A：Marvell's data center business is expected to grow significantly, with the interconnect business showing more than Edt year-over-year growth, well above the prior expectation of script growth. The communications and other end markets are expected to grow approximately 10% in fiscal 2027. AI is driving a massive expansion in scale-up networks, increasing the demand for high-radix low latency switches and high bandwidth optical interconnects. Additionally, the development of AI is anticipated to increase the number of CPUs deployed in infrastructure, requiring more bandwidth and CPU-centric front-end networks, which will provide a tailwind for Marvell's interconnect, switching, and XPU businesses.

A：Marvell's first quarter fiscal 2027 delivered record revenue of $2.418 billion, which represented 9% sequential growth and 28% year-over-year growth.

A：Marvell expects its interconnect business to continue to outpace cloud CapEx growth, reflecting strong Ed Edt demand from scale-out networking and more meaningful contributions from scale-up and scale across networking. The custom business is expected to more than double year-over-year in fiscal 2028, and the Ethernet switching business is anticipated to continue ramping. Consequently, data center revenue in fiscal 2028 is projected to grow approximately 55% year-over-year.

A：The core pillars of the partnership between Marvell and Nvidia include an optics partnership to collaborate on silicon photonics technology, which is a key enabler of scale-up networking; nvlink fusion integration to allow Marvell to build custom chips and networking semiconductors that can interface seamlessly with Nvidia infrastructure; and AI runway, where Marvell will enhance its Octane base station processors to work directly with Nvidia GPUs, integrating AI with wireless infrastructure on a single software-defined computing platform.

A：Within the data center market, Marvell's recent revenue growth is attributed to sequential and year-over-year growth across multiple product lines, including optical interconnect, custom silicon, and switching. The interconnect and switching products are driving strong revenue growth as the importance of networking becomes more pronounced with each new generation of AI infrastructure. The emergence of more complex AI models and the need for high-speed data transmission across AI clusters are driving the increased demand for scale-out networking products and will also benefit Marvell's XPU business.

A：AI is playing a significant role in driving demand for Marvell's products by substantially increasing the volume of data traffic that must be transmitted and switched with very low latency across longer reaches, as well as the amount of memory required. The development of AI models is expected to result in a significant increase in the number of CPUs deployed in infrastructure, requiring more bandwidth and CPU-centric front-end networks. Consequently, the AI developments are anticipated to provide a tailwind for Marvell's interconnect, switching, and XPU franchises.

A：Marvell has acquired Polariton, a developer of high-speed low-power plasmonic space photonics devices. This acquisition is expected to extend Marvell's technology platform to support data center connectivity with bandwidths exceeding Ed terahertz, significantly higher than current silicon photonics and thin film lithium niobate-based solutions. Marvell plans to incorporate this breakthrough technology into its DCI and coherent light roadmaps, extending its technology to 3.2 T and beyond.

A：The transition in the DCI market is being driven by the emergence of scale across networks, particularly as hyperscalers build larger AI clusters that span multiple data centers due to power and space constraints.

A：Marvell has pioneered the pluggable DCI market, shipping DCI solutions to major US hyperscalers and is well positioned to lead the transition to higher speeds and integrated solutions, including security, with its new 2 nm coherent DSP.

A：The projected growth of the pluggable DCI Total Addressable Market (TAM) is significant, with rapidly increasing speeds and rising future complexity, including integrated max tech security.

A：Marvell's 1.6 T z.r. and z.r. plus DCI modules, powered by their new 2 nm coherent DSP, are well positioned to lead the transition to higher connectivity and are expected to begin sampling this year.

A：The acquisition of Celestial AI has advanced Marvell's Pcle and CXL switch solutions and added photonic fabric technology, including Eam modulators and low power analog surges, which have been selected by a tier 1 hyperscaler for its next generation of xpu scale up networks.

A：Marvell expects the scale up optics business to ramp significantly, with revenue forecasted to more than double the prior outlook of approximately $2 billion, which was based solely on the acquisition of Celestial AI.

A：The data center switching business is performing well, with continued demand for Ed Edt and a strong ramp of next generation Ed Edt switches. The business is tracking to more than $1 billion in annualized revenue in fiscal 2028.

A：Marvell is well positioned in the scale up switching market, with a transition away from Pcle switches towards purpose-built large radix, high bandwidth switches, supported by internally developed Ual and Essen switches and partnerships like the one with Nvidia around nvlink Fusion.

A：Marvell's growth opportunities in the AEC market include the Golden cable program, with design wins with major hyperscalers and strong traction for Re timer products, expected to result in combined revenue more than doubling year over year.

A：The custom business is performing strongly, with revenue expected to grow more than 20% year over year in fiscal 2027 and over 100% in fiscal 2028. The performance is driven by several new programs ramping and engagements with new and existing customers.

A：The outlook for the communications and other end market in the second quarter is for revenue to decline in the mid single-digit range sequentially and grow in the high single-digit range year over year, following inventory corrections and expected to reflect underlying trends in other Marvell businesses.

A：Marvell has updated its forecast, increasing the fiscal 2027 revenue outlook by more than $500 million and the fiscal 2028 outlook by approximately $1.5 billion compared to projections from the previous quarter, driven by strong data center revenue growth expectations.

A：The company forecasts revenue to be in the range of $2.7 billion plus or -5% and expects GAAP gross margin to be between 52.1% and 53.1%.

A：The company projects GAAP operating expenses to be approximately $960 million and non GAAP operating expenses to be approximately $600 million.

A：Non GAAP operating expenses for fiscal 27 are expected to grow year over year approximately in the mid to high teens percentage.

A：The company expects GAAP earnings per share in the range of 32 cents to 42 cents and non GAAP earnings per share in the range of 88 cents to 98 cents.

A：The company expects non GAAP operating expenses related to the custom business to grow year over year in the mid to high teens. The custom business growth is projected to reach an end-of-year operating margin model of 38% to 40% based on secured diamonds and customer demand.

A：The company expects to make approximately $1 billion in prepayments during this fiscal year, with the first payment starting in the second quarter. These prepayments will be applied against future material purchases and will be funded through the company's strong balance sheet and robust operating cash flow generation.

A：The company is making progress with its XPU program, which includes existing programs, new ramps, and numerous XPU offload programs. They have a clear line of sight to meet their targets and continue to update investors on progress. The second question program remains on track, and the company is seeing indications of greater demand than initially anticipated.

A：Yes, Marvell is leveraging its historical focus on memory technology, including its best-in-class SRAM design capability. This legacy investment dates back to the Avera acquisition and has been extended into AI products as inferencing becomes more prevalent. It is a key part of their IP portfolio and winning designs in xPU offload.

A：The combined celestial and Marvell team allows the company to provide full end-to-end solutions from xpu to switch, incorporating any type of interface and optimizing with optical or copper connections, which is expected to drive growth in the next year.

A：The integration of xpu with the same photonic elements as the switch side is crucial for first-generation solutions and demonstrates the company's capability to walk into customers' projects with a comprehensive, integrated solution.

A：The company's proven technology, with 15 billion hours of device data, 224 gigs in production, and multiple generations of silicon photonics and switches with high yields, is highly relevant in the semiconductor industry, particularly for its complex nature.

A：The company is focusing on helping customers scale up their networks, representing a significant trend in the industry.

A：The company is approaching the market with a blank sheet, focusing on customer needs with real engineering and proven technology. They are investing in multiple standards and technologies to win and pivot at the right time based on customer and market demands.

A：Beyond the established switching market, potential growth opportunities include the greenfield market of scale up networking, with a focus on Ethernet design and the broader set of capabilities required to succeed there. This market is less established and provides a new segment for Marvell's technology.

A：The company views the growth potential of the custom program as significant, with the ability to more than double the business from this year to next year. Growth is expected across all custom programs, including xpu attachment, and is driven by existing customer expansion, the attic, and new tier 1 programs.