Enterprise networking and carrier infrastructure recovery accelerating sharply (30% sequential growth expected Q3, annualized run rate from $900M low to $1.7B), driven by new advanced-node product refreshes on longer product life cycles
“On a combined basis for these two end markets, our guidance for the third quarter of this fiscal year implies an annualized revenue run rate of approximately 1.7 billion, compared to the low point we saw in the first quarter of fiscal 2025 of approximately 900 million... we recently migrated these products to advanced process nodes, an investment we expect to yield benefits for many years to come, given the long product life cycles in these markets.”
Why it matters
Marvell's historically volatile enterprise networking and carrier infrastructure business is stabilizing and ramping sharply on the back of inventory normalization and advanced-node (likely 5nm or 7nm) product refreshes. This signals sustained capex from telecom operators and enterprise customers on new networking infrastructure, not just a temporary inventory rebound.
Investment implication
Foundry capacity for mature/advanced nodes (5nm, 7nm, etc.) serving telecom and enterprise customers is in higher demand than expected. This may ease pressure on leading-edge node capacity but indicates sustained diversified demand across process nodes. Telecom and enterprise IT spending on networking infrastructure is stabilizing post-downturn, supporting suppliers of switching, routing, and security chips.