A：The highlights of Marvell's second fiscal quarter 27 earnings call include the management transitions, with Willem Mank stepping down as CFO and Dan Dern being welcomed as the new CFO. Additionally, Ashish Saran's retirement from the company in April 2027 was announced.

A：For the second quarter of fiscal 27, Marvell reported record revenue of $2.739 billion, with a 13% sequential and 37% year-over-year growth. Non-GAAP earnings per share were 94 cents, exceeding the midpoint of guidance. Marvell increased its sequential revenue growth expectation for the third and fourth quarters to double-digit percentage growth and expects revenue to grow in the second half of the fiscal year. The revenue outlook for the third quarter is a total company revenue of $3.15 billion at the midpoint, an increase from the prior outlook of approximately $1.5 billion just one quarter ago.

A：The data center business is a major contributor to Marvell's growth, with revenue growth of approximately script this fiscal year. This growth is driven by factors such as the demand for AI and the continued growth across all of Marvell's key data center businesses. Marvell now expects fiscal 2028 revenue to be approximately $18 billion, an increase of $1.5 billion from the outlook provided just one quarter ago. The growth rate is also accelerating, with an expected fiscal 2028 revenue growth of approximately 50% year-over-year, compared with 45% in the prior outlook.

A：Marvell expects aggregate demand to accelerate in fiscal 2028, leading to a significant increase in revenue to more than percent year in 2028. This growth is driven by strong revenue growth across all key data center businesses, including custom more than doubling. Marvell now projects a fiscal 2028 revenue growth of approximately 50% year-over-year, compared with the prior outlook of approximately 45%.

A：AI demand is having a broad-based positive impact across Marvell's various data center businesses, including interconnect, switching, and custom connectivity. This demand is driven by the rising need for AI performance and is a critical enabler for scale-out applications. Marvell's market leading franchises in optical DPs and broadband analog components are experiencing significant demand, with robust demand for 800 gig and a rapidly ramping 1.66 T business. The growth is anticipated to continue as hyperscalers build larger AI clusters that span multiple data centers.

A：Marvell's strategy for scale-up networking and AI infrastructure is contributing to the company's growth by creating a massive new TAM (total addressable market). Initially, customers are deploying copper interconnect for scale-up networking, but as cluster sizes grow, the limitations of copper are driving the demand for optics and Ethernet switches. Marvell is investing in next-generation scale-up optical interconnect and switching technologies to meet this demand. The adoption of scale-up networking and AI infrastructure is expected to create a significant growth opportunity for Marvell, supported by a strong demand for its Tia and drivers.

A：Marvell's scale-up switches, developed using internally created Ual and Es UN technology and partnered with Nvidia, are uniquely positioned to score all Ly purpose-built scale-up protocols. They leverage decades of experience in developing large critical-sized switch silicon, combined with in-house high-performance C technology. The close coupling of optics and switching provides another important differentiator, allowing Marvell to deliver highly optimized solutions that offer customers exceptional performance, reliability, and time-to-market acceleration. Marvell is in deep discussions with Tier Ii customers for multiple engagements across its scale-up switch portfolio, each representing a multi-billion dollar lifetime revenue opportunity.

A：The custom business within the data center end market is expected to more than double year over year in fiscal Q4 and significantly accelerate in fiscal Q5. This growth is anticipated to be driven by both xpu and xpu attached products, with ongoing robust design activity with hyperscalers. A recent example of this momentum includes an expanded commercial agreement and a warrant with a key hyperscaler, reflecting the scale and long-term potential of the relationship. The agreement also covers a broad range of custom silicon programs, including those attached to the TPU ecosystem like AI accelerators and storage control. These products, built on Marvell IP, are designed to improve performance and efficiency of AI data centers. Revenue from these programs is already reflected in the overall customer revenue target provided by Marvell. Looking ahead, the custom business is expected to deliver strong revenue growth due to ongoing robust design activity with hyperscalers.

A：For the third fiscal quarter, revenue is expected to decline in the low to mid-teens percentage range both sequentially and year over year. However, a solid sequential recovery is expected in the fourth quarter. The near-term momentum across the business remains strong, as evidenced by significant increases to the outlook compared to the expectations provided just one quarter ago. The revenue outlook for fiscal Q4 has been increased by approximately $500 million for fiscal Q4 and by approximately $1.5 billion for fiscal 2029 compared to the previous outlook. The数据中心业务 growth is continuing to accelerate and broaden, with the forecast for data center revenue growth in fiscal Q4 increased from an expectation of 40% to approximately 60%, and there is potential for further acceleration in fiscal 2029.

A：For the second quarter of fiscal 2027, revenue was down 13% sequentially but up 37% year over year, with data center being the largest end market contributing 79% of total revenue and growing 46% year over year. GAAP and non-GAAP gross margins were 53.1% and 58.9%, respectively. The non-GAAP operating margin expanded 180 basis points year over year and 160 basis points sequentially. GAAP and non-GAAP earnings per diluted share were 33 cents and 94 cents, respectively. Marvell's balance sheet and cash flow from operations remained strong, with inventory at the end of the second quarter being just slightly higher than the prior quarter. Marvell's capital program continued with the purchase of 200 million of its common stock. Marvell's guidance for the third quarter of fiscal 2027 forecasts revenue of 3.15 billion plus or -5%, with GAAP gross margin between 52.9% and 53.9%, and non GAAP gross margin between 57.5% and 58.5%. The sequential acceleration of the custom business is the key driver for the revenue forecast in the third quarter.

A：The projected non-GAAP tax rate for fiscal 2027 is 11%, and it is expected to rise to approximately 13% in fiscal 2028.

A：The projected range for GAAP earnings per diluted share is 48 cents to 58 cents, while the projected non-GAAP earnings per diluted share range is $1.50 to $1.15.

A：Marvell is projected to make approximately $1 billion of capacity prepayments to suppliers in fiscal 2027, consistent with the guidance provided last quarter. These prepayments will be applied against future material purchases and funded through the company's strong balance sheet and robust operating cash flow.

A：The company views the technology portfolio as exceptionally strong, customer relationships as deep, and long-term growth potential as substantial. The company's focus is on executing with discipline to scale the company and ensure that growth translates into expanding margins, strong cash flow, and compelling returns for stockholders.

A：The Google commercial agreement impacts revenue projections by driving revenue growth. The agreement includes a significant commitment, and revenue from this agreement is expected to contribute more significantly in the upcoming fiscal year and beyond. For the next year, the company expects custom revenue to more than double, although an exact figure has not been provided. In the following fiscal year (fiscal 29), the impact of the Google commercial agreement and related programs is anticipated to be substantial, contributing to the company's revenue growth.

A：The company expects a significant revenue opportunity with their custom programs, which will be detailed in their upcoming investor day presentation. The guidance includes a thorough review of revenue expectations through fiscal 29 and extending into the end of the decade.

A：The company is very encouraged by the progress on the new double plus program, which is part of the large XP program. They have been making quarterly progress on design execution and are in a conservative and practical judgment phase. The most meaningful part of the next year's increase is expected to come from scale-up optics and other areas, with the double plus being a substantial part. The company has secured additional design wins in the area and is excited about the project's prospects.

A：The company's architectural view on CXL has evolved positively, with the technology being deployed at multiple hyperscalers with varying architectures. The investment made in CXL is proving ideal for memory expansion and inferencing, leading to modifications and adjustments in customer plans to utilize more of this technology. The company has also secured additional design wins in this area and looks forward to outlining them at the investor day presentation.

A：The scale up optics opportunity is turning out to be one of the most exciting areas for the company. The previously outlined investment in this area is now showing a significant upward bias, with a comprehensive memory expansion section expected in the investor day presentation. The company anticipates that scale up optics will be a substantial contributor to the revenue growth, with a significant portion of the forecasted increase for next year attributed to this area. The company's approach to scale up optics is not limited to a single solution but includes various design wins and participation through partners, including their own light engine solution. The company is also working on their switching roadmap to couple optical solutions with their switches, allowing for seamless integration with customers' xpu/GPU solutions.

A：Marvell is uniquely positioned due to its end-to-end connectivity solutions, diverse technology portfolio including packaging modulator technologies and silicon photonics, and a decade of experience in these areas, making it a massive opportunity for the company.

A：Having a clear roadmap for executing on the full end-to-end solution is significant as it enables Marvell to demonstrate credibility and win long-term customer trust. The roadmap is essential for convincing customers that Marvell can deliver on both copper and optical solutions, fulfilling their need for a comprehensive and trustworthy end-to-end portfolio.

A：Investors should understand that most of the financial impact from the Boot deal is already reflected in the next year's projections, with the biggest impact expected beyond that. Marvell has shown ranges of outcomes but suggests investors should assume the numbers will be significantly larger than what has been customary. The financial model for custom products indicates a significant increase in financial potential, with the opportunity to grow much larger than previously modeled.

A：The strategic partnership with a major player in the AI market signifies significant validation of Marvell's position in the market. The partnership demonstrates Marvell's honor and recognition as a key participant in the ecosystem, and the company looks forward to revealing more details at its investor day.

A：The current trends in the market related to AI inference accelerators include companies looking at ways to maximize performance and cost-efficiency relative to the tokens generated, as the shift from training to inference is happening rapidly and companies are now monetizing these capabilities.

A：Marvell is contributing to the market trends in AI inference accelerators by providing solutions across various fronts, including networking, storage, and memory in compute, which are integral to the infrastructure supporting these accelerators.

A：The anticipated growth rates for this year and the next fiscal year in the connectivity segment are broadly based with a raised expectation to $500 million for this year and $1 billion for the next year.

A：Specific areas within connectivity driving the growth include scale up optics, transceiver market for scale out, and optical Dsp units going into data centers, in addition to switching which is biasing higher this year and next.

A：The fastest growing segment within the data center is the custom segment, which is impacting margins. Custom is ramping meaningfully in the second half and while the business is performing strongly across almost all product lines, the change in mix towards custom is causing a step up in gross margins in Q4.

A：Gross margins in the current quarter (Q4) are expected to be in the same target range as Q3, with a broad-based performance across the company. For the next fiscal year (FY 28), it is anticipated that gross margins will be in a similar range to how they are exiting this year, with all parts of the business seeing an increase. The preliminary view is that gross margins next year will be in a similar range to the back half of this year.