According to media reports, American network communications and optical communications giant Marvell recently issued a notice to customers in response to the surge in demand for AI, announcing that it will increase prices for its entire product line starting from January 1 next year. Analysts believe that this increase is regarded as the beginning of price increases in the optical communications field, and may confirm Nvidia CEO Huang Jenxun's previous view that "market demand is extremely crazy."
Marvell plays an important role in the field of optical communications, especially in optical communications chips and solutions. Marvell is one of the world's leading semiconductor and network communications technology providers. Its products cover data centers, enterprise networks, 5G, telecommunications and other fields.
Marvell's performance benefited from rising demand for data center-related AI such as ASICs (application special ICs) and silicon photonics. The industry believes that the price increase announced this time, in addition to seizing business opportunities and continuing to invest in the research and development of cutting-edge and innovative products, also reflects the current surge in market demand.
According to reports, according to price increase notices circulated in the industry, the letter signed by Dean Jarnac, senior vice president of global sales at Marvell, mentioned that due to the sharp increase in global demand for accelerated computing and AI, the entire semiconductor supply chain is making unprecedented investments. Expand production capacity and diversify production base. Marvell is no exception and is continuing to increase investment in innovation to provide customers with advanced products and technologies.
Jarnac pointed out in the letter that in order to cope with the expanding investment demand, Marvell will adjust the prices of all products starting in January next year and promises to control the increase as much as possible to minimize the impact on customers. He also called on customers to place orders based on lead times and provide the company with accurate demand forecasts.
Marvell's strong financial performance last quarter was mainly due to the surge in AI demand, which drove significant growth in its data center business. In particular, its optical communication products such as 800G PAM and 400ZR data center interconnect (DCI) became key drivers of growth. This force has driven data center revenue to grow by more than 90% year-on-year. According to Marvell's second fiscal quarter financial report, the company achieved net revenue of US$1.2729 billion that exceeded the midpoint of guidance and expects all of its end markets to grow in the following fiscal quarter. The midpoint of comprehensive revenue will be quarter-on-quarter. An increase of 14%.
Marvell CEO Matt Murphy previously revealed that the data center business will continue to accelerate growth, and the enterprise network and telecommunications terminal markets are also expected to return to the growth track, driving the recovery of the overall business.
Our electro-optical products have achieved strong growth, and custom AI projects have begun to accelerate. Looking ahead to next quarter, we expect the enterprise network and telecom end markets to return to growth, while growth in the data center end market will further accelerate.
Analysts believe that Marvell took the lead in launching price increases, reflecting the high popularity of market demand and confirming Nvidia CEO Jensen Huang's previous view that "market demand is extremely crazy". It also opened up more potential business opportunities in the optical communications industry chain. Lots of room for imagination.
Affected by this, Marvell's stock price rose by more than 3.8% at the opening of Monday, and then the increase narrowed to about 1.3%, and was reported at $80.94 during the session. The company's shares have risen nearly 40% so far this year.
