MRVL's Carrier Infrastructure Segment Recovering: What Lies Ahead?

Marvell Technology’s MRVL carrier infrastructure end market, which accounts for broadband access systems, Ethernet switches, optical transport systems, routers and wireless radio access network systems, is on the path to recovery.

Marvell Technology’s carrier infrastructure end market is benefiting from its advanced Ethernet switch portfolio, highly integrated semiconductors with single or multi-core processors and intelligent OSI stack processing. The company’s OCTEON DPUs and processors are widely deployed in carrier networks.

The carrier infrastructure end market grew 71.4% year over year in the second quarter of fiscal 2026, reaching $130 million. This recovery is driven by normalized customer inventories and strong adoption of refreshed products migrated to advanced process nodes, ensuring long product life cycles and competitive differentiation.

Management expects its carrier infrastructure end market to grow in double digits sequentially in the third quarter, reinforcing its momentum. The recovery of Marvell Technology’s carrier infrastructure end market will cushion cyclical swings in AI spending, enhancing stability while still benefiting from secular digital infrastructure demand.

How Competitors Fare Against Marvell Technology

Marvell Technology competes with Broadcom AVGO and Qualcomm QCOM in the carrier infrastructure end market. Broadcom has a stronghold in carrier Ethernet and transport markets and is a major player in telecom optical interconnects and routing silicon space. Meanwhile, Qualcomm competes in baseband processors for carrier deployments.

Broadcom develops Ethernet switching, optical DSPs and NPUs, while Qualcomm develops 5G RAN chips and small-cell infrastructure silicon, in contrast to Marvell Technology’s large-cell RAN technology. However, the market provides ample opportunities for Qualcomm, Broadcom and Marvell Technology to support their expansion.

MRVL's Price Performance, Valuation & Estimates

Shares of MRVL have lost 32.4% year to date against the Electronics - Semiconductors industry’s growth of 33.9%.

From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.17X, lower than the industry’s average of 9.3X.

The Zacks Consensus Estimate for Marvell’s fiscal 2026 and 2027 earnings implies year-over-year growth of 77.7% and 27.73%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days.

Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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