been further validation of that category, which we’ve been investing in. And we are participating now. You revenue in the system today, and there’s more opportunities, especially as that business is now is transitioning to a PAM based approach.

Remember the initial wins in that area and the initial sort of instantiation of AEC a kind of a full solution, which was NRZ plus kind of in with one vendor in a cable. So now I think there’s just going to be there’s just demand from the market, right, as more and more of these links get accelerated optically and electrically that you’re gonna want diversity of choice. And and so we’ve had we have a different approach. You know, we’ve partnered with all the key cable manufacturers to kind of broaden that ecosystem, and then we’re bringing our best in class PAM technology to that field. So long story short, it’s in the revenue today, and we expect more meaningful contributions throughout the year and next year.

But I view the the performance of the the Credo team as mean, they did a great job, and they proved that this category is real. And I think that more broadly, kind of the demand for data center connectivity across the board is is strong, and and that trend is gonna continue. And we’re gonna be continue to be with our mission being really the one stop shop, broadest, deepest supplier. So customers have choice on what they want to do. We’re not a

Vivek Arya, Analyst, BofA Semiconductor team: point solution where we have the breadth and scale to go tackle the most complex tasks. Got it. Then one thing, you know, you mentioned last year at the AI event, you had given, I think, a total of like mid-70s total market. And then in that, I think 40 plus was on the custom compute side. Since that time, we have only seen the AI market size grow much, much bigger.

What do you think is that ASIC versus GPU mix in that? Guess, since you guys are smaller, it doesn’t even matter to some extent because you have that headroom for growth. But do you think that ASIC to GPU mix has evolved since you first thought about it?

Matt Murphy, CEO, Marvell: You wanna take this one? You’re grabbing the investor day

Willem Minkes, CFO, Marvell: by Yeah, think you’re gonna have to wait for June 7.

Vivek Arya, Analyst, BofA Semiconductor team: For no preview.

Willem Minkes, CFO, Marvell: Yeah, I think this is one of the key messaging, you know, I think, you know, just at a higher level, two things, right? One is you clearly see a proliferation beyond the top four, right? And so we’ll give you some flavor of that. But also we’ve been saying very consistently that custom is not just on the compute, but it’s the entire system. And so we’ll unpack that a little bit more.

Yeah, but I think we have some really exciting things to do.

Vivek Arya, Analyst, BofA Semiconductor team: And we’ll update the TAMs

Matt Murphy, CEO, Marvell: to your point, because yeah, we did get criticized for low balling, I guess, last year and we’re calling out like these, you know, dollars $200,000,000,000 data center semi TAMs and $70,000,000,000 this and $40,000,000,000 It was just like, hey, you guys are sandbagging. It’s like, okay, you know, no problem. But but that’s fine. I mean, I think it it’s given us some headroom to to to to watch the market float up over the last year. And so I think there’s a there’s a there’s a strong message there about the the opportunity only getting bigger.

And then to Willem’s point, maybe a lot a lot more diversity and and and optionality for growth from a number of different vectors. Got it. But, yeah, we’ll update those numbers for you.

Vivek Arya, Analyst, BofA Semiconductor team: Excellent. On that optimistic note, thank you so much. Yeah. Thanks for the very appreciated.

Matt Murphy, CEO, Marvell: Thanks, everybody, everyone. Appreciate your support. Thanks, man. Appreciate it. This is terrific.

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