Marvell meets earnings expectations, but here’s what’s really on investors’ minds

Marvell Technology Inc. has reported fiscal first-quarter earnings that align with analysts’ expectations. However, investors are more focused on the company’s relationship with Amazon Web Services (AWS), as it remains a key area of concern amid Marvell’s significant stock decline this year.

Marvell’s Q1 2025 Earnings: Key Numbers

Marvell Technology posted $1.9 billion in revenue for the April 2025 quarter, marking a 63% increase year-over-year. This revenue figure met the expectations set by analysts at FactSet. Specifically, data-center revenue reached $1.4 billion, which also matched estimates. The company reported adjusted earnings of 62 cents per share, exceeding the 61 cents per share anticipated by analysts.

Marvell CEO Matt Murphy emphasized the company’s strong performance, stating, “We delivered record revenue in the first quarter and are forecasting continued growth into the second quarter.” Marvell has projected $2 billion in revenue for the upcoming July quarter, in line with analysts’ forecasts.

Investors Eye Amazon and AI Growth

The momentum driving Marvell’s results is primarily attributed to strong AI demand in the data-center market. Murphy highlighted that custom silicon programs and electro-optics products are benefiting from the rapid scaling of AI infrastructure, a trend that Marvell sees as central to its future growth.

“The industry is moving toward building custom AI infrastructure, and Marvell is uniquely positioned at the center of this transformation,” Murphy added. “We expect our custom silicon business to drive strong growth in the second quarter and beyond.”

However, Marvell’s stock has struggled, with shares dropping by more than 3% in after-hours trading and over 40% year-to-date.

Analyst Concerns About Marvell’s Amazon Partnership

Ahead of Marvell’s earnings announcement, analysts at Morgan Stanley lowered their expectations after the company narrowed its guidance range for the quarter. Marvell reduced its revenue projection to $1.85 billion (±2%), down from the prior forecast of ±5%.

Despite positive signals from the Trainium chip supply chain and expected growth in optical and AI applications, analysts expressed reservations about the quality and sustainability of Marvell’s business. Some experts remain uncertain about the future of Trainium chips, particularly given that Marvell’s partnership with Amazon Web Services has yet to fully materialize into sustained growth.

Morgan Stanley analysts stated, “While Marvell’s revenue from application-specific integrated circuits (ASICs) should be stable in the short term, we have concerns about the company’s long-term prospects in the face of mounting competition from firms like Taiwan’s Alchip.”

The Amazon Connection: What’s Next for Marvell and AWS?

Marvell has forged a strategic partnership with Amazon to provide data-center chips and custom AI solutions, including the Trainium family of chips. As Amazon continues to scale its AI infrastructure, many investors are eagerly awaiting updates on how Marvell plans to maintain and grow its relationship with the cloud giant.

Earlier this month, analysts at Melius Research voiced concerns over Trainium 3 and Trainium 4 accelerators, which they say could limit Marvell’s upside potential through 2026-2028. With ongoing worries about potential content losses to Alchip, investors are keeping a close eye on how Marvell handles competition in the growing AI chip market.

As one Melius analyst noted, “If there’s no significant upside — and even downside risks — investors need to rely on perfect execution to maintain a long-term role in the unproven Microsoft accelerator line.”

What’s Next for Marvell Stock?

Although Marvell’s earnings results were solid, the real focus for investors remains on the future of its Amazon partnership and its ability to stay competitive in the rapidly-evolving AI chip market. With the company’s stock down by over 40% in 2025, analysts and investors alike are closely watching for updates on Marvell’s custom silicon business and its next steps with Amazon.