Marvell Technology Inc. today posted quarterly financial results and guidance that handily topped the consensus analyst estimate.

Shares of the chipmaker rose more than 8% in after-hours trading.

Marvell supplies semiconductors for data centers, carrier infrastructure and cars. It sells specialized processors optimized for tasks such as managing encryption keys. The company also sells other products, including networking modules that make it possible to transmit data as light over fiber-optic cables.

Marvell generated adjusted earnings of 43 cents per share in its fiscal third quarter ended Nov. 2. Analysts were expecting $0.41 per share. The company’s top line likewise exceeded the consensus estimate, growing 7% year-over-year, to $1.52 billion.

Marvell attributed its better-than-expected sales primarily to strong demand across two product categories: custom artificial intelligence chips and interconnects. 

Marvell has a business unit dedicated to making ASICs, or application-specific integrated circuits. Those are custom chips designed from the ground up for a specific customer’s requirements. Marvell has designed more than 2,000 custom chips since launching its ASIC business 25 years ago. 

The company can adapt its processor designs to a variety of manufacturing processes depending on a customer’s requirements. That includes three-nanometer technology, which represents the current cutting edge of semiconductor production. Meanwhile, a partnership with Arm Holdings plc enables Marvell to incorporate the British chip designer’s core blueprints into its ASICs.

Marvell also brings its own intellectual property to chip projects. The company has developed an interconnect that can move data between the silicon dies in a chip at speeds of up to 240 terabits per second. Marvell also offers SerDes modules, which turn data into a form that can be moved between dies, and various other supporting components.

The other major contributor to the company’s sales growth last quarter was its interconnect business. The unit makes chips that make it possible to move data between a server’s different components, as well as from one server to another.

Marvell debuted its newest interconnect product, Ara, a few hours before releasing today’s earnings report. The device is designed to coordinate the process of sending data over optical networks. Marvell is promising top speeds of 1.6 terabits per second with 20% lower power consumption than earlier products. 

The company expects its sales momentum to accelerate this quarter. Marvell is forecasting revenue of $1.8 billion with a 5% margin of error, which would represent year-over-year growth of 28%. Analysts were expecting $1.646 billion. The company’s adjusted earnings forecast of 59 cents per share likewise topped the consensus estimate.

“We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026,” said Marvell Chief Executive Officer Matt Murphy.

Photo: Marvell