Marvell Technology Inc Fireside Chat Hosted by JPMorgan Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : That's fair.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Yes.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Yeah.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : No. I think that was a great overview, very articulate because as you know, that's been one of the concerns by the market is how do we think about the shape of Marvell's growth profile for next year. So I think that was hugely insightful. And like you said, I think part of the reason for you being here today is maybe some of the incremental confidence and visibility on when a lot of these programs are going to fire. So I'm just going to kick it off with a number of questions. And we'll get into more details on a lot of the segments that you talked about. But let's just go back to the initial controversy and misconceptions around the business. And so based on your comments about not expecting any hole in revenue from your lead XPU program next year, strong confidence in growing custom revenues in the 18% high teens range as a floor next year. Also, most of that coming from your existing XPU socket wins. I think that the only reasonable interpretation conclusion is that you have to be participating in your lead customers' next-generation program, which has always been my assumption and a topic that we've written on extensively. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2025 / 5:00PM, JPM.N - Marvell Technology Inc Fireside Chat Hosted by JPMorgan I understand that you can't comment specifically, but I think you've kind of laid out the breadcrumbs very clearly, which investors and I should appreciate. Is that fair?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : That's great. And then at the June Custom AI event, the team talked about this notion of concurrent design programs, right? In other words, at the same time that the team is at the tail end of your customer's 3-nanometer design, you're already working with your customers on their next-generation 2-nanometer designs. I specifically asked Will Chu. He's the head of your custom cloud programs, right? Is the Marvell team already working on customers' next-generation 2-nanometer designs? He said, quote, absolutely right. So my question to you is has anything changed from the June event as it relates to 2-nanometer engagements? Or is the Marvell team still very much engaged on follow-on 2-nanometer programs with all of your major customers?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Great. I mean, let's shift from the sort of -- focus on customers and near-term programs, like let's just shift and you brought this up in your commentary part to this. But let's just shift to the overall pipeline, right, the custom XPU attach pipeline, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2025 / 5:00PM, JPM.N - Marvell Technology Inc Fireside Chat Hosted by JPMorgan And as you rightly pointed out, at the June AI investor event, the team outlined 18 multigenerational custom XPU and custom XPU attach wins, right? And you mentioned on the recent earnings call, additional design wins, the same thing that you mentioned today for custom taking your sockets to something greater than 18, right? I mean, can you just -- any more color that you can give in terms of the incremental revenue that these design wins are expected to drive? And more importantly, sort of the time frame which these 18 programs will start to contribute more incrementally, more significantly to [revenue] profile of your AI business as we move forward in time.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : No, that's great. And I've gotten a couple of questions from investors here. And I think you did a great job of outlining a baseline sort of floor/baseline view the data center business in calendar '26, right? And I interpret that as somewhere at the baseline floor and sort of that high teens, the plus 20% growth in the data center business looking into calendar '26 kind of rough numbers, right? And we all know that you have a goal of 20% share of the total data center market by calendar '28, which would imply off of the 26% of baseline that you gave us that Marvell team should see acceleration in their data center business in calendar '27 and calendar '28. With the pipeline that you see today and the update that you gave us today, your confidence level on acceleration of data center in calendar '27 and calendar '28?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Okay. Perfect. Let's move over to the electro-optics business, right? You talked about it at the beginning of our conversation. And you've said it over the past number of earnings season. But to your point, I'm not sure that the market truly understands the growth and the scale of your optics business, right? We used to cover Inphi. When you guys acquired Inphi, I think they were driving $800 million a year in electro-optics. This year, 50% of your data center business, that's a $3 billion optical franchise. So just huge growth in your optical business. And obviously, the Marvell team continues to remain the leader in that space, right? And so with that in mind, like the team kind of near term, you guided your optical business to grow double digits sequentially here in fiscal Q3. It seems like the market isn't, like I said, valuing this business appropriately. Do you see this continuing to grow for Marvell in the long term? I know you gave us your view on optical for next year. But how do you think about the growth in optical more longer term? And what are you seeing on the competitive side as investors are concerned about potential share loss on your core DSP business, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2025 / 5:00PM, JPM.N - Marvell Technology Inc Fireside Chat Hosted by JPMorgan And to put things into context, it feels like from 200 gig to 400 gig to 800 gig to 1.6T, like every transition, there always seems to be a lot of noise on the competition. From my perspective, Marvell always ends up coming out the predominant share leader in this space. But what are you also seeing on the competitive side as we move to the 1.6T generation?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Yeah, exactly. And let's pivot.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Yeah, exactly. And let's pivot over to that because I do think that the Marvell -- core Marvell team's historical leadership in networking and then you overlay that with the optical capabilities that the Inphi team brought to the Marvell team, I think it sets you really, really well for this incremental opportunity that the market is starting to figure out, which is this scale-up networking connectivity architecture, right? Scale up or what we call within rack connectivity this opportunity driven by the continued deployment or expansion of deployment of rack-scale based AI systems, right? And the Marvell team offers a wide range of solutions here, your switching architecture, AOCs, AECs, retimers, and more. Maybe, Matt, walk us through the opportunity for Marvell, highlight some of the new products you're developing to capture this growth. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2025 / 5:00PM, JPM.N - Marvell Technology Inc Fireside Chat Hosted by JPMorgan But additionally, like how does the opportunity evolve across the different technology protocols for scale-up such as Ethernet, UALink and PCIe Express?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : That makes a lot of sense. And that's a good segue into maybe diving a little bit deeper into your switching franchise, right? Because as you mentioned, you bought Innovium, quite a bit of success with the first generation 12.8T switching platform, you're now ramping your 51.2T, what they call Teralynx 10 switching platform, which is comparable to Broadcom's Tomahawk 5 switching chip. Maybe just give us an update on current revenue levels. I think you did throw out some revenue levels, but could you just reiterate that customer design wins? We know that you do have a primary customer, but customer design wins beyond the primary customer. And maybe share just any insights on the team's product cadence and roadmap over the next few years.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : No. And I agree with you. And I think as you rightly pointed out, this is a strong differentiation and springboard which to then enter the scale-up segment of the market, which is now just emerging. Let's pivot over to because you have -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2025 / 5:00PM, JPM.N - Marvell Technology Inc Fireside Chat Hosted by JPMorgan

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : That's -- you brought up as you were talking about how you think about growth in your data center business next year, did break out the other part of the data center business, which included switching, but it included storage. And I feel like a lot of times, the market sort of misses the fact that Marvell for a long period of time has been a powerhouse in storage controller silicon capabilities, right? And the good news about storage and storage controllers is that we are seeing a lot of strong demand pull for high-capacity HDD. We're seeing the strong demand pull for enterprise SSD, right? The market has been looking for what is that correlation between AI demand and workloads and the impact that it has on the high-capacity HDD and enterprise SSD segments of market. That's now finally starting to emerge, right? And so the good news is Marvell team, as most of us that have followed Marvell for a long time, knows that you have a very strong position in both nearline HDD controllers and enterprise SSDs like Seagate, Micron, Kioxia, right, all customers. There's a strong demand pull, like I said, these solutions for AI now. Storage was at $1,800 million a year business for Marvell, as you pointed out. What's the revenue run rate today? I think you said we're getting pretty close there. And can you discuss your design win pipeline? And is there more growth beyond this $800 million floor as you move forward in time?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : And as we near the top of the hour, and I really appreciate the update from the team here, I have to end it with this, which was it was great to see the $1 billion ASR that you announced earlier today in addition to the $300 million that you've already bought back in this current quarter, right? You also announced the new larger $5 billion stock buyback authorization. You're driving, I don't know, close to like $400 million of free cash flow per quarter. So how should we think about -- when we think about Marvell, how should we think about the mix between buybacks and M&A going forward?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Absolutely.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : You did. And you are.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : I appreciate that, Matt. And Ashish as well. Thank you very much for the great insights today. I think you really did a great job of clearing the air on some of the controversies, misconceptions, but more importantly, laying out the strong forward growth opportunities, right, as you just highlighted. And I also want to thank everyone on the call for listening today as well. So hopefully, everybody has a great week, and thank you for tuning in.