(Reuters) -Marvell Technology forecast second-quarter revenue above Wall Street estimates on Thursday, betting on robust demand for its custom chips powering artificial intelligence workloads in data centers.
Demand for custom AI chips continues to fuel growth, while high-performance networking chips and electro-optics have also seen robust order momentum. These advancements help hyperscalers manage the exponential increase in data traffic generated by AI applications.
However, the consumer end market remained weak for the company, with revenue falling 29% sequentially to $63.1 million due to broader economic uncertainty and seasonality in gaming demand. The industrial segment also struggled, reporting a 12% sequential decline in revenue in the first quarter.
Shares of the company fell about 2% in extended trading.
Revenue from Marvell’s data center segment, which accounts for more than 70% of the company’s total revenue, stood at $1.44 billion in the first quarter.
The company expects second-quarter revenue to be $2 billion, plus or minus 5% compared with analysts’ average estimate of $1.98 billion, according to data compiled by LSEG.
Earlier this month, Marvell said it was postponing its previously scheduled investor day conference due to a “dynamic macroeconomic environment”, and also narrowed its forecast range for the first quarter of fiscal 2026.
It reported revenue of $1.9 billion for the quarter ended May 3, compared to analysts’ average estimate of $1.88 billion.
(Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)
