Marvell

Posted on | by Leon Hinde | Leave a Comment on Marvell

Marvell Technology, Inc. – Common is rated a buy with the stop loss at $177.57

Upcoming Earnings Outlook: Expected Release Date: August 27, 2026 (After Market Close)

  • Fiscal Period: Q2 Fiscal Year 2027 (Quarter ending late July 2026)
  • Consensus Estimates: Non-GAAP EPS: $0.87 – $0.93 per share (vs. $0.67 in Q2 FY2026, representing ~30%–38% YoY growth)
  • Consensus Revenue: ~$2.60B – $2.71B (vs. $2.01B in Q2 FY2026, representing ~30%–35% YoY growth)

      Key Drivers & Long-Term Growth Outlook: Marvell’s custom ASIC program (designing tailored AI chips for cloud hyperscalers like AWS, Google, and Microsoft) and optical connectivity solutions (800G / 1.6T DSPs) remain the primary catalyst.

        • Accelerating Quarterly Trajectory: Management guided sequential revenue acceleration throughout FY2027, aiming for quarterly revenue to reach ~$3.0 billion in Q3 and Q4.

        Full-Year FY2027 & FY2028 Targets:

        • FY2027 Revenue: Expected to reach ~$11.5 billion (+40% YoY growth), driven by >50% growth in the Data Center segment and >70% growth in optical interconnects.
        • FY2028 Target: Revenue guided toward ~$16.5 billion as cloud hyperscaler AI capital expenditure expands further.

          Key Things to Watch on Earnings Day

          1. Custom AI ASIC Shipments: Progress on hyperscaler customer design wins ramping into volume production.
          2. Gross & Operating Margins: Non-GAAP gross margins (target zone ~59–60%) and expense control as R&D investment increases.
          3. Hyperscaler AI Capex Trends: Any commentary on customer demand pacing for 800G/1.6T electro-optics and PCIe/CXL switches.
          4. Supply Chain Capacity: Lead times and substrate/co-packaged optics assembly capacity.

          Applied Optoelectronics

          Posted on | by Leon Hinde | Leave a Comment on Applied Optoelectronics

          Applied Optoelectronics, commenced construction on a nearly 400,000-square-foot expansion in Pearland, Texas, to support volume production of its 800G and 1.6T optical transceivers for AI datacenters.

          Sector Rotation out of Crowded AI Infrastructure Trades

          • Capex Sustainability Concerns: Concerns over hyperscaler capital expenditure returns (highlighted by heavy capex outlays across big-tech AI buyers) triggered widespread profit-taking across crowded AI component trades.
          • Peer De-rating: Peers like Lumentum (LITE) and Coherent (COHR) also faced steep pullbacks as high-multiple optical names were sold off in favor of cash-generative value trades.

          5/8 Update: Hold and watch the earnings release. Scheduled to release its Q2 2026 financial results on Thursday, August 6, 2026, after Market Close.

          Wall Street Expectations

            • Revenue Guidance / Estimates: Management guided Q2 revenue in the range of $180.0M – $198.0M.
            • EPS Estimate: Consensus estimates project Non-GAAP EPS around -$0.03 to +$0.03 per share.