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Marvell Technology, Inc. MRVL

Three-pass checkedFresh as companies report

Marvell sold its automotive ethernet business to Infineon for $2.5B last August and booked a $1.8B gain, which is why one quarter shows $1.90B of net income against $357.8M of operating income.

Strip that out and what remains is a company where three quarters of revenue is data center silicon growing 27%, priced at $200.8B.

MRVL · price with moving averages

Daily · 6MWeekly · 3Y
$26$103$179$255$332 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

Marvell designs chips and has someone else make them. The valuable part is custom silicon: when a hyperscale cloud company wants its own artificial-intelligence accelerator or networking chip rather than buying a standard one, Marvell is one of a very small number of firms that can design it to order. Alongside that sits merchant silicon for moving data around inside and between data centers, which is the older business.

Data center is now 76% of revenue. Communications and everything else is the remaining 24%. After the Infineon sale, automotive is gone.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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