EPS (UBS, diluted) (USD)

Networking Accelerating, ASlC Ramp On Track; Against a high dose of skepticism, MRVL beat and offered out-year guidance that was better than Street expectations. The ASIC business - which tends to command most of the investor focus (and skepticism)- is very much on track and expected to double next RIC: MRVL.O BBG: MRVL US year, while MRVL's strong position at 1.6T is driving additional growth on the interconnect side. Fundamentally, we think the interconnect business is very much on track to materially outgrow hyperscaler capex and the ASIC business is maybe not great, but fine. We are raising our C2027 EPS to ~$5.41 from $4.99 prior, but maintain our $120 PT as peer multiples have compressed to ~23x from ~24x. Ultimately, we expect Jan Q revenue of $2.2B, gross margin of 59%, and EPS of $0.80 were all largelyP/BV (01/27E) revenue of $1,651MM and Communications/Other of $567MM were also in-line. · Revenue guidance of $2.40B at the midpoint came in above UBSe and Street estimates, as Data Center revenues are expected to grow ~10% Q/Q, to ~$1.82B guidance of $0.79 at the midpoint exceeded UBSe/Street of $0.73/$0.74. commentary on Q/Q growth trends suggesting FQ4:27 run rate of ~$3B/Q. In Y) and Custom ASIC to grow >20% Y/Y (vs previous expectations of ~20% Y/Y). Data center switch revenue is expected to be above $600MM for FY27, ahead of previous expectations for $500MM on higher 51.2T demand. In FY28 DC revenue should grow ~50% YY, while Comms & Other should grow LSD% Y/Y. In particular, adding up to total company revenue of $14-$15B or nearly 40% Y/Y. We expect a stronger ramp in XPUs to result in moderation of GM (from ~58% to ~57%). Finally, this will result in above $4.99 of earnings power - EV/EBITDA (UBS core) x P/E (UBS, diluted) x This report has been prepared by UBS Securities LLC. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES, INCLUDING INFORMATION ON THE QUANTITATIVE RESEARCH REVIEW PUBLISHED BY UBS, BEGIN ON PAGE 16. UBS doeS and seeKS to do o pouon e ay rei wy au peun aeme aa pinous sosaus sinsan e st 'sodau yeasan shi us paaon sanuedo urm ssauisna interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their