Marvell Technology, Inc. MRVL is set to report its fourth-quarter fiscal 2025 results on March 5, and all eyes are on the company’s booming artificial intelligence (AI)-driven data center business.

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Over the past year, Marvell has significantly ramped up its custom AI silicon and electro-optics offerings, positioning itself as a key player in the AI infrastructure ecosystem. With data center revenues now accounting for the majority of its total sales, the upcoming earnings report is expected to highlight continued growth in this high-demand sector.

Click here to know how Marvell’s overall fiscal fourth-quarter results are likely to be.

Data Center Momentum to Drive Marvell’s Growth

Marvell’s data center segment has been the company’s strongest performer, fueled by the increasing adoption of AI workloads across hyperscale and enterprise markets. In the third quarter of fiscal 2025, the data center business reported record revenues of $1.1 billion, marking a 98% year-over-year increase and 25% sequential growth. This robust expansion was driven by surging demand for custom AI silicon, high-performance networking chips, and electro-optics solutions.

For the fourth quarter, Marvell expects its data center revenues to grow by another 20-25% sequentially, supported by strong customer orders and supply chain readiness. The company’s close collaboration with cloud giants such as Amazon Web Services (“AWS”) — through a recently expanded multi-year agreement — reinforces its leadership in providing AI-optimized silicon solutions. Our model estimates suggest that fourth-quarter data center revenues will reach $1.36 billion, implying a robust 23.5% sequential growth.

Marvell’s Custom AI Silicon: A Key Growth Catalyst

Marvell has gained significant traction in the AI semiconductor space through its custom AI silicon programs. The company has successfully ramped up its 100-billion-transistor AI accelerators, delivering first-pass silicon success to customers. These highly complex custom chips have allowed Marvell to secure deeper partnerships with hyperscale customers looking to optimize AI workloads with tailor-made solutions.

CEO Matt Murphy emphasized in the third quarter earnings call that demand for custom AI silicon remains strong, with the pipeline expanding across multiple customers. Marvell’s ability to design and manufacture high-performance, power-efficient AI processors gives it a competitive edge in the rapidly growing AI data center market.

During the last quarter earnings call, management revealed that it is set to significantly exceed the full-fiscal 2025 AI revenue target of $1.5 billion. The growing demand for custom AI silicon is anticipated to have driven the data center revenues in the fourth quarter.

Marvell’s Electro-Optics & Networking to Aid Revenue Growth

Apart from custom silicon, Marvell’s electro-optics and high-speed networking segments are also set to contribute significantly to the fourth-quarter revenues. The company’s 800-gig PAM and 400ZR interconnect solutions have seen strong order momentum, helping hyperscalers manage the exponential growth in AI-generated data traffic.

Additionally, Marvell has begun shipments of its industry-leading 1.6T PAM DSP technology, which enhances bandwidth efficiency and energy savings for next-generation data center interconnects. In the last reported quarter, electro-optics revenues grew by double digits sequentially, and the segment is expected to have posted further gains in the fourth quarter as AI adoption accelerates.

MRVL’s Zacks Rank & Other Stocks to Consider

Marvell currently carries a Zacks Rank #2 (Buy).

Atlassian TEAM, Radware RDWR and Fortinet FTNT are some other stocks that investors can consider in the broader Zacks Computer and Technology sector. TEAM, ZS and FTNT carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Atlassian shares have soared 32.5% in the past year. The Zacks Consensus Estimate for TEAM’s fiscal 2025 earnings is pegged at $3.44 per share, indicating a 9.2% year-over-year increase.

Radware shares have gained 18.5% in the past year. The Zacks Consensus Estimate for RDWR’s 2025 bottom line is pinned at earnings of 95 cents per share, indicating a year-over-year decline of 20.1%.

Fortinet shares have surged 49.4% in the past year. The Zacks Consensus Estimate for FTNT’s full-year 2025 earnings is pegged at $2.43 per share, suggesting a year-over-year increase of 2.5%.

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