Marvell Technology (MRVL Quick QuoteMRVL - Free Report) recently launched the industry’s highest-performance and lowest-power single-chip 800 GbE PAM4 Physical Layer (“PHY”) device, Alaska C X9340P. The device features built-in Media Access Control security (“MACsec”) and full support for Precision Time Protocol (“PTP”).

The new 5-nanometer (nm) 1.6T Ethernet PHY, with 100 G input-output capability, is developed on the 112-gigabyte per second SerDes technology. It delivers 40% lower power per bit compared to previous-generation PHYs.

The device performs IEEE 802.1AE MACsec encryption functionality for two ports of 800 GbE, four ports of 400 GbE, eight ports of 200 GbE or sixteen ports of 100 GbE. This enables flexible encryption deployment while avoiding the cost and power burden of including this functionality in the application-specific integrated circuit switch. It gives a vendor-independent, hardware-based link-layer security control of networking equipment elements to cloud data center customers.

Available for sampling to selective customers at present, the Marvell Alaska C X9340P supports Class C PTP timestamping functionality, which allows the support of sub-microsecond end-to-end clock synchronization accuracy required for 5G Ultra-Reliable Low-Latency Communication services.

Marvell Technology, Inc. Price and Consensus

Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote

Marvell’s new Ethernet solution is built for the cloud data center and high-density communication network applications based on 100G serial electrical signaling that requires MACsec, IPsec, PTP or Hitless Mux functionalities. It supports a variety of gear boxing modes to translate among the 10G/25G NRZ, 50G PAM4 and 100G PAM4 modes for 800 GbE, 400 GbE, 200 GbE and 100 GbE.

Marvell is benefiting from the solid demand for its storage and networking chips from the 5G infrastructure and data center end markets. Last week, MRVL commenced the sampling of Marvell Spica Gen2 800Gbps PAM4 DSP, which is a next-generation solution for the cloud data center, high-performance computing and artificial intelligence optical transceivers.

The new electro-optics platform is designed on advanced 5 nm process technology with companion transimpedance amplifiers and a linear driver that delivers industry-leading power efficiency, resulting in greater than 25% power savings compared to the previous versions of Spica PAM4 DSPs. The PAM4 DSP platform enables less than 12-watt 800G QSFP-DD800/OSFP optical transceiver modules.

In October, Marvell unveiled a comprehensive 3 nm silicon technology platform to enhance its solution portfolio across the cloud data center, carrier, enterprise and automotive markets. The 3 nm silicon platform is currently in fabrication with Taiwan Semiconductor Manufacturing Company on its 3 nm shuttle.

In May, the company introduced its third-generation Marvell Brightlane Ethernet Switch, the industry’s most advanced automotive securely managed switch. It is the first with lockstep dual-core arm processing redundancy to enable high reliability for mission-critical applications that support vehicle safety and performance.

Nonetheless, organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns. These can undermine Marvell’s near-term growth prospects.

In the last reported results for the third quarter of 2023, the company’s top and bottom lines missed the Zacks Consensus Estimate. Moreover, Marvell’s fourth-quarter revenue guidance depicts around 4% year-over-year growth, which is way lower than the more than 20% increase it has witnessed in the past seven quarters.

Zacks Rank & Key Picks

Marvell currently carries a Zacks Rank #5 (Strong Sell). Shares of MRVL have slumped 52% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Celestica (CLS Quick QuoteCLS - Free Report) , Fabrinet (FN Quick QuoteFN - Free Report) and Zscaler (ZS Quick QuoteZS - Free Report) . While Celestica sports a Zacks Rank #1 (Strong Buy), Fabrinet and Zscaler each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have risen 16 cents to $1.86 per share in the past 60 days.

CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have increased 5.8% in the past year.

The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 16 cents northward to $1.89 per share over the past 60 days. For fiscal 2023, earnings estimates have improved by 7.6% to $7.48 per share in the past 60 days.

FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed the same once, the average surprise being 5.4%. Shares of the company have risen 11.8% in the past year.

The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 3 cents north to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by a penny to $1.23 per share in the past seven days.

ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 62% in the past year.