Marvell (MRVL) Q1 2027 Earnings Transcript

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Date

May 27, 2026

Call participants

• President and Chief Executive Officer — Matthew J. Murphy
• Chief Financial Officer — Willem A. Meintjes
• Chief Operating Officer — Christopher Koopmans

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Takeaways

• Total revenue -- $2.418 billion, up 9% sequentially and 28% year over year, exceeding the midpoint of guidance.
• Data center revenue -- $1.8 billion, representing 76% of total revenue, with 11% sequential and 27% year-over-year growth.
• Non-GAAP earnings per share -- $0.80, up 29% year over year and $0.01 above the midpoint of guidance.
• GAAP gross margin -- 52.1%; Non-GAAP gross margin -- 58.9%.
• GAAP operating expenses -- $921 million, with non-GAAP operating expenses at $577 million.
• GAAP operating margin -- 14%; Non-GAAP operating margin -- 35%.
• Operating cash flow -- $639 million, a company record.
• Capital return -- $200 million in share repurchases, and $54 million in dividends paid during the quarter.
• Total debt -- $4.96 billion, with a gross debt to EBITDA ratio of 1.44x, and a net debt to EBITDA ratio of 0.32x.
• Second quarter revenue guidance -- Forecast of $2.7 billion, ±5%, equating to 12% sequential and 35% year-over-year growth at the midpoint.
• Full-year outlook -- Expected fiscal year 2027 revenue of nearly $11.5 billion, approximately 40% annual growth; fiscal year 2028 revenue guidance raised to $16.5 billion, up approximately 45% from fiscal year 2027.
• Data center fiscal year 2027 revenue guidance -- Projected growth of approximately 50% year over year, with the interconnect segment forecasted to increase over 70% year over year.
• Data center fiscal year 2028 revenue guidance -- Expected growth of approximately 55% year over year, accelerating from prior periods.
• Interconnect business -- Now expected to grow more than 70% year over year in fiscal year 2027, well above last quarter’s 50% projection.
• Quarterly revenue outlook -- Company guiding for at least 10% sequential quarterly revenue growth in the second, third, and fourth quarters, with third quarter revenue now expected to hit $3 billion.
• Plasmonic photonics acquisition -- Acquisition of Polariton enables greater than 1 terahertz modulator bandwidth, expanding the device portfolio for high-speed optical transmission.
• DCI module revenue -- Business expected to reach $1 billion annualized revenue in fiscal year 2028, double fiscal year 2026 levels.
• Scale-out switching -- Expected revenue of over $600 million in fiscal year 2027, with annualized revenue on track for over $1 billion in fiscal year 2028.
• Custom silicon -- Revenue on track to grow over 20% in fiscal year 2027, anticipated to more than double in fiscal year 2028, driven by both new and existing customer programs.
• Communications and other markets -- $585 million revenue, up 3% sequentially and 29% year over year; second quarter expected to decline mid-single digits sequentially, but grow high single digits year over year.
• Cash prepayments -- Forecasted $1 billion in supply-chain prepayments during fiscal year 2027 to secure production capacity; funding from internally generated cash flow and balance sheet resources.
• NVIDIA partnership -- Collaboration includes optics partnership, NVLink fusion integration, and AI RAN AI-wireless infrastructure enablement, expected to enhance connectivity with NVIDIA (NASDAQ: NVDA)’s ecosystem.
• Second quarter non-GAAP EPS guidance -- Range of $0.88 to $0.98; second quarter GAAP EPS guidance -- Range of $0.32 to $0.42 per share.
• Fiscal year 2028 non-GAAP operating expenses -- Expected to grow mid-to-high teens percentage, much less than projected 45% revenue growth, supporting operating leverage.
• Target operating margin model -- Anticipated to reach the upper end of the 38%-40% range as fiscal year 2028 progresses.
• Share dilution -- Weighted average shares rising in the second quarter primarily due to Celestial AI and XConn acquisitions, and NVIDIA investment.

Summary

Marvell Technology (NASDAQ:MRVL) significantly increased revenue and profit expectations for both the current and upcoming fiscal years, driven primarily by demand for its data center products—especially interconnect, switching, and custom silicon solutions. Management highlighted an expanded partnership with NVIDIA (NASDAQ: NVDA) that directly integrates Marvell Technology’s custom silicon and optical networking into NVIDIA’s AI ecosystem, covering optics, NVLink fusion, and AI RAN for next-generation infrastructure. Operationally, the company is executing aggressive supply-chain measures, including $1 billion in prepayments, to secure the capacity required for unprecedented demand visibility and sustained growth. Marvell Technology closed strategic acquisitions—Polariton for plasmonic silicon photonics and Celestial AI for photonic fabric technology—to expand its technology roadmap and maintain device leadership as data rates and system complexity increase. Externally, record-breaking bookings and strong customer demand signaled confidence in Marvell Technology’s multiyear growth cycle and its ability to deliver capital returns and operating leverage despite rapid scale up and M&A-driven integration costs.

• Marvell Technology’s updated fiscal year 2028 revenue guidance of $16.5 billion is $1.5 billion higher than its prior outlook shared last quarter, reflecting rapid ramp across multiple product segments.
• The interconnect business is now forecasted to grow more than 70% in fiscal year 2027; this is a sharp upward revision from earlier expectations of 50% growth.
• Management confirmed line of sight to over $10 billion in annual custom silicon revenue for fiscal year 2029, citing a broader pipeline of design wins and customer programs already under contract.
• Expanded partnership with NVIDIA will embed Marvell Technology solutions into next-generation AI data centers, enabling direct interface with NVLink systems and extending reach into telecommunications via AI RAN.
• Plasmonic silicon photonics from the Polariton acquisition delivers high bandwidth optical connectivity exceeding 1 terahertz, which is critical for forthcoming data center speed requirements.
• Prepayment commitments to suppliers and long-term demand forecasts are enabling Marvell Technology to expand production when broader industry supply remains constrained.
• Operating expenses are slated to increase at a slower rate than revenue into fiscal year 2028, positioning Marvell Technology to achieve the higher end of its operating margin targets despite aggressive investment in AI infrastructure.
• Marvell Technology has achieved multiple new design wins across its XPU and memory attach programs, with management stating, "every sort of program we looked at a year ago is larger when we look a year later."

Industry glossary

• XPU: A general term used by Marvell Technology for processor architectures beyond conventional CPUs or GPUs, often customized for specific workloads in AI or networking.
• PAM4: Four-level pulse amplitude modulation, an optical and electrical signaling technique used in high-speed data center interconnects to achieve greater bandwidth.
• DCI: Data Center Interconnect—products and technologies enabling high-bandwidth connectivity between physically separate data centers.
• CoherentLight: Marvell Technology's branded portfolio of high-speed, low-power silicon photonics products targeting long-reach optical data center links.
• CXL: Compute Express Link—an open industry standard interconnect protocol enabling high-speed, low-latency communication between CPUs, memory expanders, and accelerators.
• TAM: Total Addressable Market; industry term for the overall revenue opportunity available for a product or solution.
• SerDes: Serializer/Deserializer technology used to facilitate high-speed data transfer between ASICs and chips in networking and data center hardware.
• NPO/CPO: Near-package Optics (NPO) and Co-packaged Optics (CPO) are integration approaches for embedding photonics close to or within processor or switch packages, enabling higher bandwidth and lower power consumption.
• MRM/EAM/MZM: Types of modulators for photonic components — Micro-Ring Modulator, Electro-Absorption Modulator, Mach-Zehnder Modulator.
• NIC: Network Interface Card; a hardware component allowing computers or servers to connect to a network.
• AI RAN: Integration of Artificial Intelligence processing into Radio Access Networks, enabling AI and wireless telecom workloads to run on unified hardware.

Full Conference Call Transcript

Matthew J. Murphy: Yes. Thanks Ashish and good afternoon everyone. For the first quarter of fiscal 27 Marvell delivered record revenue of $2.418 billion reflecting 9% sequential and 28% year over year growth. Revenue exceeded the midpoint of guidance and as a result non-GAAP earnings per share of $0.80 exceeded the midpoint of guidance by $0.01 We are seeing strong demand and exceptional bookings across our entire data center portfolio. This robust demand is reflected in our guidance for the second quarter of 27, which we expect total company revenue to grow 12% sequentially and 35% year over year at the midpoint. $2.7 billion.

On our earnings call last quarter, we indicated that beginning in Q2, we expected quarterly revenue growth throughout fiscal 27 to trend in the high single digit range sequentially on a percentage basis, Q4 revenue exiting the fiscal year at approximately $3 billion We are now guiding Q2 revenue to grow double digits sequentially, and we expect Q3 and Q4 revenue to also grow by at least 10% sequentially, as a result, we now expect $3 billion in quarterly revenue in Q3. Reaching approximately 50% by Q4.

As a result, we now expect overall Marvell revenue fiscal 27 to grow approximately 40% year over year to nearly $11.5 billion The increase in our revenue outlook continues to be driven by our data center which we now expect to grow approximately 50% this fiscal year. Notably, we expect our interconnect business to grow more than 70% year over year, well above our prior expectation of 50% growth. I will provide additional color on our interconnect business later in today's call. For our communications and other end markets, we continue to expect revenue growth of approximately 10% in fiscal 27.

Now looking ahead to fiscal 28, we are planning for the rate of cloud CapEx growth to moderate into the 30%-plus range, we expect strong data center revenue growth for Marvell to continue. We expect our interconnect business to continue to outpace cloud CapEx growth reflecting strong 1.6T demand from scale out networking and more meaningful contributions from scale-up, scale-across networking. Now expect our custom business to more than double year over year in fiscal 2 thousand 28 higher than our prior outlook and expect our Ethernet switching business to continue ramping As a result we expect data center revenue in fiscal 28 to grow approximately 55% year over year accelerating from fiscal 27's projected growth rate.

For our communications end market, we continue to expect low single digit percentage revenue growth in fiscal 28, consistent with our prior view. Aggregate, we now expect overall company revenue to grow approximately 45% in fiscal 28. Off a higher fiscal 27 base. As a result, we now expect Marvell's fiscal 28 revenue to reach 16.5 billion roughly $1.5 billion higher than the outlook we provided on our earnings call last quarter. This outlook is supported by demand trends we are seeing today and by programs already in execution. Our investments in securing supply are paying off, enabling us to scale the business every quarter.

As we move through the fiscal year, we expect to remain closely aligned with our customers as they continue investing aggressively in AI infrastructure. Now let me turn to the expanded partnership we announced with NVIDIA, which reflects the growing importance of high speed connectivity, optical interconnect, and accelerated infrastructure in scaling AI. The collaboration connects Marvell's custom silicon and optical networking capabilities directly into the massive NVIDIA ecosystem to help build scalable, highly efficient AI data centers and telecommunications networks. There are 3 core pillars of this exciting announcement. First is our optics partnership: Marvell has long been a key supplier of DSPs, TIAs, drivers. We are now extending this relationship to collaborate on silicon photonics technology.

This is expected to be a key enabler of scale up networking. Second, NVLink fusion integration: This allows Marvell to build custom chips and networking semiconductors that can seamlessly interface with NVIDIA infrastructure. It increases choice for hyperscalers who will now have complete flexibility to mix and match custom and merchant capabilities across their platforms. With Marvell uniquely providing the bridge between these 2 architectures. We expect this to create new market opportunities for both Marvell and NVIDIA going forward. Third is AI RAN: Marvell will enhance its existing OCTEON base station to work directly with NVIDIA GPUs. Integrating AI with wireless infrastructure on a single software defined computing platform.

This will enable telecommunications operators to run both 5G and 6G radio workloads and high performance AI applications concurrently on the same hardware. Since the announcement, both teams are off to the races. And we are working closely together to realize the benefits of this collaboration. We deeply appreciate the partnership and the investment from NVIDIA. Okay, let me provide more color on our current business, beginning with data center. In our data center end market, we delivered record first quarter revenue of $1.8 billion representing 11% sequential growth and 27% year over year growth. We achieved sequential and year over year growth across multiple products, including optical interconnect, custom silicon and switching.

Looking ahead to the second quarter, we expect data center revenue growth to accelerate into the mid to high teens sequentially on a percentage basis and into the mid-40-percent range year over year. Our networking products, including interconnect and switching, are driving strong revenue growth as networking becomes increasingly critical with each new generation of AI infrastructure. Now in the early stages of generative AI, the primary focus was on addressing compute and memory bottlenecks. As more complex architectures such as reasoning models, and mixtures of experts have begun to deploy, the role of networking has become significantly more important. And this is a key driver of the increased demand we are seeing today for our scale out networking products.

Now what is completely in front of us is the massive expansion expected in scale up networks as these domains become significantly larger. Requiring high radix, low latency switches, as well as high bandwidth optical interconnects. In addition, these new AI models are also driving innovation in memory architecture which we expect will benefit our XPU attach business. We expect the emergence of Agentic AI to further supercharge demand for our scale out, scale up and XPU attach businesses. In Agentic AI, a single user request may require agents to query AI models many times, rather than just once as in traditional 1 shot inferencing.

Queries may also be routed to different parts of the AI cluster to complete a single task. This substantially increases the volume of data traffic that must be transmitted and switched with very low latency across longer reaches, as well as the amount of memory required. Genetic AI is also expected to drive a drive a significant increase in the number of CPUs deployed in AI infrastructure. More CPUs require more NICs, PCIe switches, and retimers, as well as greater bandwidth and CPU centric front end networks. As a result, we believe Agentic AI can provide another significant tailwind for our interconnect switching and XPU attached franchises. it is increasingly clear that optics is the future of data center connectivity.

We continue to invest aggressively in our technology platform to extend our leadership in this rapidly expanding market. Our latest addition is the acquisition of Polariton, a developer of high speed, low power plasmonic-based silicon photonics devices. Plasmonics offer meaningful advantages over traditional silicon photonics by enabling substantially higher modulator bandwidth. Which is critical for support of faster optical transmission speeds. Polariton has already demonstrated plasmonic modulator bandwidth exceeding 1 terahertz. Up to 10 times higher than current silicon photonics and thin film lithium niobate-based solutions. We are excited to incorporate this breakthrough technology into our DCI and CoherentLight road maps extending our technology platform to 3.2T and beyond.

Let me now pivot back to the near term and discuss trends we are seeing across both our established data center businesses and our newer growth initiatives. I will organize the discussion into 3 categories. Interconnect, switching, and custom. I will start with interconnect, which represents the largest portion of our data center business. Demand for our interconnect products continues to accelerate and as a result, we have increased our fiscal 27 revenue growth expectations for this business to more than 70% year over year. Interconnect is also a major driver of the higher fiscal 28 company revenue outlook we provided today.

We are benefiting from our leadership position across the industry's broadest portfolio, high speed connectivity solutions spanning scale-out, scale-across, and scale up networking. Within our scale out PAM franchise, demand continues to strengthen for our 800 gig products, while our 200-gig-per-lane 1.6T solutions are ramping quickly this fiscal year following their production launch in the second half of fiscal 26. We expect 1.6T revenue to take another substantial step up in fiscal 28. We continue to benefit from the first to market cadence we have maintained across successive PAM 4 generations. We also expect to maintain leadership into the next PAM4 generation with 400-gig-per-lane technology, which we demonstrated first at the optical fiber conference in April 2025.

In addition to our DSP franchise, we have also built a formidable position in broadband, analog, TIAs and drivers. This business is scaling rapidly and we expect quarterly revenue from TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters. To support campus wide data center architectures requiring longer reach than traditional PAM solutions, we were the first to introduce CoherentLight products to the market. These solutions are optimized for applications spanning 2 to 20 kilometers in an extremely low power envelope as compared with traditional coherent DSPs. Over time, as speeds continue to rise, we expect CoherentLight to penetrate deeper inside data centers. Complementing PAM based solutions for shorter reach applications.

We have already begun shipping the first generation of our CoherentLight 200-gig-per-lane 1.6T products, and we are now introducing next generation CoherentLight products featuring integrated MACsec security as well as higher speed capabilities. Turning to DCI. This market is undergoing a major transition driven by the emergence of scale across networks. Which we believe will significantly expand the opportunity for pluggable DCI modules over the next several years. Marvell pioneered the pluggable DCI market, where the original use case was driven by hyperscalers replacing public WAN connections for intersite connectivity using pluggable modules. With traffic between data centers originating primarily from traditional front end networks.

This has become a highly successful business for Marvell, and today, we ship DCI solutions to all 5 major US hyperscalers. What is now changing is the push to build significantly larger AI clusters, which increasingly must span multiple data centers due to power and space constraints. In these architectures, the back end AI network must also extend between the data centers. Creating the scale across use case where massive amounts of data move continuously between XBUs during AI workload processing. Aggregate bandwidth requirements for scale across networks are projected to be more than 10x higher than those of current front end DCI networks.

As a result, industry forecasts project the pluggable DCI TAM to grow significantly, driven by rapidly increasing speeds and rising feature complexity including integrated MACsec security. While traditional DCI networks today primarily deploy 400 gig solutions, and are now transitioning to 800 gig, Scale across architectures are expected to rapidly adopt 1.6T connectivity. Marvell is exceptionally well positioned to lead this transition with the industry's first secure 1.6T ZR and ZR+ DCI modules. Powered by our new 2-nanometer coherent DSP announced earlier this year. These modules are expected to begin sampling this year.

This positions Marvell to extend our technology leadership into the emerging scale across market supported by our proven expertise in high volume manufacturing of these highly specialized and complex modules. Our leadership position here is translating into strong revenue momentum for our DCI module business. Giving us line of sight to a $1 billion annualized revenue during fiscal 28. This would represent approximately double the revenue we achieved in fiscal 26 when the business generated roughly $500 million in revenue. As scale-across deployments become a larger portion of the market, we expect growth in our DCI business to accelerate further. Let me now transition to scale up optics.

Scale up interconnect represents 1 of the newest and most strategically important opportunities emerging in AI infrastructure. Marvell is uniquely positioned to enable both NPO and CPO implementations, with a broad silicon photonics platform spanning all 3 mainstream modulator technologies. Including MZM, EAM, and MRM, Fully supported by our market leading broadband analog TIAs and drivers. We are also investing in emerging approaches such as micro LED, and micro-VCSEL-based solutions. Marvell has already shipped more than 1 million DCI modules powered by our silicon photonics over the past decade. Across 4 generations of silicon photonics deployments, we have accumulated more than 15 billion hours of field data, and demonstrated world-class reliability.

We have leveraged this experience in developing our silicon photonics-based light engines. We are deeply engaged with multiple tier 1 customers with our third-generation 6.4T Light Engine for NPO and CPO implementations. Our acquisition of Celestial AI added photonic fabric technology including EAM modulators in the industry's leading low power analog SerDes, the solution has already been selected by a tier 1 hyperscaler for its next generation of XPU scale up networks. A full strength of Marvell's engineering and operations organization is focused on bringing Celestial's first generation chiplet into high volume manufacturing. We are also making significant progress with MRM based scale up interconnect solutions. We completed our MRM device demonstrations last year and continue -- I am sorry.

And continue to collaborate closely with TSC on its CO-OP platform. We believe scale up interconnect represents a massive new TAM that will likely be served by multiple photonic technologies and architectures, and we are investing aggressively to establish leadership across all of them. We are seeing market adoption accelerate from multiple CPO and NPO engagements, And as a result, we expect our scale up optics business to ramp significantly next fiscal year. With revenue forecasted to more than double our prior outlook of approximately a $150 million which was based at that time solely on Celestial AI. Turning to data center switching.

We continue to benefit from sustained demand for our 12.8 t and strong ramp of our 5th generation 51.2T switches for scale out networking. We are seeing strong engagement for both existing and new customers for our 51.2t platform. as well as our new 100T platform, which we believe delivers industry leading power efficiency and low latency. Attributes that are increasingly critical for AI infrastructure. Our engineering teams are already executing on the roadmap towards 200T Ethernet switching and beyond. With this momentum, we expect scale out switch revenue in fiscal 27 to exceed $600 million, doubling from fiscal 2026, and we currently see the business tracking to more than $1 billion in annualized revenue in fiscal 2028.

Scale up switching is an emerging market where we have significantly increased our investment, both organically and through the acquisition of XConn. Which substantially expanded our team and capabilities. While some customers are currently deploying PCIe switches for their current generation of scale up networking, the RAIDEX and bandwidth limitations of PCIe are expected to drive a rapid transition towards purpose built large radix high bandwidth UAlink, eSUN, and NVLink solutions. Marvell is uniquely positioned to support all of these scale up protocols through our internally developed UAlink and eSUN switches, as well as our expanded partnership with NVIDIA around NVLink fusion. We currently have multiple engagements with tier 1 customers for our scale up switch portfolio.

Given the size of the scale up TAM, each of these engagements represents a multibillion dollar lifetime revenue opportunity. We believe we are exceptionally well positioned in this market leveraging decades of extensive experience developing large, reticle-sized switch silicon, as well as our in house best in class high performance SerDes technology. Now let me touch on a few additional growth opportunities in data center. In the AEC market, we are seeing strong interest in our golden cable program. We have already secured design wins with 3 tier 1 US hyperscalers along with several other customers. We are also seeing strong traction for our retimer products.

Both ACs and retimers are now ramping, and we expect combined revenue to more than double year over year in fiscal 27, and continue growing rapidly in fiscal 28. The acquisition of XConn also advanced PCIe and CXL switch solutions to our portfolio. We are seeing strong interest in our PCIe Gen 6 and CXL 3.1 solutions. Marvell is well positioned in both of these markets to provide customers with complete end to end solutions and reference designs consisting of our PCIe switches paired with retimers, as well as our CXL switches paired with our memory expanders. Okay. Turning now to our custom business.

Custom revenue remains on track to grow more than 20% year over year in fiscal 27, led by our flagship XPU program, which we expect to drive multiple years of growth across multiple generations. Several XPU attached programs are also ramping in fiscal 27, including our CXL and NIC products. Looking ahead to fiscal 28, we now expect custom revenue to more than double year over year, which is higher than our prior outlook. The growth is expected to be driven by 3 primary factors, including, first, continued growth from our existing custom programs, including our flagship XPU, second, over 10 XPU-attached programs reaching higher production volumes, with demand continuing to exceed prior forecasts.

Particularly in NIC and CXL memory attach use cases driven by increasing inference and KB caching requirements. And third, the ramp of our new tier 1 XPU program into volume production. This program continues to progress very well through development, and we already have firm requirements in place for all of next fiscal year. Since last quarter, we have won several new designs as customers continue to expand their adoption of custom silicon. We expect these new sockets to begin contributing incremental revenue following their typical development cycle of approximately 2 years. The level of custom engagement with key customers remains unprecedented. And we continue to be deeply involved in a broad set of significant additional opportunities.

We remain confident in achieving our target model for our custom business to deliver on over $10 billion in revenue in fiscal 29. Turning to our communications and other end market. We delivered first quarter revenue of $585 million, up 3% sequentially and 29% year over year. For the second quarter, we expect revenue to decline in the mid single digit range sequentially on a percentage basis, while growing in the high single digit range year over year on a percentage basis. The communications and other end market has now largely recovered from inventory corrections at our customers.

Going forward, we expect revenue in this end market to broadly reflect the underlying trends in our enterprise networking carrier and consumer businesses. Our business continues to accelerate. In summary, we have increased our revenue outlook multiple times over the past several quarters. Today, we are again raising our outlook, increasing our fiscal 27 revenue forecast by more than $5 billion and our fiscal 28 outlook by approximately $1.5 billion versus the projections we provided last quarter. Our data center revenue grew 46% year-over-year in fiscal 26, and we are now projecting growth to accelerate to approximately 50% in fiscal 27 and accelerate again to 55% in fiscal 28.

Our customers continue to single signal robust demand not only for this year, but for the next several years. Our results and outlook reinforce our confidence that Marvell is in strong multiyear growth cycle with substantial runway ahead. Now today, sit here in a unique position to simultaneously, 1, drive incredibly strong top line growth, 2, increase R&D investment strategically in the highest growth AI opportunities while continuing to drive operating leverage. 3, make necessary capacity investments to fuel the next wave of growth. And 4, continue strong capital returns to shareholders. The Marvell team is firing on all cylinders with strong momentum expected to continue across the business.

We have built a well diversified company anchored by multiple large existing franchises and complemented by several emerging growth engines. I look forward to updating you on our progress as we continue this exciting journey as a key enabler of next generation AI infrastructure. With that, I will turn the call over to Willem, for more details on our recent results and outlook.

Willem A. Meintjes: Thank you, Matthew, and good afternoon, everyone. Let me start with our financial results for the first quarter of fiscal 27. Revenue was $2.418 billion, growing 28% year-over-year and 9% sequentially. Data center was our largest end market contributing 76% of total revenue. GAAP gross margin was 52.1%, non GAAP gross margin was 58.9%, Moving on to operating expenses. GAAP operating expenses were $921 million, including stock based compensation amortization of acquired intangible assets restructuring costs and acquisition related costs. Non GAAP operating expenses came in at $577 million. Our GAAP operating margin was 14%, while our non-GAAP operating margin was 35%.

For the first quarter, GAAP earnings per diluted share was $0.04 lower than our guidance reflecting the impact of purchase accounting for the Celestial AI and XConn acquisitions and the related earn out obligation. We expect this to normalize in the second quarter as reflected in our strong GAAP net income guide. We have now delivered consecutive quarters of positive GAAP net income and expect to continue to drive strong GAAP profitability going forward. Non GAAP earnings per diluted share was $0.80, above the midpoint of guidance reflecting year over year growth of 29%. Now turning to our cash flow and balance sheet.

In the first quarter, flow from operations was a record $639 million Inventory at the end of the fourth quarter was $1.4 billion, almost flat from the prior quarter. During the quarter, we repurchased $200 million of our stock through our ongoing capital return program and returned $54 million to shareholders through cash dividends in the quarter. As of the end of the first quarter, our total debt was $4.96 billion with a gross debt to EBITDA ratio of 1.44x and a net debt to EBITDA ratio of 0.32x. Turning to our guidance for the second quarter of fiscal 20 We are forecasting revenue to be in the range of $2.7 billion, plus or minus 5%.

We expect our GAAP gross margin to be between 52.1% and 53.1%. We expect our non GAAP gross margin to be between 58.25% and 59.25%. Looking forward, we anticipate that the overall level of revenue and product mix will remain key determinants of our gross margin in any given quarter. We project our GAAP operating expenses to be approximately $960 million. We anticipate our non GAAP operating expenses to be approximately $600 million in the second quarter.

We expect our GAAP other income and expense including interest on our debt to be an expense of approximately $68 million We expect our non GAAP other income and expense, including interest on our debt, to be an of approximately $35 million We expect a non GAAP tax rate of 11% We expect our basic weighted average shares outstanding to be 899 million and our diluted weighted average shares outstanding to be 915 million The increase from the prior quarter reflects the full impact of shares issued for the Celestial AI and XConn acquisitions well as the shares issued as part of the NVIDIA investment.

We anticipate GAAP earnings per diluted share in the range of $0.32 to $0.42 We expect non GAAP earnings per diluted share in the range of $0.88 to $0.98 As we look ahead, we intend to continue to invest in growing our business while driving operating leverage. For fiscal 27, we expect non GAAP operating expense of approximately $2.45 billion which includes the acquisition of Celestial AI and Excon, both of which closed in the first quarter of this fiscal year. For fiscal 28, we expect non GAAP operating expense to grow year over year approximately in the mid to high teens on a percentage basis.

This is significantly below the 45% revenue growth outlook Matthew provided in his remarks for that year. As a result, we expect to achieve the upper end of our target operating margin model of 38% to 40% as we progress through fiscal 28. Based on the diamonds we have secured in our confidence in sustained customer demand, we are aggressively locking in additional capacity to ensure our growth. We are following the same successful playbook we established during the last major supply crunch which includes sharing our long term demand outlook with key suppliers and making strategic prepayments to ensure capacity.

This approach has served us well, enabling Marvell to scale revenue significantly during a period when the broader industry has remained supply constrained. We are forecasting approximately $1 billion in prepayments during this fiscal year with the first payments beginning in the second quarter. These prepayments will be applied against future material purchases. We expect to fund these prepayments through our strong balance sheet and robust operating cash flow generation. In parallel, we plan to continue to repurchase shares to manage dilution. I am very pleased with our execution. Driving strong revenue growth and operating leverage. as well as robust cash flow generation and ongoing stock buybacks.

We are looking forward to continuing to deliver strong earnings growth to our stockholders. With that, we are ready to start our Q&A session. Operator, please open the line and announce Q&A instructions. Thank you.

Operator: Thank you. We will now be conducting a question and answer session. If you have additional questions, please rejoin the queue. At this time, we will pause momentarily to assemble our roster. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Thank you. Our first question comes from the line of Vivek Arya with Bank of America Securities. Please proceed.

Analyst (Vivek Arya): Thank you for taking my question. Matthew, towards the end of your presentation, you mentioned something along the lines of your custom XPU is on target to hit $10 billion in fiscal 29. I just wanted to make sure that we heard that correctly because that would mean that you know, fiscal 29 fiscal 28, if your XPU is, you know, a little over $4 billion and then it gets to $10 billion. So that is an increase of at least $5 billion to $6 billion year on year in sales. So I just wanted to make sure that I heard that.

And then, Matthew, at what point did you feel more comfortable talking about that large customer and the progress in this new program? Do you expect to be exclusive in this? Because they have a really large CapEx profile. So when do you think, you know, investors should start to give Marvell more credit for that new XPU program? That should start next year.

Matthew J. Murphy: Yes. Thanks, Vivek. Yes. So yes, you heard it right. And just for context, on the $10 billion-plus for fiscal 2029, the context for that is back in April 2024, we set long term targets out through calendar 28, which would be our fiscal 29 at that time, you know, we had we had identified a data center custom overall market.

Overall custom silicon market, which would generate about $8 billion in revenue for us was sort of what you--if you assume 20% of our market sizing at that time for, fiscal 29, And at the--our June 2025, We then said, basically, the TAM is bigger, so the implied, again, if we achieved our share targets, in fiscal 29, would indicate something over $10 billion. It was a $55 billion TAM. 20% on that is $11 billion. So call it in that range. And, yeah, we are still tracking to it. that is a key part of our assumption. You know, 2 years ago, it looked like a very steep hill to climb. We are clearly making progress there.

And, yeah, between our existing programs, our new ramp, and, just a plethora of XPU attached programs, all of which have sized up significantly since we won them. We definitely see line of sight to hit those targets and again, this is just updating investors along the way about how we are progressing. On your second question, program remains on track. I think we are hitting all of our milestones. We and we see for next year. You know, I think it is I stated in my prepared remarks, you know, kind of across the board on all of the custom programs we have, we are seeing indications of greater need for demand.

We had judged that 1 down, you know, pretty significantly, and, I think, as we progress through the year to answer your questions, I think we will all gain confidence in the magnitude of that ramp. But it is on track, and it is a key part of our plan for next year. But it is not the only piece. it is probably still about a third of the total growth we are expecting in our custom business next year. But, yeah, it is on a very strong trajectory, Vivek. From fiscal 27 to 2028 to 2029 and beyond. On the custom side overall. Which includes XPU and XPU attach. Thanks. Thank you.

Operator: Our next question comes from the line of Harlan Sur with JPMorgan. Please proceed.

Analyst: Matthew, with the aggressive evolution of inferencing compute workloads, this is really opened up a lot of opportunity for these XPU offload engines like an LPU processor, an SPU processor, right? that is what motivated NVIDIA, for example, to acquire that startup, Grok, right, that has this unique SRAM-based memory architecture that enabled them to design a very efficient, sort of low-latency inferencing engine called LPU. I seem to recall that the Marvell team actually full-designed the start up's first generation LPU inferencing chip we all know that Marvell has always focused on memory, in particular, SRAM-based IP, like highest density, lowest power.

In fact, think you guys bought the first industry's first 2-nanometer SRAM IP to the market last year. Is the Marvell team leveraging this differentiation? Are you seeing more interest in SRAM-based XPU offload ASICs and do you already have XPU attached design wins for SRAM-based offload architectures?

Matthew J. Murphy: Yeah. Yeah. Thanks for the question, Harlan. Yeah. So first, yeah, you definitely pay attention. We talked about this actually quite extensively. In June 2025 at our custom silicon event. We had a whole dedicated presentation on, actually on our best in class SRAM, design capability and IP. And that is it -- that is, by the way, a legacy in a history investment area that goes all the way back to the Avera acquisition. And prior to that, the team being in GlobalFoundries and IBM. So there is a long legacy there. That technology, has evolved from networking products into AI products, and you can see that trend in the market as inferencing is happening.

So continues to be a key part of our IP portfolio. For sure as we go win designs, and it is 1 of the reasons why we are winning our designs in XPU attach But it is part of the bigger strategy, really, which is I think, having the full suite of solutions, right, from advanced packaging, best-in-class in class high speed IO, and just the ability to really dive in and get the develop these solutions with our customers and very aggressive time to market time frames, leveraging our manufacturing expertise, and our capacity etcetera. So it is it is it is 1 piece of the puzzle, but it is an important piece. For sure.

And we definitely see that as a trend out there, Harlan. And, we will we will we will keep you updated. Thanks.

Operator: Thank you. Our next question comes from the line of Timothy Arcuri with UBS. Please proceed.

Analyst: Matthew, I wanted to ask about the breadth of the customer base. I know we have talked about the existing XPU you have. there is this new customer on the XPU, and then, you know, you do have some XPU attached with a third customer as well. But there is some speculation that you actually might be moving into the compute TAM, and that is by far the biggest custom compute wallet out there. So is that included in the forecast, or would that be incremental to this?

I am just I guess I am just trying to ask about the breadth of the customer base because I know you did you mentioned, you know, you mentioned about the engagements broadening. So wondering if you could talk about that. Thanks.

Matthew J. Murphy: Yeah. Well, I think, a couple of things. The first is, you know, we have said this for some time. We have had we have custom engagements across the board at all the US hyper And we have had that for some time. some XPU, some XPU, and XPU-attached, and some just XPU Attached. that is--and that is part of, you know, the AI custom event we did last summer is, you know, indicating kind of that broad pipeline of opportunities and sockets.

So everything we have laid out, which is the, you know, greater than 20% growth this year, you know, more than doubling next year, and then still having line of sight to our long term targets, that is all based on the designs we have already won and locked and even going back to really last summer. Now if some of these programs, again, the timing on them, the newer ones we have won since last summer, if you can get them done in, like, a 2-year time frame, then you might get some contribution. From that in fiscal 29, but that is not needed.

That think of that as like an insurance policy, but great if some of those hits and, you are worried about some of the existing programs not quite getting there, So when we look at the whole picture, net, we feel very comfortable with the trajectory of our custom business.

And it is not requiring anything new or an incremental And I would just say broadly across the board, our technology platform is very competitive, and we are out there competing every day for the most important sockets in the world, and again, those would contribute later, but at our 2-nanometer platform and then beyond, our road map is very compelling, and it is only strengthened since, our custom silicon event last summer. So this business is inflecting, and it is definitely on the right track. And, again, I highlighted a number of reasons why that is. You know, with Harlan's question.

But I will just tell you that what we have really seen and it is been pretty pronounced, I would say, in the last 6 months or so, is that the performance of our high speed I/O, our SerDes performance, our die to die, and our ability to integrate that very densely and in switching applications, XPU attach applications, is, the amount of activity we are seeing on demand for that, and I think people realizing that really it is us and maybe a couple of other people that can do this at the level for this level of performance integration. it is driving a whole new set of opportunities quite frankly.

So you know, again, design activities through the roof at Marvell. Across the board, but including on custom silicon.

Operator: Our next question comes from the line of Aaron Rakers with Wells Fargo. Please proceed.

Analyst: Hi, guys. This is Michael on behalf of Aaron. Thank you for the question. I think you mentioned in your script that you had a I think new, XPU or custom, I guess socket wins, could you provide any additional color on, I guess, those XPUs or XPU attach or maybe the type of accelerator or just type of chip, that would be really helpful. Thank you.

Matthew J. Murphy: Yeah. No additional details at this time. I think it is just another data point we are trying to give people that based on the 50-plus type of opportunities we outlined last June, we continue to close on those. That opportunity pipeline continues to grow in terms of sockets and dollars, by the way. I think every sort of program we looked at a year ago is larger when we look a year later. But no additional details at this time. But at the right time, we will do a more comprehensive look back and update you on our progress.

But right now, at least from the current business we have, the revenue line is definitely moving in the right direction and strong validation for the capabilities that we have. Thanks.

Operator: Thank you. Our next question comes from the line of Blayne Curtis with Jefferies. Please proceed.

Analyst (Blayne Curtis): Matthew, I wanted to ask specifically about the CXL opportunity alongside accelerators. How real is that opportunity. Is there a way to think about the content per accelerator for that? Well, yeah, it is a very real opportunity.

Matthew J. Murphy: I think 1 is we have we engaged in this business, actually, a few years back, and this was when the applications were really driven by sort of traditional server dynamics for x 86 compute, and that is obviously vectored over into AI. You know, I think we had a plan in this area, which we have talked about, you know, getting that sort of custom line item of XPU attach alone over a billion dollars in revenue in the next couple of years.

That continues to expand both because we continue to expand the customer base, which is very compelling, But, also, I think the concerns around the memory cycle we are in are driving additional adoption of CXL based design. So it is sort of no secret at this point that I think the memory architectures are endemic and critical on how people think about their next generation infrastructure And I think us coming in with these very proven solutions now for CXL are really playing in our favor. So I think it is just the trend line continues and just to continue to size up both because of the CapEx higher penetration, due to some of the memory issues.

And then just more and more of these solutions moving into inferencing. So that those are some of the trends that we are seeing, Blayne.

Operator: Thank you. Our next question comes from the line of Chris Caso with Wolfe Research. Please proceed.

Analyst (Chris Caso): Yes, thank you. Good evening. A question is about some more color on how you are addressing capacity constraints right now. You spoke about some of the prepayments And, so I mean, part of the question is, how you are managing to get that additional capacity?

And then as a follow on to that, with the guidance, the increase in guidance, is that a function of, you managing to get more capacity out of your customer, out of your supply base or is it really more of a factor of becoming more comfortable with the forecast your customers had already given you, and you know that you did not guide us to everything your customers had put in their forecast in the first place.

Matthew J. Murphy: Yes. Thanks. Hey, I will hand this 1 over to Christopher, who is been knee deep in this, but I just give a shout out to our team. Our supply chain operation has been doing an outstanding job, and our suppliers have been doing an outstanding job continuing to react to the upward changes in demand We have been very pleased with that, and we are in great shape overall to deliver on what we just talked about. But I will have Christopher give some more color on how we are going about that.

Christopher Koopmans: Sure. Thanks, Matthew. So, yeah, I think as Matthew mentioned, I have been dealing with the operation side since 2020, 2021, and I do not think we have been in an unconstrained environment since then. Everything that touches AI has been constrained basically since the beginning of this. And, ultimately, the way we have been able to manage this is by building very tight relationships with a small number of key suppliers giving them a 5 year forecast of what we need and hitting what we need each time along the way and doing what we said we were going to do.

And that goes a long way towards getting what you need when you take everything that you need as you go along. And we work very closely with all of our key customers and with our key suppliers to give them that forecast. And, yeah, there is really only a handful of companies that are driving this AI TAM build out and in order to do that, part of that is the prepayments that Willem mentioned that we are making with our suppliers to back our forecast with confidence and cash. And ultimately, that is what lets us deliver the revenue capability we have.

Operator: Thank you. Our next question comes from the line of Ross Seymore with Deutsche Bank. Please proceed.

Analyst (Ross Seymore): Hi, guys. Thanks for the question. I want to go to the interconnect side of things. Matthew, you talked about the growth rate going to, I think, over 70% this year. If I recall right, it was beginning of this year 30%, then 50% and now 70%. So it is clearly accelerating. I guess the question is, why would you think other than just conservatism that would slow to kind of closer to but still above the hyperscaler CapEx rate next year? Is that just conservatism or because everything that you rattled off before about the DCI side of things, AEC, 1.6T, the scale up, etcetera, etcetera. All sounds like those are still very, very strong tailwinds.

So I just wanted to get a little more color as to what you are thinking in fiscal 2028 for that business.

Matthew J. Murphy: Yes. I think the fact is this is where we are right now, Ross, and very encouraged to see as we progress as you mentioned, from where we were starting probably around last September, to now with the growth rate, you know, continuing to inch up as CapEx has gone up. And, also, the attach rate of our interconnect products have gone up. The new initiatives, those businesses are ramping. it is definitely-- I mean, we got a lot of success across the board here, but this has been the star of the show here. You know, look, I think when you look out to next year, I think this is where we are today.

But if you start building a bottoms up model, you can see that there is definitely a possibility for a lot of upward bias because our traditional business in DSPs, right, obviously, we talked about a big step up next year. In 1.6. that is higher content. You have DCI ramping. You have the new initiatives, things like retimers and ACs, but also you have scale up optics which you know, we are effectively calling at this point to be about $300 million which is true NPO and CPO based solutions. This is, like, the beginning of a major growth cycle for us.

So I think there is a lot of optionality, is what I would say at the moment, Ross. But, I think today, net, you look overall, $16.5 billion is where we are comfortable overall, but I think there is upward bias for sure. The trends continue. Thank you.

Operator: Next question comes from the line of Tore Svanberg with Stifel. Please proceed.

Analyst (Tore Svanberg): Yes, thank you and congrats on record quarter. Matthew, I was hoping to zoom in a little bit more on the interconnect business and specifically scale up. Obviously, a lot of that is in front of you. But there is also a lot of different dynamics there, right? Whether it is copper, optical, you know, MPO, CTO, copper, What has been surprising to you the last few months as far as what 2 or 3 products are you seeing the bigger upside from Because obviously, it is a very dynamic market. So given your new growth forecast here, there must be a few that are worth highlighting. Thank you.

Matthew J. Murphy: Yes. Well, I think the good news well, I will start at the top. The good news is as you said, you just rattled off a number of different technologies, and there is an equal number more you did not mention. We are in all of them. And I think that is 1 of the unique advantages that we bring to the table is we have the absolute broadest range of connectivity and scale up and scale out solutions for interconnect in the industry. And I think as I as the indicating to Ross, I think everything's got an upward bias to it.

The area where I think the most intense activity has sort of emerged and I think it is just it is been just a home run getting the Celestial team in here and combining them with our own very, very strong and capable optics team That combined team, we are able to go into customers now and outline full end to end solutions from x p XPU-to-switch with any type of interface and optical or copper connection between that the customer can envision and really optimize around that. And so that is why we mentioned we are seeing for next year, not just Celestial products ramping on scale up optics, but also Marvell products as well.

And I think that is an area that could bias us higher, but that is upward. Sorry. But that is in the context of us presenting a very comprehensive total system solution because in the end, especially for this first generation, you are going to want to have these solutions bookended, Tore, and you are going to want to have the XPU integrate the same photonic element as the switch side And we are able to walk in and show our switches, our ability to integrate into XPUs or build the XPU. And then all the optics in between. So it is a very, very powerful combination and I think the end to end is getting a lot of attention.

And the fact is, we have the proven technology. it is not a PowerPoint. it is not a concept. I mean, we have 15 billion hours as an example of device data on 4 generations of silicon photonics already. Have 224 gig SerDes in production. We have die to die in production. We built switches for multiple generations that are reticle-sized with high yield These are this is, like, the most complex stuff you are going to do in the semiconductor industry. And we are able to simultaneously do it all and bring it to our customers.

So if I were to point out a trend, which is kind of what you are getting at, it is that trend right now is how do we help our customers enable their scale up network for the future? And this is, like, gen 1, ground zero. there is a lot of room to go here. that is what I would say the most sort of intense discussions we are having. And we are very much investing to win here. that is why you see us in some cases betting on multiple standards or multiple technologies. We do not want to miss out And we will pivot at the right time. We will follow our customers.

We will follow the market. But today, we have a little bit of a blank sheet, and it is very refreshing to our customers because we do not just go in there with our agenda based on the 1 piece that we have. we say, 'Well, this is what we have. This is what we can offer you. We go in with here's the technology that you need, and it is real engineering. it is real proven silicon. it is real proof of concept. That we can show. So I think more to come on this 1. Thank you.

Operator: Our next question comes from the line of Serene E with RBC Capital Markets. Please proceed.

Analyst: Thank you. Matthew, I want to zoom in on the switching side. I think you talked about scale out switching doubling this year and potentially reaching 1 billion annualized run rate next year. I know it is a large market and you have a relatively small share in that market. But as we go from scale out to scale up, you mentioned 3 different I guess, you know, eSun, NVLink, and also UAlink. So it seems to me that could be even larger market, and obviously, it is all a greenfield market for you. I am just curious as to how you are thinking about that opportunity in 2028 and beyond? Thank you.

Matthew J. Murphy: Yeah. Thanks, Srini. Yeah. You are right. On the scale-out side, it is a large and established market. We are an emerging company there. I would just say, though, I think it is a huge milestone to look out to next year and have line of sight to a billion dollars of revenue here when if I go back 5 years ago when we were able to bring the Innovium team in, there was it was effectively a pre revenue company or very little with, at that time, kinda line of sight to $100 million and $150 million of revenue.

So that is gone really well if you look over the last 5 years, right, and just kind of where we are we are heading. And a lot of those assets and capabilities that we got from that are now directly being leveraged into scale up networking, particularly the obviously, on the Ethernet side on eSun. So that, in our mind, is, you know, a bigger opportunity from the standpoint that the market share is not established yet.

And that is what I was referring to earlier in response to Tore's question. there is so many important architectural discussions going on but it is not just the switch, and it really requires, you know, kind of a very broad set of capabilities and track record for customers to bet on you here And I think the stakes are higher because we do continue to see the adoption of CPO and NPO technologies being much more robust and, sticky inside the scale up networks. Which is just a lot more TAM for Marvell as well.

So you have got switch ASPs that are roughly the same, but you have got a whole new emerging market segment where nobody's quite established the leadership position there. And we think based on our set of assets and our strategy, you know, we should do really well there. That will be--all the all the numbers I have rattled off to everybody here which is a lot. I get it, but, you know, the concept is trying to give people visibility under the different pieces of Marvell that you might not think of. But on the scale up and on the switching side, that is not really in any numbers I am talking about right now.

I mean, that is not very little very little nothing in fiscal 2025, and then the year after, we will probably get some contribution, but that is never showed up at an analyst day we have done or any kind of discussion. So all in front of us, and that is all upside. And I think it can be very meaningful over time. So we will we will see. Operator, we will do 1 more question, and then, and I will give some closing remarks, and we will end the call.

Operator: Sounds good. Our last question comes from the line of Srini Pajjuri with Raymond James. Please proceed.

Analyst: Thank you very much for taking the question. Wondering if we look at the fiscal 28 outlook for the custom to double and the 3 drivers that you outlined, could you give us a little bit more color as to which of these is the biggest or how to think about the contributions between existing customer expansion, the XPU attach, and then the new tier 1? Just trying to get a sense of relative size of each. Thanks.

Matthew J. Murphy: Yeah. No. No problem. Thanks for the question. So last quarter, when we talked about it, it was, it was about a third, a third, a third in those different buckets, you know, the existing programs, XPU attach. And then in our new program. And that is it is about the same. So but what is happened is what we said it is gonna more than double. So all of those have sized up. I think across the board, I would say, all of our different custom programs, which, again, I mentioned was quite a few when you add the XPU attached in there. Every 1 of those has sized up and wants to be bigger for next year.

So it is it is a double plus, which is which is great. And I would say it is roughly the same ratio. We will know more, obviously, as we get, you know, through the year here and you know, lock the production plan for next year in our allocation, But at the moment, everything wants to be more, and we will do that. We will more than double the business from this year to next year in about the same increments in terms of growth. So thanks for the question. Operator, do you want to give some closing comments? Do you want to close the call first, then I will do it? How do you want to do it?

All right. I will just close it out once you are finished. Excellent. Okay. Thanks for your help today. All right. So thanks, everybody, for joining. I appreciate it. And appreciate the interest in the company. Marvell is in the middle of really an incredible growth period. We are seeing record demand. We are seeing record bookings. in the last few quarters. Our data center business is on fire, and we are projecting accelerating revenue growth. For this year and next year already from a strong base. I mean, basically, we were 46% data center growth last year. This year is 50, and next year is looking like 55. So it is only getting better.

Team is doing an excellent job winning new designs. So we can keep the growth engine humming for the foreseeable future. And this is a company that was put together and purpose built. And going back almost 10 years, actually, in the making, to get to this point, we have had a lot of, you know, high-profile m and a and integrated that well, but incredibly strong organic investment by Marvel engineers as well. To build really a best in class leading portfolio across the board. And this came up in some of the questions, but I will just touch on it. I mean, what really is resonating with our customers is that we have all the pieces.

We have all the pieces. We have the pieces that can help our customers architect their fully AI--their fully optimized AI infrastructure. And that could be built on Marvell end to end technology. I mean, having custom under 1 roof, high speed switching, leading-edge SerDes, in I/O, and then all the things we talked about earlier in terms of our capacity, our scale, and our ability to manufacture in yield and high volume and for our customers' ability to us to do that. So very exciting time for the company. it is, it is it is been a little roller-coaster ride over the last year. The revenue has been up and to the right.

But, you know, there is been there is been, you know, ups and downs along the way. And you know, we have a very, very dedicated and loyal and committed employee base in this company. And I wanna thank all the Marvell employees that are listening and all the engineers in this company and everybody in every function who is working your butts off every day to get to where we have gotten to Your focus and commitment is highly appreciated. So look, we are well on the way to be 1 of the big winners in this AI cycle.

We know what we are good at, and we are going to keep doing that, keep our head down, keep executing, and keep driving it forward. So we look forward to seeing all of you. I know there is a whole bunch of different investor events, bus tours, huge amount of people coming through here at Marvell. I will be in a lot of those meetings, but you will also get a chance to see Christopher and Willem. Sandeep, Ashish, and me. So with that, I want to conclude the call. Thanks, operator, and thanks, everybody, for your interest in Marvell. Take care.

Operator: Thank you. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.

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