Marvell posts record Q2 on AI demand, shares fall on silicon pause

Marvell Technology reported record second-quarter results on Aug. 28, 2025, driven by a surge in data center and AI demand, but signaled a near-term pause in custom silicon growth that sent its shares lower in afterhours trading. The Santa Clara chipmaker posted GAAP revenue of $2.006 billion for the quarter ended in early August, up about 58 percent year over year, and non-GAAP earnings per share of $0.67, more than double the prior-year comparable period, management said.

The data center business accounted for roughly 74 percent of revenue, generating about $1.49 billion, a 69 percent increase from the prior year as sales of custom AI silicon and electro‑optics accelerated. Chief Executive Matt Murphy said the company is engaged in over 50 new custom AI opportunities across more than 10 customers, and described the quarter as evidence of strong AI-driven demand and improving enterprise networking and carrier infrastructure markets.

Marvell also completed a strategic divestiture of its Automotive Ethernet business for about $2.5 billion in mid-August, a move management said sharpens the companys focus on AI and cloud markets. Proceeds from the sale will be used to support share...