Marvell's Q2 Revenue Hits Record on AI Demand

Marvell Technology delivered a record quarterly revenue of $2.739 billion for fiscal Q2 2027, up 37% year over year, with non-GAAP EPS of $0.94 beating estimates. The data center segment surged 46% annually, now representing about 79% of total revenue, underscoring a shift toward AI infrastructure demand. CEO Matt Murphy cited robust AI-related bookings in optical interconnects, Ethernet switches, and custom XPUs as the primary driver, while the company also highlighted margin expansion and ongoing AI investments. Management raised its outlook for Q3 to roughly $3.15 billion in revenue and about $1.10 in non-GAAP EPS, and lifted full-year guidance for 2027 and 2028. A strategic Google custom-silicon deal adds a long-dated demand signal, including a warrant for up to 7% of Marvell shares, diversifying its hyperscaler exposure. The quarter was accompanied by stock activity and shareholder returns as Marvell emphasizes AI buildout, including a recent stock repurchase and integration into the S&P 500 in 2026, with investor reception mixed as results exceeded estimates.