Marvell Technology, Inc. (NASDAQ:MRVL) Q4 2023 Earnings Call Transcript

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So we’re paying attention to all of it, Quinn, I would say. We’ve got a really excellent team that understands the trade-offs and understands the various architectures. But right now, we feel very confident in our approach and our solution set. And I think coupled with our switch platform, which has now also been announced, it’s really a nice combination of the assets of Marvell plus Inphi plus Innovium, all coming together in a single platform. So more to come on that. And certainly, we’re happy to debrief with you and the rest of the team at and after OFC. I think there’s going to be a lot of activity there.

Quinn Bolton: Thank you, Matt.

Operator: And our next question will come from Srini Pajjuri with Raymond James. Please go ahead.

Srini Pajjuri: Thank you. Hi, Matt. Question on your wireless business. Obviously, it’s good to see that business doing quite well. Some of your peers have reported some weakness in that market. Just curious as to what’s driving strength for you in particular? And then as you look out to the next few quarters, can you — I mean, to the extent that you have visibility, can you talk about the sustainability of that business? Because every time we see 20%, 25% growth in any semiconductor business, we do start to worry about potential inventory build. So if you can talk about what you’re seeing out there, that will be helpful. Thank you.

Matt Murphy: Sure. Yes. No, I think Srini, I think the big issue, especially with maybe some of the more larger incumbent players that have large carrier communications businesses, especially in the wireless area, they tend to be — have a combination of some legacy, let’s call it, like 4G LTE type of solutions, and then they’ve got new 5G chips that are ramping up, and then there’s some mix of the two. But as you can see with carrier spending, the bulk of it in wireless is just pretty much all going to 5G at this point. And so from a Marvell perspective, we had very little legacy before on the older standard and 5G is really where all the content gains rolled in. So that’s continued to be a nice growth driver for us as a result.

And I’d say on top of that, you’ve been around the block enough to see this as well, I mean carrier tends to be a very lumpy business. So it doesn’t really historically ever move in a very linear fashion that tends to have be a little bursty at times. And certainly, we’re happy with the growth we’re seeing, and we think that that’s — overall, this year is going to be a growth year for us in 5G. But certainly, it can be a little bit lumpy. But I would say that this is not something that overall is kind of going according to plan in terms of the designs we won, what the content we could capture would be. And finally, if you just look and we said it in the prepared remarks, last year, we crossed the $600 million mark in 5G, which was a bogey we had set several years ago.

We haven’t time bounded by the way, like it’s going to be in this exact year, this exact four quarters. We had left it a little bit open, but we’re pretty happy that really just a few years after we talked about that goal, we were able to achieve it last year. So yes, there’s some bright spots for sure, in the Marvell portfolio. 5G is one of them and obviously, automotives and other, and there’s some good things going on. We just have to work through the issues in some of the other end markets. And with that, I think, Ashish, is that our last question?

Ashish Saran: Yes, it is, Matt. If you can maybe end with some closing remarks, that would be great.

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