Maweier Technology (MRVL.US) Earnings Report Coming This Week! JPMorgan Upbeat Ahead of Results: AI ASIC Business Remains Strong, Reiterates "Overweight" Rating

CITIC Securities APP has learned that Mawiell Technology (MRVL.US) will announce its latest quarterly earnings after the US stock market closes on Thursday. JPMorgan released a research report, expecting strong demand for its optical DSP solutions (1.6T/800G), its leading custom AI ASIC project (Trainium 2) to continue strong growth, and its storage business (cloud HDD/SSD controllers) to also show robust growth. JPMorgan reaffirmed its “Overweight” rating on Mawiell Technology with a target price of $130.

Overall, JPMorgan expects Mawiell Technology’s January quarter results and April quarter guidance to be in line with or slightly above market expectations, mainly driven by steady growth in data center business and ongoing gradual improvement in non-AI cyclical businesses. During the January CES fireside chat, management emphasized that short-term orders are “booming,” with backlog orders and revenue visibility continuing to expand. Subsequently, the four major US cloud and hyperscale cloud service providers all raised their capital expenditure growth forecasts for the next year, expecting total capital spending to reach $645 billion by 2026 (a 56% year-over-year increase). The strong consumer environment has been further validated by the better-than-expected performance and upward guidance of AI semiconductor supply chain companies (such as Macom (MTSI.US), Astera Labs (ALAB.US), and NVIDIA (NVDA.US)). JPMorgan expects Mawiell Technology to benefit from similar trends.

In terms of custom ASICs, it is expected that AI custom revenue will reach approximately $1.8 billion in fiscal 2026 (a 20% YoY increase), doubling to $3.6 billion in fiscal 2027. The capacity ramp-up of the Trainium 2 ASIC has remained steady in the first half of this year, with the next-generation Trainium 3 XPU ASIC project scheduled to begin ramping in mid-year and achieve mass production in the second half. The team has secured purchase orders for the full fiscal 2026 year, and JPMorgan expects this project to generate $2 billion in annualized revenue in the second half. Mawiell’s Microsoft AI ASIC MAIA 3nm project is also on track to ramp capacity in the second half of fiscal 2026 and fiscal 2027. JPMorgan believes that the next-generation 2nm ASIC projects (AWS’s Trainium 4 and Microsoft’s Maia 2nm) are progressing as planned, with mass production expected in fiscal 2027/2028.

Overall, JPMorgan expects the company to deliver solid performance in fiscal 2026 driven by strong AI infrastructure development and customer-specific mass production projects. JPMorgan is updating its forecasts for 2028 to reflect the completion of the Celestial AI and XConn acquisitions, which further enhance Mawiell’s scalable networking capabilities and enable the company to support multiple network technologies, strengthening its robust network product portfolio. Given Mawiell’s success in winning AI XPU/ASIC contracts and its market leadership in fiber optic and copper cable connectivity, as well as benefiting from AI infrastructure spending trends, the firm remains optimistic about Mawiell Technology.