Marvell CEO: AI-related bookings remain exceptionally robust

YOU GOT THIS. >> ALL RIGHT. WELCOME BACK TO FAST MONEY. MARVELL, THE SEMICONDUCTOR COMPANY TAKING A LEG LOWER IN THE LAST FEW MINUTES, DOWN ABOUT 4%. THE EARNINGS CALL COMING OUT. IT'S ONGOING. CHRISTINA PARSONS IS HERE TO TAKE US INSIDE THE NUMBERS. TAKE US INSIDE THE CALL. >> OKAY. SAME MESSAGE WE'RE HEARING EVERYWHERE. WE KNOW THIS. THE AI BUILDOUT IS ACCELERATING, NOT COOLING OFF STOCK STILL FALLING ACTUALLY DOWN 6%. NOW, THE GOOD CEO, MATT MURPHY, RAISED THE COMPANY'S REVENUE TARGET FOR NEXT YEAR TO ROUGHLY 18 BILLION. YOU ACTUALLY SAW THE STOCK TURN AROUND AFTER HOURS WHEN HE SAID THAT ON THE CALL, AND TO ROUGHLY 50% GROWTH NEXT YEAR. THE ENGINE IS THE DATA CENTER. AGAIN, THIS COMPANY MAKES CUSTOM CHIPS, ALSO DOES NETWORKING. MURPHY SAYS THAT THE BUSINESS IS NOW GROWING MORE THAN 60%, DRIVEN BY THE OPTICAL PARTS THAT CONNECT AI SERVERS AND BY CUSTOM CHIPS, WHICH HE EXPECTS TO MORE THAN DOUBLE. WHY IS THE STOCK FALLING, THOUGH? I GOT ASKED THAT FROM A PRODUCER. I KNOW IT'S VERY DRAMATIC, BUT. >> WHY DID YOU JUST SING THAT? >> I DON'T KNOW, IT'S BEEN A LONG DAY. IT COMES BACK TO THAT BIG WARREN DEAL WITH GOOGLE FROM LAST WEEK, THE ONE WALL STREET TREATED AS UPSIDE ON TOP OF EVERYTHING ELSE ON THE CALL, THE CEO SAID THE REVENUE FROM THAT DEAL FOR NEXT YEAR IS ALREADY BAKED INTO MARVELL'S NUMBERS. IT'S NOT EXACTLY EXTRA. THE BIGGER PAYOFF, HE SAYS, COMES THE YEAR AFTER, AND THAT'S WHAT COOLED THINGS OFF WALL STREET, HEARD ALREADY INCLUDED, AND SOME OF THE EXCITEMENT AROUND THE DEAL CAME RIGHT BACK OUT OF THE STOCK. THE SELL OFF ALSO A CASE, AS WE'VE SEEN WITH A LOT OF THESE NAMES OF HIGH EXPECTATIONS, IT WAS VERY OWNED OR I SHOULD SAY IT'S RUN UP, WHAT, 184% YEAR TO DATE INTO THE PRINT TODAY, INTO THE CLOSE, ALMOST 30% JUST IN THE PAST MONTH. DON'T FORGET, CEO NVIDIA ALSO CALLED IT A FUTURE $1 TRILLION COMPANY. WE'LL SEE HOW LONG THAT TAKES. >> BUT WHY? I MEAN, MAYBE YOU CAN'T ANSWER THIS. WHY? WHY WOULD JENSEN WONG WANT TO CALL ANOTHER COMPANY $1 TRILLION COMPANY? LIKE, I KNOW THERE ARE PARTNERS, I GUESS, BUT LIKE. >> HE'S HYPING UP ALL OF THE SUPPLIERS AND STUFF, KEEPING THE GOOD RELATIONSHIP. HE DID THAT WITH THE QUANTUM NAMES SEVERAL YEARS BACK AT GTC, TALKS ABOUT NEBULAS. HE TALKS ABOUT DELL. HE DOES THAT ALL. >> THE TIME. YEAH, BUT YOU JUST DON'T HEAR OTHER COMPANIES EVER TALK ABOUT OTHER COMPANIES LIKE THAT. >> SUCH A SUCCESSFUL CEO. >> WELL, I GUESS I'M JUST CURIOUS. YOU JUST DON'T HEAR IT, DO YOU? DO YOU HEAR THIS GUY? >> YOU DON'T. >> IT'S INTERESTING. YOU'RE CHEVRON BEING LIKE, WELL, EXXON'S A ZILLION DOLLAR COMPANY. THEY'RE FANTASTIC. WELL, THERE'S MUCH BETTER. >> THAN HAPPENED IN THE TECH WORLD. IT'S VERY DIFFERENT. THEY ALL WORK TOGETHER. AND THEN THEY ALSO ALL ARE COMPETING WITH. >> THE COMPETITION FRENEMIES. >> DID YOU JUST MAKE THAT UP? COMPETITION? NO, NO, THAT'S. >> A THING. >> WELL, I MEAN, IT GOES BACK TO THAT DIAGRAM THAT WE'VE SEEN ON TWITTER NOW FOR THE LAST YEAR OR SO. YOU KNOW THAT DIAGRAM WHICH PUTS, AGAIN, EVERYTHING IN THE MIDDLE BETWEEN OPEN AI AND NVIDIA AND THE CIRCULAR MOTION PICTURE OF ALL THESE DIFFERENT THINGS. SO AS CHRISTINA JUST CORRECTLY SAID, IT'S IN HIS BEST INTEREST FOR ALL THESE COMPANIES TO DO. WELL, IT SEEMS LIKE. >> TIM SEYMOUR, YOUR TAKE ON ON MARVELL. >> I THINK THE YOU KNOW, WHERE THEY SIT ALSO IN BETWEEN THE CHIP MAKERS AND THE HYPERSCALERS AND CERTAINLY NETWORKING AND DATA CENTER ARE HOT AREAS, AND THEY TEND TO BE MORE ON THE PICKS AND THE SHOVELS THAN, THAN THE END. I MEAN, YES, IT'S IT'S PART OF THE ROTATION WE'VE SEEN. I JUST WE DON'T KNOW WHAT THE MULTIPLE SHOULD BE ON THIS NAME. WE KNOW WHAT IT LOOKS LIKE IN THE LAST TRAILING MONTH. WE KNOW WHAT THE GUIDANCE IS GOING FORWARD. THAT GUIDE WAS FANTASTIC. IT'S NOT A NAME I OWN. IT'S NOT A NAME THAT I FEEL I NEED TO OWN. >> WHY NOT? >> I JUST DON'T INVEST IN THAT PART OF THE TREE. I MEAN, IT'S, YOU KNOW, TO ME, I'D RATHER OWN NVIDIA HERE AT A MUCH MORE ATTRACTIVE VALUATION. >> I AGREE WITH TIM. I MEAN IF YOU'RE LOOKING AT WHERE NVIDIA IS TRADING GIVEN THAT GUIDANCE. AND AGAIN YOU KNOW IT'S ONE THING TO KIND OF START TO DISCOUNT AND SEE THE DECELERATION. I'VE BEEN SAYING THIS FOR A WHILE. BUT THIS IS A COMPANY NOW THAT KEEPS BEATING AND THEN RAISING. YOU KNOW, WHEN YOU CONSIDER WHERE 2027 CALENDAR YEAR WAS FOR ESTIMATES FOR, YOU KNOW, EPS AND SALES, I MEAN, THEY'RE JUST RIGHT NOW, IT'S LIKE 70% OR SOMETHING LIKE THAT. THE ONE THING I'LL JUST SAY ABOUT MARVELL AND I'LL SAY ABOUT JENSEN AND, YOU KNOW, THE INVESTMENT THEY'RE MAKING, YOU KNOW, THEY HAVE THEIR THREE TOP CUSTOMERS, BOTH OF THEM, IT'S MICROSOFT, IT'S GOOGLE, AND IT'S AMAZON. LIKE THEY'RE NVIDIA'S THREE TOP CUSTOMERS AND THEY'RE MARVELOUS THREE TOP CUSTOMERS. AND I THINK WHAT IT SAYS IS THAT, YOU KNOW, JENSEN DOESN'T CARE. HE'S JUST GOING TO KEEP THROWING MONEY IN AND AROUND. WHAT DID WE START TO SHOW UP. HE'S GOING TO BUY HUGGING FACE. HE'S GOING TO BUY POOLSIDE. HE'S GOING TO DO ALL THIS STUFF. IT DOESN'T MATTER. YOU'RE JUST CREATING. >> START TONIGHT'S SHOW WITH THAT. OH. MIKE. >> THAT WAS. >> AT. >> THE END. THAT WAS MIKE SANTOLI WITH RUDY. >> LAURA MARTIN, THE GREAT NEEDHAM ANALYST WHO'S BEEN ON THE SHOW MANY TIMES ON THIS NETWORK MANY TIMES. SUPER SMART. YOU KNOW WHAT SHE SAID, CHRISTINA? ONE IN EVERY FOUR HYPERSCALER INVESTMENT DOLLARS IS GOING TO NVIDIA, ONE IN EVERY FOUR. THAT'S INCREDIBLE. >> SO I GUESS WE'VE COME FULL CIRCLE AS TO WHY HE CAN SAY THIS. HE CAN SPEAK POSITIVELY ABOUT WHOEVER BECAUSE THE MONEY KEEPS GOING BACK TO HIM. FOR THOSE WONDERING ABOUT MARVELL THOUGH, ANOTHER BIG CATALYST WOULD BE OCTOBER 6TH, THEIR INVESTOR DAY ON THE CALL RIGHT NOW, HE'S MENTIONED IT MANY TIMES, THEIR LONG TERM