Recently, Marvell Technology released its fiscal Q2 2026 earnings report (ending August 2, 2025) along with guidance for the next quarter. While results largely met expectations, its revenue outlook fell short of Wall Street forecasts, raising concerns despite the booming demand for AI-related chips.

According to Reuters, Marvell posted Q2 revenue of $2.01 billion, with data center sales surging 69% year-over-year to $1.49 billion. However, this still missed analysts' estimate of $1.51 billion. For Q3, Marvell expects revenue around $2.06 billion (±5%), compared to market expectations of $2.11 billion.

CEO Matthew Murphy noted that growth in data center demand was softer than anticipated, leading to a modest Q3 outlook. He added that recovery is expected in Q4, influenced by supply chain adjustments and demand patterns from major partners such as Microsoft and Amazon.

Industry sources highlight that Microsoft has delayed the launch of its in-house AI chips to 2028 or later, which has slowed Marvell's related component shipments. Meanwhile, Amazon AWS reported 17.5% revenue growth in Q2, trailing behind Microsoft Azure (39%) and Google Cloud (32%) in the cloud computing race.

Analysts believe Marvell still holds strong potential in the custom ASIC market, but it could take 12–18 months to diversify further and achieve more stable growth.