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Marvell's (MRVL) Cloud Data Center Ethernet Growth Doubles
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Marvell Technology (MRVL - Free Report) recently announced that as per 650 Group's latest quarterly report, the company's year-over-year growth doubled in the cloud data center Ethernet switch port shipments, exceeding $9 billion per quarter run-rate in the fourth quarter of 2021. Also, the company's data center switch market share jumped from 6% to 10% year over year in the quarter.
Marvell's shipping of more than 3 million 400G switch ports in the fourth quarter reflected its strong growth momentum in cloud networking. Further, the company secured a record high level of 31% market share within the 50G SerDes switch segments, witnessing 104% year-over-year growth.
The growing cloud infrastructure build-out has been driving demand for low-latency and high-performance networking solutions. Marvell's Teralynx product line, added to the company's switch portfolio through the acquisition of Innovium, delivers the ultra-low latency, optimized power, programmability, and innovative telemetry essential to the cloud data center. The Teralynx switches and optical transceivers address the growing traction from cloud data customers.
Meanwhile, Marvell’s Ethernet switch and PHY business is gaining traction with new products in the enterprise market. Its refreshed switching products continue to grow with new socket wins.
The acquisition of Cavium business in 2018 has further boosted Marvell’s capabilities in the Ethernet business. It has so far helped Marvell in expanding its capabilities in the networking market and capture significant market share in the fast-growing data-center space.
In March, the company introduced Alaska A PAM4 DSP family for Active Electrical Cables, the industry’s highest performance 400G/800G AEC DSPs to address emerging 100G/lane adoption in cloud data center interconnect architectures. In the same month, Marvell announced the industry’s first 800Gbps or 8 x 100Gbps multimode platform solution that enables data center infrastructure to achieve dramatically higher speeds for short-reach optical modules and Active Optical Cable applications.
Per Global Market Insights report, the global industrial Ethernet market is expected to see more than 15% CAGR from 2021 to 2027 and reach $127 billion. This exponential growth bodes well for Marvell’s Ethernet Switches owing to the rising demand for higher network speeds for fast processing of data.
During fourth-quarter fiscal 2022, Marvell’s revenues from the data center soared 113% year over year to $574.1 million. The segment accounted for 42.7% of total quarterly revenues, highlighting that it is currently Marvell’s largest end market compared to the rest.
Zacks Rank & Key Picks
Marvell currently carries a Zacks Rank #3 (Hold). Shares of MRVL have climbed 30.7% in the past year.
The Zacks Consensus Estimate for Arista Networks' first-quarter 2022 earnings has been revised upward by 4 cents to 81 cents per share over the past 60 days. For 2022, earnings estimates have moved 4.5% north to $3.69 per share in the past 60 days.
Arista Networks' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.7%. Shares of ANET have rallied 60.9% in the past year.
The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised a penny downward to 13 cents per share over the past seven days. For 2022, Gogo's earnings estimates have moved north by 25% to 65 cents per share in the past 60 days.
Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 65%. Shares of GOGO have soared 123.4% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have fallen 0.2% in the past year.
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Marvell's (MRVL) Cloud Data Center Ethernet Growth Doubles
Marvell Technology (MRVL - Free Report) recently announced that as per 650 Group's latest quarterly report, the company's year-over-year growth doubled in the cloud data center Ethernet switch port shipments, exceeding $9 billion per quarter run-rate in the fourth quarter of 2021. Also, the company's data center switch market share jumped from 6% to 10% year over year in the quarter.
Marvell's shipping of more than 3 million 400G switch ports in the fourth quarter reflected its strong growth momentum in cloud networking. Further, the company secured a record high level of 31% market share within the 50G SerDes switch segments, witnessing 104% year-over-year growth.
The growing cloud infrastructure build-out has been driving demand for low-latency and high-performance networking solutions. Marvell's Teralynx product line, added to the company's switch portfolio through the acquisition of Innovium, delivers the ultra-low latency, optimized power, programmability, and innovative telemetry essential to the cloud data center. The Teralynx switches and optical transceivers address the growing traction from cloud data customers.
Marvell Technology, Inc. Price and Consensus
Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote
Meanwhile, Marvell’s Ethernet switch and PHY business is gaining traction with new products in the enterprise market. Its refreshed switching products continue to grow with new socket wins.
The acquisition of Cavium business in 2018 has further boosted Marvell’s capabilities in the Ethernet business. It has so far helped Marvell in expanding its capabilities in the networking market and capture significant market share in the fast-growing data-center space.
In March, the company introduced Alaska A PAM4 DSP family for Active Electrical Cables, the industry’s highest performance 400G/800G AEC DSPs to address emerging 100G/lane adoption in cloud data center interconnect architectures. In the same month, Marvell announced the industry’s first 800Gbps or 8 x 100Gbps multimode platform solution that enables data center infrastructure to achieve dramatically higher speeds for short-reach optical modules and Active Optical Cable applications.
Per Global Market Insights report, the global industrial Ethernet market is expected to see more than 15% CAGR from 2021 to 2027 and reach $127 billion. This exponential growth bodes well for Marvell’s Ethernet Switches owing to the rising demand for higher network speeds for fast processing of data.
During fourth-quarter fiscal 2022, Marvell’s revenues from the data center soared 113% year over year to $574.1 million. The segment accounted for 42.7% of total quarterly revenues, highlighting that it is currently Marvell’s largest end market compared to the rest.
Zacks Rank & Key Picks
Marvell currently carries a Zacks Rank #3 (Hold). Shares of MRVL have climbed 30.7% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Arista Networks (ANET - Free Report) and Gogo (GOGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks' first-quarter 2022 earnings has been revised upward by 4 cents to 81 cents per share over the past 60 days. For 2022, earnings estimates have moved 4.5% north to $3.69 per share in the past 60 days.
Arista Networks' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.7%. Shares of ANET have rallied 60.9% in the past year.
The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised a penny downward to 13 cents per share over the past seven days. For 2022, Gogo's earnings estimates have moved north by 25% to 65 cents per share in the past 60 days.
Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 65%. Shares of GOGO have soared 123.4% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have fallen 0.2% in the past year.