Marvell Technology, Inc.

Q4 2026 Earnings Call — March 5, 2026

Analyst Ross Seymour (Deutsche Bank): Hi guys, thanks for asking a question. Matt, thanks for all the updates on the out year, well, fiscal year, both this and next. Beyond the magnitudes of the revenue growth, can you just talk about the profile of it? Is the customer base broadening? People are always worried, especially in your custom business, about the concentration of it. So I just wanted to get a little bit more color on the shape of the demand from a customer perspective.

Executive Matt (Title): Yeah, thanks, Ross. Well, first of all, we're deeply engaged across the entire ecosystem. Extremely strong position with the top four US hyperscalers and then the next level. And each of them, we have a different concentration and revenue mix. But just to be super clear, if you look at this year and you look at us driving the company to 11 billion and then you unpack things like custom, it's not that big a percentage of the total. So that's not what's driving our concentration. I mean, by design, because the top four U.S. hyperscalers are spending the bulk of the capex, that's where the dollars are going to go. But we're quite diversified across each of them. And some of them we sell a different mix, obviously, of product, too. But in the case of all four, within our portfolio, which I just went through the laundry list of all the different types of products that we provide, we're highly diversified within each of these customers. So, yes, custom is something that gets a lot of attention, but if you just look at the numbers I gave you and the context I set, it's a piece of the equation but not all of it.

And then over time, even on the custom business, as you look out through fiscal 28 and fiscal 29, remember we've got 20-plus design wins or products now, sockets that are either in production or going into production that's going to layer in across all those companies as well. So the diversification is only going to get better over time, but we're very unique in sort of the breadth, I think, of the products that we offer and the product lines we have to really serve end-to-end the needs of all of our key hyperscalers. And the last two M&As we just did really round that out nicely in terms of adding PCIE, beefing up the UAL, and then also adding key silicon photonics capabilities. Thank you.

Analyst Harlan Soar (JP Morgan): Yeah, good afternoon, guys, and congratulations on the strong results in execution. Matt, you know, on your custom XPU and XPU attached sub-segment, you know, OpenAI recently inked a partnership with your lead XPU customer to consume, I think, something like two gigawatts worth of your lead customer's next-gen and next-next-gen XPU. So it feels like the overall demand for AI compute continues to accelerate. Right on top of that, like you said, you're ramping 15 to 20 XPU-attached custom programs this year and next year. Within your better outlook for custom this year, and with you already starting to ramp your lead customers' next-gen XPU program, do you still anticipate a stronger second-half step-up of this XPU program, or is it more of a linear ramp through the year now? And I think you previously thought that you would exit this year with custom driving about a $2 billion sort of annualized growth rate. What does that exit run rate look like today?

Executive Matt (Title): Yeah, thanks, Harlan. I think the first part of

your question is absolutely seeing strong validation in the market for the AI compute spend and the fact that a significant portion of that continues to go to companies that are building their own XPUs. So that's a positive trend. We certainly see it. And you're right, even where we don't necessarily have the XPU, we have XPU attached. So all the XPU attached is going with XPUs in customers where we're not even participating. So we participate across every one of those large companies and more on XPU attached. So that's a very positive trend for us. That's driving our positive outlook for sure through this year, which we said custom was going to grow faster than we thought, but more meaningfully into fiscal 28 and 29. And then from a linearity perspective, under the hood, we kind of give you a view of what the sequentials would look like throughout the year. But yes, custom we have said was going to be a stronger second half due to a program transition, that's still the case. And the type of exit rate you're talking about is certainly still intact and probably has an upward bias to it.

If you look at the exit rate we're talking about for the whole company now, we're looking at north of 3 billion. So within that, custom continues to have some real upside to it. But that's going to improve meaningfully, and the revenue growth is going to continue into fiscal 28, which is basically those programs from the second half now having a full year, so that's gonna provide some nice growth, content increase, then layering in the XPU Attach, and then layering in our new program with a new tier one hyperscaler, which is in its early stages, but just even the rough plug we have for them, is significantly lower than actually the wafers that we're planning on starting and the material and the production plan we have with our manufacturing supply chain. So I think it's a very reasonable setup for next year with a lot of upward bias, depending on if these trends continue. I appreciate that, Matt. Thank you.

Analyst Aaron Rakers (Wells Fargo): Yeah, thanks for taking the question. I guess my first question is on the optics, the electro-optics business. I know, Matt, you've talked about in the past that your ability to kind of outgrow the pace of what we're seeing in CapEx spend. So I guess my question is, you know, we've seen some massive upward revisions in CapEx. I think most people look at that and say, hey, we're looking at like 60% plus growth this year. Do you think you can grow at that level? And how do you think about the durability of that growth as we move into fiscal? And as we look at the upward momentum we see in the business for this year, a big part of that change is in that electro-optics portfolio. You know, we had been calling it kind of closer to CapEx, you know, as we were modeling what we thought we could do this year, you know, back in the September call and then even in my December call. But now it's clearly, you know, growing more like more like accelerator growth and more like this sort of accelerated CapEx growth. So, yeah, it's growing like 50% plus this year now. And that momentum is going to continue, okay, into fiscal 28.

A couple things are happening there. The first is that as new XPU, GPU, et cetera, generations are released, we are seeing some increased concentration on the attach rate of optics, so that's a positive. You get more 1.6T, which has, you know, just because of its performance, commands higher ASP. So that's going to roll in. And then we have, yeah, we just have some pretty new exciting programs happening in that area. So that business has been growing at, like, 50% a year-ish. You can give it plus or minus. I can get the exact data. But it's been at that rate for some time since we acquired Infi, and the data center stuff really took off. We see that continuing, not only through fiscal 28, but that momentum should continue beyond that. Maybe it's not the exact same magnitude, but it's significant. We have a real head of steam on the electro-optics business at Marvell. Thank you.

Analyst Blaine Curtis (Jefferies): Hey, guys. Thanks for taking my question. Matt, I wanted to ask on the custom business. you know, you feel very confident about that trajectory. I'm just kind of curious, one, can you just help us with 26? Because, I mean, you give us, you know, the big broad swath, but, I mean, is that custom business growing 30% this year? I just want to figure out the base that you're going to double. And can you talk about that second major XCU customer? I mean, to kind of give this type of guidance, like what kind of confidence do you have in the timing of that program?

Executive Matt (Title): Sure, yeah, and I think you're talking about, just to be clear, calendar 26, fiscal 27 on custom business. kind of what numbers are we talking? Is that the first question? The second one is our... Yeah, sorry, fiscal year, but yeah. No, it's okay. I... Fiscal 27, is it around 30%? And then just your confidence level on that second major X view customer and timing as we try to layer that in to get to that double.

Executive Matt (Title): Yeah, great. And by the way, don't feel bad. I've been in this job for 10 years and I still have to translate every day between my fiscal year and my calendar year, so don't feel bad. For fiscal 27, yeah, we had been indicating, you know, after the double from last year, it would grow 20% this year. So we're just saying that's north of that. So I can't give you the exact number now, but it's biased upwards. So just take what I read before. Was that 20? You know, you can make an estimate, but higher, but not significant enough where I would, like, give you a new number, but just say it's biased higher. So in the ballpark, but higher. So then next year obviously gets a little bigger than we thought. And then the reason we're confident is we have line of sight in terms of, well, first of all, we have history, right? We've built these large-scale custom programs before. We've done these ramps before. We have a good sense of when the product is going to go through its key milestones through NPI. We have had very detailed discussions and alignment around the manufacturing plan.

And we've, you know, we've lined up a corridor for fiscal 28 for production on this that would be a lot higher than what I'm indicating to you. I think we're budgeting at the moment for, you know, is there a delay? Does it take longer? You know, et cetera. And plus, I think at the moment, it seems like a lot of folks aren't really believing it's maybe going to do anything. But I think our plug is very, very reasonable for next year, Blaine, in terms of what's there. And I think it would buy us quite a bit higher if we could just achieve what we're planning on reserving in terms of capacity. So more to come there. But I think we try to call the ball as best we can. And in general, we've done a pretty good job over the years of trying to size and judge things in advance. And then usually we're pretty, pretty, pretty, pretty good. And then they buy us upwards. So we'll see where it lands. But I think it's not a big stretch for this custom business to double next year. Appreciate it. Thank you.

Analyst Ben Reitzes (Melius Research): Hey, guys. Matt, nice to see the beat and raise. And thanks for taking the question. You know, I wanted to ask the question about what got better in a different way. I mean, if you could just unpack since December the $2 billion, especially, you know, how fiscal 28 got $2 billion better since December. If we can unpack that and what exactly got better and then potentially, you know, I'm going to be a little greedy here. you know, what can carry into the next year as well, you know, calendar 28 of those signs that you saw since then. Thanks.

Executive Matt (Title): Yeah, thanks, Ben, and great to hear from you. A long time. So I think one is you just kind of look at it as progression. I mean, I guess the first point I'd make is, you know, we tried to give a view for investors to be helpful because there was a lot of concern and angst back at the end of last year. So in September, we talked about 9.4-ish for this year, and then that's now, in December we said that looks more like 10, and now I'm saying it's more like 11. So some of that is just the progression in terms of time and getting better visibility and more concrete. And then that just ripples into, I'll use calendar for a second, calendar 27. But on top of that, I mean, one, we've now got very firm requirements and understand the profile, in particular the interconnect business. And that is, I think we had called it very conservatively. To be frank, you know, and I think even a few analysts last quarter kind of dinged us saying, well, you're plugging your interconnect business at CapEx, but it really looks more like it should be tied to GPU, XPU. And that's really the case. So I think we're seeing that now in terms of the forecast.

So that's come up quite a bit, which then, again, the upward revisions we're seeing for this year then ripple into 2020. into next year and then I just say this is all underwritten, Ben, by extremely strong bookings and backlog layering in and then the detailed conversations with our customers around supply planning. It's just given us a much more concrete view. And by the way, the other reason I think it's important and why we felt it was important to continue to update on this metric is that we set targets back in April of 24 for calendar 28. We did that around some assumptions around data center market share of 20%. And those numbers looked enormous at the time we talked about it. I think you guys were there. You know, we were doing low billions a quarter, you know, in revenue at that time. You know, billion, I think we had guided one, one or one, two. And we put out this number that was like 15 billion in data center revenue in four years. And I think everyone thought we were nuts. At our June AI investor event, we said the TAM went up, so that data center revenue bogey kind of moved up to like, if you just did the math, moved up to more like $18 billion and change.

But now you kind of look at it, and you see where we're landing in calendar 26, and now we're sitting here in 27. I mean, we're very much on track actually to those targets that we had set then. And so in a way, yes, it's some upward revisions and that's part of it is just because we have more data, but it actually is also validating, I think, the plan we set actually four years ago about what we thought we could go off and do, which were very lofty ambitions and we're not there yet. And we have to go execute like crazy, me and the whole team. But we're very encouraged by what we're seeing, and the proof is in the pudding that we're getting in terms of the backlog, forecasts, and alignment with our entire supply chain to be ready to go make that happen both this year, next year, and in calendar 28.

Analyst Tom O'Malley (Barclays): Hey, guys, thanks for taking my question. I think in the preamble, Matt, you talked about AEC and retimers more than doubling in the fiscal year. Could you maybe give us some perspective on the base there? And then you've been really helpful in the next two years kind of giving the contributing factors of what is a pretty impressive growth profile. Maybe talk a little bit about how much that can contribute in this broader overview. Thank you.

Executive Matt (Title): Yeah, hey, Tom. Yeah, this is still an emerging area for us. So, you know, we're saying it's, you know, doubling, over doubling this year, but it's probably in the 200 million range is what I would say. I think based on some of the things we're looking at, maybe that goes higher, but that just gives you a sense of the magnitude. But it's going to keep going from there. We've seen this in a lot of our emerging product areas when we get into them. Once they start doubling, they kind of keep doubling. And you know this market quite well. There's quite a bit of room, I think, for a bunch of people to participate. So yeah, we're very encouraged by what we see based on the traction we have on our products, especially in product leadership. We leverage a lot of our DSP and PAM technology in this area. We inflected when both on the retimer side and AECs moved from NRZ to PAM, and that was our kind of conscious decision to do that. So we're earlier in this cycle because we're coming in in later generations than some of the existing sockets, but we intend to really invest here in a significant way and participate. Over the long term, we see that as complemented.

There's a place in the market for this, and we're going to participate, but obviously we made the bet when you go back to even the InFi acquisition five years ago on optics and pluggable optics in particular, and then now with Celestial also on CPO on the scale-up side. So there's a period of time we're going to participate. I think it's going to be great, and the business is going to do well, and it leverages what we have. I think it's going to be just part of our goal to be the end-to-end provider for our customers of all of these types of solutions, from electrical to optical to silicon photonics, various reaches, various distances, various form factors. That's what our customers are looking for. They want to have an interconnect partner that can be the one stop shop and do it all and have high amounts of leverage on the IT so they can trust it because we do it ourselves. And also on the firmware and the software and the system implementations, they also want to make sure that they have reusability. So it's been a virtuous cycle here. Just the scale up part relative to the scale out is smaller, but growing rapidly.

Analyst Vivek Arya (Bank of America Securities): Thanks for taking my question. Matt, I just wanted to first clarify what your XPU attach was last year and what contribution you expect in 27 and 28. And then kind of my most strategic question is when we look at the pattern of your first large XPU program, right, you had a very strong start followed by a competition from another supplier. how would your handicap kind of your exclusivity at the large new XPU customer you plan to start at next year?

Executive Matt (Title): Yeah. Hey, thanks Vivek. So maybe I'll answer the second one first. So yeah, we're, I think you're asking specifically about our new, our newer program that would ramp next year. And we feel very good about our position. These are, you know, very deep engagements we have with our customers. We're two hands on the steering wheel on this. This is multi-generational in nature. Given the rate of innovation and the pace that the technology is moving at, it's really in everybody's best interest to plan, not just one generation out, but even farther. And so we've really been able to do that, I think, across the board with our customers. And so we feel really good about our position there and the sustainability of that. It still needs to ramp, obviously, but certainly the CapEx envelope is out there to really consume a lot of product, and we're very encouraged by what we see from a roadmap perspective. And we're investing heavily as a company to be there across the board on all of the key attributes that these big XPU customers care about. I think more to come on that as well as future opportunities on XPU for the company.

But we feel very good about our position the next few years in terms of line of sight to hitting the revenue targets that we talked about over the last couple of years and then growing beyond that. And then, oh yeah, I'm sorry, then on the XPU, excuse me, on the XPU Attach, you know, again, the exact numbers, but just maybe big round numbers. And maybe we'll first start with the line of sight just on the NIC and CXL I gave you, which was kind of $2 billion out in 28. And then you layer more on that. And by the way, we had sized for everybody on the call, the XPU attached TAM in the future at about $15 billion in calendar 28. We didn't break it out exactly, but we had a total market share goal of about 20% in that timeframe. So let's just call that 3 billion, we're driving in that area. So let's take a step back now. XPU attached probably in the couple hundred million ballpark, let's say like this last year, doubling this year, maybe over, over doubling again the year after. So I think by next year, this thing's probably a billion dollar type business. We'll see how it all shakes out.

It's all going to happen under the hood of our custom business, Vivek, but just to give you a sense, it's on a massive trajectory upward, and it's in that category of kind of double plus each year. Thank you, Matt.

Analyst Torres Fomberg (Stiefel): Yes, thank you, and congrats on the record quarter. Matt, I was hoping you could give us a bit of an update on the mix of the opto-electronic business. So you talked about 1.6 already shipping, but my understanding is that 800 gig is definitely going to be the bigger volumes this year. So any sense for what the mix is going to look like for fiscal 27 between 1.6 and I guess 8 and even some 400s?

Executive Matt (Title): Yeah, well, I think you got it right, first of all. And we had been saying this for a while, that 800 was going to be sort of stronger for longer. And I think that was our mantra even last year. And that's still the case for sure. But as I mentioned in the prepared remarks, we had significant shipments, actually, of 1.6T at the end of last year. And it's going to ramp, again, pretty hard this year. But 800 will still be the majority. I think it's going to take probably through I mean, even next year, 800 is still going to be strong. So I can't give you the exact breakout at the moment, Tori, but, you know, part of the, I think, the uplift as well in terms of just our outlook for interconnect for the year was also based on kind of all of our customers revising up in terms of what they were going to need, but maybe a little bit more pronounced in 1.6T, and it's really ramping strong with those initial customers we had, and more will layer on throughout the year and next year. So, yeah, maybe more on that later, Tori, but I'm probably not in a position to give you the exact number. And also I'd say the reason why, too, is it's been moving around a lot. I mean, this has been very dynamic in terms of the bookings environment and the demand environment. So I think the mix will have a better view, you know, of what that looks like as we progress throughout the year. Very helpful. Thank you.

Analyst Joe Moore (Morgan Stanley): Great. Thank you. With all the growth that you're looking at here, I wonder if you see anything on the supply chain that could be challenging for you. My sense is you've come a long way in terms of supply chain management since a couple years ago, but just any updates there would be great.

Executive Chris (COO): Yeah, thanks, Joe. Look, we've been in a tight supplier environment for anything that touches AI, you know, advanced web fabrication, advanced packaging, large body substrates since the launch of ChatGPT. And against that backdrop, to your point, we were still able to grow the company north of 40% in total revenue last year. So we clearly have very, very good relationships with our suppliers. But I would argue that really what helps is we've been forecasting this growth for quite some time, you know, and by giving them, you of what we're going to need and ramping into these numbers is really helping us. And so I'm very confident we've secured the supply that we need for all the growth that Matt outlined this year, next year, and beyond. Yeah, we're in good shape, Joe.

Analyst Jim Schneider (Goldman Sachs): Good afternoon. Thanks for taking my question. It was great to hear the increased visibility you have in the business into next year. But if I think about the guidance for $15 billion of revenue next year and $5 of earnings, roughly speaking that's about 15% to where I see the discrete consensus being for next year's revenue, but only about half that on the earnings side. So can you maybe unpack a little bit? What are the moving pieces below the top line whether that's gross margin mix or increased investments to sort of get to that or the $5 number just relative conservative?

Executive Matt (Title): Yeah. Yeah a Jim. Yeah. Yeah, that's like a just a floor like it's five plus and you can you can run the You can run the your own pro forma, you know income statement, but just to give you a sense of how to think about it so on the top line you know, we gave you a framework, and then you can also take basically where we're going to exit this year, and you could use whatever number you want to model finally in your model, but we're saying, you know, put in three or a bit more, and then if you actually just kind of roll through some of the guidance we've given you already for this year on OPEX and the moving pieces on gross margin, you know, we actually start to get to our target operating model, margin model, exiting the year. And, you know, that, you know, probably continues through the next year is a safe assumption. So the number, if you put in 15 and you put in that, it probably floats above $5. So that was not a prescriptive number or a firm number. It was just a five plus.

People are going to have their own estimates, and you guys will sort of come up with your own view, but, but yeah, no, I'm not making any comment about any kind of margin changes or dilution or losing leverage at all. We're going to get leverage, you know, we're in the mid thirties op margins right now. If you kind of look at where we were last quarter and what we're guiding and that's, that should float up throughout the year. And, and then, you know, not, not calling it exactly for next year, but it, it probably would be consistent with our, certainly our exit rate of this year. And so that's a simple way to think about it. So it's, that would pop out a number above $5. Thanks very much for that.

Analyst Christopher Roland (Susquehanna International Group): Hey, Matt. Thanks for answering the question. So mine is around kind of big picture, like this CPO scale-up world. Perhaps if you could describe what it looks like, what it looks like for Marvell. But also in your prepared remarks, you talked about integrating Celestial. It sounds like into the Novium platform. I was wondering, you know, are there potentially like UA Link switch trays that you might be able to integrate this into as well? and just the timing around such products would be cool.

Executive Matt (Title): Yeah, great, thanks. So, yeah, on the initial plan on Celestial, and just by the way, on the big picture side, our view pretty consistently for some time now has been that the deployment of CPO and scale-out would be relatively limited, especially relative to the amount of pluggable transceivers that we're going to get deployed. And we can go back many, many OFCs ago, and that's been our view. And that's been the case to today, for sure. And then I think on the go forward, relatively wise, it's still the case, although you may see some in the industry. That's not our current plan today, although we could absolutely do that and do that integration with the Celestial technology and our Inovium TerraLynx products. And we've done POCs and we've done some work there, but we'll be ready to react to the market there, Chris, when it's needed. On the scale up, and you mentioned UAL, that's a perfect use case where that is where we see that CPO technology inflecting in a pretty big way. And Celestial brought us a pretty significant design win and engagement in that area. And that's what we're trying to drive for next year.

So when we ramp it next year, at the end of next year, that would be serving the scale-up application. And it would be both an integration of the photonic fabric chiplet into the XPU as well as on the switch side. That's the first one. There will be a whole bunch of shipments on scale-up switching that will be copper-based, and that's going to exist for some time too. But we're seeing very, very strong interest across the board for kind of beyond the next few years of where the CPO for scale-up really starts to inflect. And this has been – and that's sort of been our recognition over the last year or two is that's where that's going to happen, and that's why we did the M&A and we brought the team on. So to sum it all up, we'll be shipping next year – you know, CPO for scale up at one large customer. And then we're working on more for beyond that.

Analyst Mark Lepasas (Evercore ISI): Great. Thanks for taking my question and congrats on the great quarter. Matt, I'm wondering when you look at these AI systems that your customers are building, it sounds like the way you're talking about that there's a bigger bottleneck on the connectivity side and the proc...

Q3 2026 Earnings Call — December 2, 2025

Analyst Ross Seymour (Deutsche Bank): Hi, guys. Thanks for the question. Matt, I appreciate all the details you gave about how to think about next year. If I run through those numbers, basically, it sounds like you're implying somewhere around $10 billion in revenue for next year. So I guess, first of all, is that in the right ballpark? And then back in June, you gave a longer-term target for fiscal 29 for your business, especially on the AI side of things. How does what you're looking for next year get you aligned to those long-term targets?

Executive Matt (Title): Yeah, hey, thanks, Ross. I think that's actually a great way to tee up the Q&A here. So, yeah, a couple things. I think you're absolutely in the ballpark when you add up the numbers I gave you on $10 billion for next year, and I think that's a great target, actually, by the way, that's motivational for us as a team to go drive. And just

as a reminder, this is just based on the Marvell Organic plan, no M&A contribution.

A couple things about next year, and then I'll actually give you some commentary on how you think about that slope we're on. For next year, another thing I would note, I didn't say my prepared remarks, but we do expect sequential revenue growth next year every quarter, so year over year. We see a nice growth throughout the year, but I would say the second half of the year is stronger than the first and with a really compelling exit rate to fiscal 27. Now it's a little far out to go all the way to 29, let's say, but let me just give you a pass sort of on where we're headed and how we think about fiscal 28 and how we build on that strong second half we see next year. So a couple things maybe to talk about those same businesses. So first on custom, and just

as a reminder, I mean basically we quadrupled that business from calendar 23 to 24.

We doubled it from calendar 24 to 25. We're saying it's going to be up about 20% this next year. But then when I look at the year after with all this goodness from XPU attached plus a new meaningful XPU socket ramping and the other programs continuing, we see the custom business actually in fiscal 28 doubling off of 27. So we see a re-acceleration big time in that year. And that puts us on a nice trajectory towards our growth targets in fiscal 29 in custom, coming off strong second half next year and then in fiscal 28. On interconnect, look, it's early, but we do expect that business should continue to outgrow CapEx. It's done that for a long time. Look, if you just said, hey, 20% CapEx growth in fiscal 28, and nobody knows what that number is, but just peg that in there for now, we'll definitely grow above that. And I would say our customer forecasts support a much higher number than that. But just as a base case, just assume CapEx is 20 that year, and so optics would grow faster. And then for storage switch and the other part of data center, just assume 10% growth in fiscal 28 over 27. I think that's a reasonable set of assumptions to use based on what we see.

And so when you actually add all that together, you come up with a number bottoms up, which looks more like 40% growth in data center in fiscal 28. So that's what I was talking about in my lead-in, which was, you know, strong data center, 45% growth basically this year in data center, targeting 25% next year, and then 40% the year after. If you actually look at it over like the cycle where we started back in calendar 23, that's like a 50% kind of compounded growth rate we'll be growing our data center business. So the 28 numbers I'm laying out for you are not totally crazy. And then just for reference, if you just sort of plug in comms and other growing in GDP for fiscal 28, just to keep it simple, again, it's too far out, you basically get Marvell growing like another 30% in fiscal 28, which would be above where we're looking for 27. So kind of a long answer, but maybe what's been on a lot of investors' mind is how do you get from where we are to where we're going? But certainly we're very optimistic about our outlook over the next couple of years.

And then things like Celestial AI and some of these other big growth drivers, those are going to kick in, you know, starting in fiscal 28, but then really in 29 and 30 and beyond. And I think through the end of the decade, it's looking very bright for Marvell. Thanks for the question.

Analyst Harlan Sir (JPMorgan): Yeah, good afternoon. Thanks for taking my question, and congrats on the celestial acquisition. Today, Matt, your lead AI customer announced their next generation three nanometer AI XPU product. And I think you just said you have secured purchase orders for this program for the entirety of next year. But your lead customer also pre-announced their next generation two nanometer XPU product today as well, which we believe you're also involved with, especially now with the Celeste team. I remember at the June custom AI event that the team talked about concurrent design programs. In other words, at the same time, you're towards the tail end of your customer's three nanometer design. You're already starting to work with customers on their next generation two nanometer designs. During our fireside chat in September, you talked about the team being heads down focused on two nanometer designs. You even talked about next generation A16 and A14 technologies. Can you just give us an update on your sub-3 nanometer design wind pipeline? Does it include both XPU, XPU-attached programs, and what's the timeline for these programs to ramp into production?

Executive Matt (Title): Yeah, thanks, Harlan, for the question. And yeah, just in the spirit of the customer confidentiality and details, I can't go into too much. But what I would say, which is incorporated into our numbers, is that our product transition from where we are today with our lead XPU customer to the next one is baked into all the numbers I gave you. And I got the backlog and I got the orders and we got great visibility there. On the two nanometer, very exciting. I mean, there's a number of programs that we're working on in this area. And that's going to be a workhorse process technology for us. But yeah, same as I said, and I would just say that the design funnel keeps increasing there. The power benefits you see are compelling. And I think that'll continue. I mean, that's really where AI is sort of kicked in to keep the Moore's Law train running is really the just the power savings are worth real opex dollars when you can save power dissipation from one generation to the other.

So nothing really new to report there other than just heads down execution and we do see strong product ramps coming over this time period I gave you, especially in the fiscal 28 where you'll start seeing some of the two nanometer products ramp and my team internally just to give them a shout-out, is executing extremely well. The whole team you saw that got up there at the AI investor event in June, my engineering leadership, executing extremely well across the board on the core IP, the nodes, the packaging, you know, you name it. So we're really firing on all cylinders internally. Thanks, Harlan.

Analyst Torres Fonberg (Stifel): Yes, thank you and congratulations on the acquisition. I had a question on Celestial AI, Matt. So when you gave those 500 million and 1 billion targets, would that be for the PFLink products only or would that also include some of the potential businesses with memory?

Executive Matt (Title): Yeah, a couple things to note maybe at the highest level. The first is, yeah, the revenue targets and also the earn out that we're all going to drive for is all based on Celestial AI in totality. Now, the reality is, you know, from a lead perspective, you know, the PF shiplet is sort of what's going to go first, but everything's on the table and there's just tremendous activity that that team has driven, you know, punching way above their weight in the industry in terms of the engagements they have. So those are all in numbers, but clearly going to be driven more from the PF chiplet side in terms of the revenue build in end of fiscal 28 and then the end of fiscal 29.

Analyst Chris Casso (Wolf Research): Yes, thank you. Also a question about Celestial. And with that revenue ramp that you're expecting at the end of fiscal 28, beginning of fiscal 29, can you talk about the breadth of that? And, you know, obviously, I'm sure you're not willing to name the customers right now, but is it, you know, a fairly narrow customer base? What's the, you know, and going over time, how diversified is that revenue stream?

Executive Matt (Title): Yeah, no, great question, Chris. The engagement is certainly broad, but remember, there's a bold effort across the industry to really bring this product into volume-stable production, and it's going to take real big companies and a few of them to do that. And so, yeah, we have strong engagement across the board, but there will be – and we're fortunate with this that we have, as I said on the call, we have one tier one hyperscaler that's – that we're engaged with on this that I think is a great partner and a great teaching customer and a great customer to collaborate with to really go make this happen. So it's very exciting to see Celestial come into Marvell because, just

as a reminder, we have an incredibly strong internal silicon photonics organization.

I mean, this team that we got from InFi pioneered this technology. We drove it into high volume production and market leadership in the 100 and then 400 gig ZR business, now 800 gig. So all the DCI stuff they enabled. That's on the back of very, very innovative silicon photonics technology. So we have a ton of know-how here. So then when we bring in Celestial, we're all going to benefit from that common set of learnings. And then having a lead customer pulling us through is very exciting. So I think this is just the first phase here Chris that you're going to see but certainly the interest is there across the industry and this is just so evident to us over the last couple of years and really pronounced at the last strategic review it's a process I run every year where we do our capital allocation review with everybody and that was a couple months back and we're just staring at this just giant transition to Photonics inside the data center in that TAM. And we looked at, could we do it ourselves? Could we do it with a partner? And we just concluded this is a home run to bring them in with our internal team, plus really a lead customer to pull us through the first wave. But beyond that, we see very broad adoption beyond that timeframe.

Analyst Harsh Kumar (Piper): Yeah, hey guys, congratulations Matt and the team on a lot of good things happening. Matt, I had two, so I'll just ask them both together. The first one is on custom, you specifically mentioned at least 20% growth for next year. Seems like you've got a lot of good things happening, a lot of good stuff ramping, and I was hoping that you could bookend that number for us. So at least 20% to me seems like that's what's in the bag. But maybe you could give us a sense of what, you know, if everything worked out right for you, what could be a normalized 2027 FY growth rate for custom? And then the second question was, you gave us a lot of color all the way to FY 2028. And this is kind of not the norm on Wall Street. Most companies go out a quarter, as you well know. So my question is, and this we've been getting from a lot of investors already, is what is your comfort level and what is the visibility on some of this long-term revenue materializing that you're talking about?

Executive Matt (Title): Yeah, sure. A lot in there, but let me unpack it. I think the first is you should definitely model to 20, and I think that is a good number. That's a good safe base case number. And remember, it's a handful of programs today. I think I would just go for that for now. Clearly, we're going to be ready if people want to do more, but I am also mindful of some of the history on this custom business where either people got ahead of themselves or there's a lot of noise in the system. It's just, look, we've got strong backlog. We've got that covered. That's great. If we do better later, we'll definitely update you guys, but we've got a very, very good outlook for next year in that business. And then obviously the year after it really builds. And kind of part of

your question is it's not 20% sort of linearly, meaning the second half, especially in custom and the exit rate is much higher than where we are now. And that's simply because we're building all this momentum into fiscal 28. And then, yeah, on the sort of guide quarter at a time, that's definitely been our MO historically. I think given the multi-year cycles we're looking at now in the AI infrastructure build and also, quite frankly, just being sensitive to investor feedback about looking at some pretty ambitious targets we've set for the company several years out and then wondering, well, how do you see yourselves getting there? And I just view it as it's incumbent on me to paint the picture for folks and share what I see as kind of base case assumptions, as I mentioned. I mean, these are what I view as the base case, not dream the dream, not putting anything in that is sort of a maybe. I think it's very rational how we came up with our fiscal 27 outlook and even our fiscal 28. If you just look at it bottoms up on the custom, we should definitely be able to do that because we know those programs.

I mean, if I say CapEx is growing 20, it certainly may do better, and our optics businesses are going way above CapEx, so that has some legs to it. And then look, even in a quarter, that other category in switching and storage and other has also floated up. So there's still a lot of goodness out there, but I think just from a modeling perspective, that's what you should think about. And I would say finally, it really, though, is tied to our customer planning. I mean, they're realizing to go get all this build to happen. They've got to provide visibility several years out. That's giving us increased confidence in our outlook because we're having to plan around that. Our R&D schedules, our capacity, our ramps, all that stuff has got to go kind of six to eight quarters out now to really be ready. So that's also part of why I felt it was worth sharing this perspective for investors. And, again, I think it's timed well as well with Celestial because then that thing just kicks in beyond the timeframe I'm talking about, fiscal 29. I mean, some of it in fiscal 28, but then really 29, 30, and beyond. So hopefully that was helpful. Thank you so much for the question.

Analyst Blaine Curtis (Jeffrey): Hey guys, thanks for taking my question. I want to ask you, Matt, I know it's always tough to talk about customers, but you did file an AK and it says, you know, you graded Amazon a warrant for a million shares to buy photonic fabric. So I guess one very simply, is that your lead customer? And if you can maybe talk about that expanding relationship, obviously there's been a lot of back and forth, your status of that customer, but this seems like a positive in terms of your engagement for the next generation.

Executive Matt (Title): Yeah, and great job checking out the EDGAR website, Blaine. You're always one step ahead. Yeah, I think it's great. So first we did file Form 8K, talking about really an extension, if you think about it, to the warrant agreement we have, which is effectively adding a new swim lane. And if you can believe it, it was only one year ago that we announced with AWS a warrant and strategic arrangement with them. Back then, a year ago, it was really bucketed between AI custom products and then networking products. And so think of this as just adding another swim lane of photonic fabric products to the mix. And all in, the potential of each of these is quite significant. So that's a positive on the first one. That's out there. Also pleased to get a very, very strong support in our press release for the acquisition from AWS. That was positive.

And so when you sort of look at all the things we're saying and all the data that's out there, you can sort of figure out where we're headed with this and who is helping drive this technology forward. We're very, very excited about where we can go with this technology, especially with our lead tier one hyperscaler, but then also the rest of the market, which I think will be shortly behind them once we can really put the full force of Marvell behind this. So thanks for catching that and giving me a chance to talk about it. It's pretty exciting to see. Really, if you think about it, we've got the Warren Agreement, we've got an aggressive earn out that the team is driving, which is a $2 billion number, by the way, through the end of fiscal 29. So all this adds up to just a great sort of set of incentives for everybody to go execute like crazy and bring this into production.

Analyst Vivek Arya (Bank of America): Thanks for taking my question. Matt, I had two kind of questions on the data center, one on optics and one on customs. So on optics, why correlate it to cloud CapEx? Why not to growth of AI accelerators, which is expected to be much faster than the 30%? And then on the custom side, you mentioned 20% as the baseline growth. Is that because the second customer is supposed to come on board or is it because you will grow with that first customer? And I ask about the second customer because they don't have a history of ramping big ASIC. So I just wanted to get your overall views on, you know, optics and why correlated to CapEx and then on the custom side, you know, just kind of puts and takes of the second customer that's supposed to come on board.

Executive Matt (Title): Yeah. Hey, thanks, Vivek. Yeah. So on your first question, I mean, just the rationale was just to give just a broad proxy to the investment community about how to think about our business off sort of a very common metric, which is CapEx. I agree with you. The optics business is fundamentally driven by AI and AI acceleration, and that's why it's been growing so far above CapEx each year. But I think this was just in the interest of providing some pretty broad brushstrokes, but you should certainly assume that the optics piece is tied to AI, which is growing faster than CapEx. So that's a fair assumption. But just this was really in the spirit of making this a proxy. And then on the growth next year, yeah, that's all still driven by the way to think about it is mostly our current business today. So there's a product transition with our lead customer from one generation to another in there. There's some XPU attached that's kicking in in the second half that's going to lead to the 28 and 29 revenues I was talking about. But the next bigger XPU customer we have, not much of that really you should count on for next year. It's really the year after.

And that's captured in the doubling from fiscal 27 to 28. But I think we've got a very rational base plan for that that we think is achievable. And then, obviously, if things improve or get better, then we would up those numbers. But I think what we're trying to do right now, Vivek, is just paint a very rational, clear picture for people, and then we'll obviously update along the way more on a granular basis as we go forward.

Analyst Christopher Rowland (Susquehanna): Thanks for the question and congrats on the results. So I think your main competitor in ASIC has moved to providing racks, not just silicon. And then with this acquisition and kind of given the increasing complexity we're seeing out there, might you be moving to systems and then perhaps even rack-level solutions as well? And do you have the capabilities to do that?

Executive Matt (Title): Yeah, hey, thanks, Chris, for the question. And I would sort of answer the second part, which is we are very much looking at this as a rack-level solution in totality. And that is all the various flavors of optical interconnect. I rattled through a bunch of those. We're the one-stop shop, right, from AECs, traditional DSPs, retimers, LPOs, photonic fabrics, and then scale-up and scale-out switching and XPU-attached sockets and circuits to go make all this work. And then working closely with our customers with that vision on how we enable that entire end-to-end and enable them to do that. That's our current strategy, and most of the people we're working with have that capability themselves today. They're very good at it, but we also add quite a bit of value in how to think about how to pull it all together. So we absolutely have a rack scale vision, and this is where Celestial AI really fits in, but we don't have any system level revenues comprehended in anything I've talked to you about over the next two years. But certainly from a strategic standpoint, it's imperative, right, that we go to market in a very comprehensive way, Chris, and not in a point solution way, but rather be able to provide all the fundamental pieces, right, from the biggest XPU chip all the way down to a retimer on the board.

Executive Matt (Title): Yeah, fantastic, and thanks for all the great questions, and I appreciate everybody listening. I know it was a lot. I think this was the world record for the longest prepared remarks I've ever done, but like I said at the beginning, settle in because there's a lot of good stuff, and there really is a lot of great things happening with Marvell. I'm just really pleased with how our team is executed. I want to say thank you to all of them. We have a phenomenal setup for next year, as I indicated, and even through the next year, we just have very good visibility. Programs are on track. We are playing offense in this company. We're out doing strategic acquisitions like Celestial AI, and we're thrilled to welcome them to the Marvell team. And I think our future is very bright where we're headed. So appreciate everybody's interest. I look forward to the follow-up conversations and appreciate all the investor interest in following Marvell in our journey. Thank you, everybody. Have a great day.