Marvell Technology, a leading provider of semiconductor solutions, significantly exceeded analyst estimates in the third quarter of fiscal year 2025 and provided an optimistic outlook for the upcoming quarter. Revenue rose by seven percent year-over-year to $1.516 billion, surpassing the expected $1.46 billion. Adjusted earnings per share were $0.43, also exceeding consensus estimates of $0.41.

The business with data centers proved to be the main growth driver: Revenue in this segment nearly doubled compared to the previous year and increased by 25 percent compared to the second quarter to $1.1 billion. Overall, four out of five revenue segments grew sequentially, while the fifth stagnated. Despite ongoing declines in the areas of enterprise networks, carrier infrastructure, consumer products, and automotive and industrial, Marvell consistently showed healthier growth trends.

For the fourth quarter, Marvell forecasts revenue of $1.8 billion, an increase of 26 percent compared to the previous year and significantly above analyst expectations of $1.65 billion. Adjusted earnings per share are expected to be $0.59, also significantly above the expected $0.52.

The strong performance in the third quarter and our optimistic forecast for the fourth quarter mark the beginning of a new era of growth," said CEO Matt Murphy. He particularly highlighted the role of AI silicon solutions, which have now entered mass production. Demand from cloud customers is additionally contributing to growth.

Investors reacted positively to the results: Marvell Technology's stock rose by 23.05 percent on the NASDAQ on Wednesday, closing at 118.02 US dollars.