A：The recent acquisitions are expected to significantly enhance Marvell's position in the AI scale-up networking market. Although they are not expected to contribute meaningfully to financial results until fiscal 2027, they are anticipated to add to Marvell's overall revenue outlook for the fiscal year, with a particular impact seen in the data center business.

A：Marvell's fourth quarter and fiscal year 2026 financial highlights include record revenue of $2.219 billion, representing sequential growth and exceeding the midpoint of guidance. Non GAAP earnings per share of 80 cents also exceeded the midpoint of guidance. For the full fiscal year, revenue grew year over year to approximately $8.2 billion, and data center revenue surpassed $6 billion, growing 46% year over year.

A：The updated revenue forecast for fiscal year 2027 is approximately $10 billion, up from a previous estimate of $9.5 billion. Growth is being driven by a continued increase in CapEx forecasts, robust demand across the entire data center, bookings acceleration, and a strong ramp-up in customers. The data center revenue is expected to grow by 40% year over year, with all key product lines performing better than prior outlooks.

A：For fiscal year 2028, Marvell expects a moderation in the rate of CapEx growth but continued robust data center revenue growth. The company anticipates interconnect business to significantly outperform cloud CapEx growth, custom business to at least double year over year, and Ethernet switching business to ramp meaningfully. With the addition of Celestial AI and Ex-con, aggregate revenue from these entities is expected to be around $250 million. Consequently, data center revenue in fiscal 2028 is expected to grow close to 50% year over year.

A：Key trends across Marvell's established data center businesses include robust demand for interconnect solutions, with sequential growth across all key product lines such as optical interconnects, custom silicon switching, and storage. In newer growth initiatives, Marvell is focusing on the integration of Celestial AI's photonic fabric (PF) technology, which is expected to enable large scale commercial deployment of CPO for scale-up conductivity starting next year. The company is also seeing strong interest in its AEC and re timer solutions, with design wins secured with major hyperscalers and other customers. Marvell's engineering and operations teams are fully engaged in bringing the benefits of this technology to market.

A：The projected growth for data center switch revenue in fiscal script is expected to surpass $700 million. This growth is driven by the 51.2 T platform and the upcoming 100 T platform, which is scheduled to begin sampling in the first half of the fiscal year. These platforms are designed with industry-leading power efficiency and lower latency attributes, critical for AI applications in scale-up switching.

A：The acquisition of Excon is expected to significantly bolster Marvell's capabilities in addressing rapidly emerging UAL and Ethernet-based opportunities. Excon's Pcle Gen 6 and CXL 3.1 solution, along with their expertise in high-speed interfaces, will enhance Marvell's ability to support customers building next-generation AI platforms. Marvell expects strong growth in both the Pcle and CXL switch markets over the next several years, drawing on Excon's existing customer engagement.

A：The impact of the acquisition on Marvell's custom business is significant, as it has scaled from zero revenue to $1.5 billion in fiscal 2026. The custom business is a compelling growth driver for Marvell, having doubled customer revenue year over year in fiscal 2027 and seeing revenue growth of more than 20% year over year. The growth expectations for the custom business include continued growth from existing programs, new xpu attached programs reaching high volume, and a new Tier 1x program ramping into high volume production.

A：CXL demand is accelerating, partly due to tight memory supply. Marvell's custom CXL expanders allow customers to reuse prior generation DRAM with new xpu GPUs and CPUs while supporting near-memory compute operations. A white paper from a leading hyperscaler highlighted near-memory processing as a key opportunity to improve model performance, with Marvell's structure processor being cited as an example of a CXL enabled solution that improves programmability and simplifies system integration.

A：Marvell's revenue growth expectations for fiscal 2027 are robust, with a forecast for year-over-year growth to accelerate throughout the fiscal year, culminating in a projected fourth-quarter revenue of over $3 billion. Factors driving this growth include continued demand from AI and data center markets, the communications market, and bookings across the entire data center portfolio indicating strong customer demand.

A：In fiscal 2026, Marvell generated $2.219 billion in revenue, a year-over-year increase of 26%. GAAP gross margin was 51%, operating margin was 16.1%, and earnings per diluted share was $3.70. On a non-GAAP basis, gross margin was 59.5%, operating margin was 35.3%, earnings per diluted share was $2.84, and there was a significant increase in capital returns to stockholders, totaling $2.245 billion through share repurchases and dividends. Marvell actively engaged in strategic acquisitions and returned capital to shareholders while continuing to execute their capital return program.

A：For the first quarter of fiscal 2027, Marvell is forecasting revenue to be in the range of $2.4 billion, plus or minus 5%. The projected GAAP gross margin is between 51.4% and 52.4%, and the non-GAAP gross margin is between 58.25% and 59.25%. GAAP operating expenses are expected to be approximately $872 million, and non-GAAP operating expenses are anticipated to be approximately $575 million. GAAP other income and expense, including interest on debt, are estimated to be an expense of approximately $51 million, and non-GAAP other income and expense are expected to be an expense of approximately $48 million. The non-GAAP tax rate is projected to be 11%, with basic weighted average shares outstanding of 876 million and diluted weighted average shares outstanding of 883 million. GAAP earnings per diluted share are expected to be in the range of 26 cents to 36 cents, and non-GAAP earnings per diluted share are expected to be in the range of 74 cents to 84 cents.

A：The company expects non GAAP Opex to remain flat in the second quarter and then grow in the low to mid single digits on a percentage basis in each of the third and fourth quarters.

A：The company has a strong position with the top four US hyperscalers and the next level, each with a different revenue mix concentration.

A：Custom business, while garnering attention, is a part of the revenue equation but not the entirety. Over time, with 20 plus design wins in production or in the process of being produced across multiple companies, the diversification is expected to improve further.

A：The custom business is contributing to a stronger second half due to program transition and is expected to grow meaningfully into fiscal 28 and 29. The exit run rate for custom is north of $2 billion, indicating strong growth and a positive outlook.

A：The electro-optics business is performing well, showing a growth pattern more like accelerated CapEx growth rather than just CapEx. It is growing at over 50% this year, a momentum that is expected to continue into fiscal 28 and beyond, supported by new product generations and programs.

A：The company feels very confident about the custom business trajectory. For fiscal year 2026 (CY26), the growth is expected to be around 30%, and the confidence level on the timing and growth of the second major custom customer is high.

A：The expected growth for the current fiscal year is north of 20%, and next year's growth is expected to be a little bigger than initially thought.

A：Confidence in the growth projections stems from a history of successfully building large-scale custom programs, having executed similar ramps before, understanding the product's key milestones through NPI, detailed discussions and alignment around the manufacturing plan, and having lined up production for the next fiscal year.

A：Recent progress has led to an upward revision in financial expectations for next year, influenced by stronger bookings and detailed supply planning conversations with customers, resulting in a more concrete view of the business's future.

A：The interconnect business has benefitted from having very firm requirements and a better understanding of the business profile, which was previously conservative. There has been an upward revision in financial forecasts due to this improved understanding, and the company is now seeing the forecast increase, which ripples into next year's projections.

A：The data center market share target set back in April for calendar 28 has been validated by the company's progress and strong bookings and backlog, showing that they are on track to meet those targets.

A：The initial base for AEC and RTR growth was around the 200 million range, and based on current observations, the potential future contribution could be higher, with further growth expected as the market continues to expand.

A：The company is encouraged by the traction on their products, especially in product leadership, and is investing in AEC and RTR due to their strategic importance and potential for growth. They plan to be an end-to-end provider for their customers, offering a range of solutions from electrical to optical to silicon photonics, which aligns with customer demand for an interconnect partner that can provide a one-stop shop for their needs.

A：The company feels very good about its position and the sustainability of that, due to deep engagements with customers and the multi-generational nature of the technology pace. They expect to hit the previously talked-about revenue targets and plan to grow beyond that in the coming years.

A：The xPU attach market is projected to reach about 15 billion in calendar year 2028 with a total market share goal of about 20%. The company is currently in the range of a couple hundred million, expecting to double over the next year and potentially reach a billion-dollar type business by the following year.

A：The company has been saying that 800 will be stronger for a longer period. While they had significant shipments of 1.6 T at the end of the last year and expect a ramp in these shipments, 800 will still be the majority. However, they are unable to provide an exact breakout at this moment due to the dynamic nature of the bookings and demand environment.

A：The company faces challenges in the supply chain due to a tight supply environment for AI, advanced wafer fabrication, and large body substrate since the launch of ChatGPT. Despite this, they have managed to grow the company north of 40% in total revenue and are confident they have secured the necessary supply for future growth with the help of their suppliers.

A：The company's guidance suggests a revenue of 15 billion and earnings of 5 dollars. The moving pieces, like gross margin mix and investments, should be factored into an income statement to see the impact on the bottom line. The company targets an operating model that could lead to a number above 5 dollars, indicating a positive but not guaranteed outcome.

A：The company views the deployment of CPO scale out as relatively limited compared to plugins and transceivers. While not part of the current plan, the company has done pocas and worked on integrations with the Celestial technology and Innovia products. They are prepared to integrate and will be ready to react to the market needs for scale up, with a focus on the first shipments of scale up switching that will be copper-based. The company sees significant interest in CPO for scale up and plans to start shipping next year, with more deployments in the following years, including copper-based solutions.