The Marvell Position: A Case Study

This is a retrospective case study of a Longlast Labs position in Marvell Technology (MRVL). The thesis was narrow: the market continued to value Marvell as a legacy hardware business while its revenue mix shifted toward data-center interconnects. This document covers the corporate actions that surfaced the position, the fundamentals that confirmed it, and the outcome at publication.

1. The Connection

As computing systems grow, they cannot run on a single chip. Thousands of processors must be wired together to work as one system.

These processors depend on high-bandwidth, low-latency interconnects to share data. Marvell Technology builds the interconnect silicon that makes this communication possible.

2. Tracking the Change

This position originated in Longlast Labs. Vector, the firm's filings monitor, flagged two corporate actions before consensus estimates reflected them:

• 1. The $2.5B sale of Marvell's automotive Ethernet business to Infineon (announced April 2025, completed August 2025).
• 2. Marvell agreed to acquire Celestial AI, an optical interconnect company, for up to $5.5B (announced December 2, 2025; completed February 2026).

SentAi's read: Marvell was divesting low-growth segments to concentrate on data-center networking. Subsequent 13F filings showed institutional accumulation consistent with our read.

3. Growth and Profit

SentAi then quantified the mix shift:

• 1. Data center revenue grew 78% year over year in Q4 FY2025 (quarter ended February 1, 2025; company filings).
• 2. Data center reached 75% of total revenue in the same quarter.
• 3. Margins held up as the new silicon ramped: non-GAAP gross margin was 59.7% in Q3 FY2026 (company filings).

Marvell was growing fast and profitably, but the market continued to value it as a legacy hardware business.

4. The Result

We initiated the position at a blended cost of $82.46, before consensus estimates reflected the data-center mix shift. In Q3 FY2026 (reported December 2, 2025), Marvell posted record revenue of $2.075B, up 37% year over year, with non-GAAP net income up 77% and $582.3M in operating cash flow (company filings). The market repriced.

Retrospective case study, for informational purposes only. Not investment advice. Past performance is not indicative of future results.