Marvell Technology, Inc. (MRVL Quick QuoteMRVL - Free Report) is set to report its first-quarter fiscal 2026 results on May 29, and investor attention is firmly focused on Marvell Technology’s surging AI-driven data center business.

Marvell Technology has been experiencing robust adoption of its custom AI silicon and electro-optics solutions in recent quarters, cementing its position in the AI infrastructure market. With data center revenues now accounting for the bulk of its total sales, Marvell Technology is expected to show robust growth in this high-demand business.

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

Data Center Growth to Drive MRVL’s Q1 Results

Marvell Technology’s data center segment is propelling the company’s growth, driven by the rising adoption of AI workloads across both hyperscale and enterprise markets. In the fourth quarter of fiscal 2025, the data center business reported record revenues of $1.37 billion, marking a 78.5% year-over-year increase and 24% sequential growth. The strong top-line growth in the data center segment was driven by rising demand for custom AI silicon, high-performance networking chips, and electro-optics solutions.

For the first quarter, Marvell Technology anticipates that its data center revenues will grow in mid-single digits sequentially, backed by robust traction across its offerings and supply chain efficiency. Marvell Technology’s partnership with cloud computing leaders, including Amazon Web Services (“AWS”) through multi-year agreements, reinforces its leadership in delivering AI-optimized silicon solutions. Our model estimates suggest that first-quarter data center revenues will reach $1.395 billion, implying robust 71% year-over-year growth.

MRVL’s Custom AI Silicon is a Key Growth Driver

Marvell Technology is experiencing robust demand for its AI semiconductor, offering on the back of its custom AI silicon programs. Marvell Technology recently ramped up its 100-billion-transistor AI accelerators, providing first-pass silicon capabilities to customers. These highly complex custom chips have allowed MRVL to secure deeper collaborations with hyperscale customers looking to optimize AI workloads with tailor-made solutions.

Marvell Technology’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, enabling it to expand its pipeline across multiple customers. The growing demand for custom AI silicon is anticipated to have driven the data center revenues in the first quarter.

MRVL’s Electro-Optics & Networking to Boost Sales

Apart from custom silicon, Marvell Technology’s electro-optics and high-speed networking segments are also set to contribute significantly to first-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 Technology 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. Additionally, Marvell Technology expects its 3nm DSPs for 1.6T optics to reduce power consumption by 20%, giving it a strong reason for adoption among its customers.

Weakness in Consumer & Industrial Markets: Concern for MRVL

Marvell Technology’s industrial business is experiencing lumpy order patterns, and it anticipates the segment’s revenues to decline in high-single digits sequentially, partially offsetting the growth in the automotive business. MRVL is also anticipating its first-quarter fiscal 2026 revenues for its consumer end market to decline by approximately 35% sequentially due to gaming seasonality.

Considering all these factors, the Zacks Consensus Estimate for Marvell Technology’s fiscal first-quarter revenues is pegged at $1.88 billion, indicating a year-over-year rise of 68.6% and a sequential growth of 3.5%.

The Zacks Consensus Estimate for MRVL’s first-quarter earnings is pinned at 61 cents per share, indicating year-over-year growth of 154.7% and a sequential rise of 1.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

MRVL Zacks Rank & Stocks to Consider

Marvell Technology currently carries a Zacks Rank #3 (Hold).

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