In fiscal Q2, the chipmaker's revenue dropped 5% year-over-year to $1. 27 billion, with non-GAAP earnings decreasing from $0. 33 to $0. 30 per share. However, Marvell's data center revenue soared by 92% to $881 million, overshadowing these declines. For fiscal Q3, the company anticipates $1. 45 billion in revenue, slightly higher than the previous year. Analysts expect Marvell to end the year with $5. 54 billion in revenue, nearly flat compared to last year, and earnings are predicted to drop to $1. 46 per share from $1. 51. The positive news is that Marvell's growth in revenue and earnings is expected to accelerate in the following fiscal years. Marvell's long-term outlook is promising. With the booming demand for custom AI chips, analysts foresee significant growth. The company anticipates AI revenue to reach $1. 5 billion by fiscal 2025, climbing to $2. 5 billion by fiscal 2026. Marvell projects its data center total addressable market (TAM) will expand from $21 billion in 2023 to $75 billion by 2028 due to AI. This TAM includes $43 billion for custom compute chips and $26 billion for data center switching and interconnect markets, areas where Marvell is making notable progress. CEO Matt Murphy stated in a recent earnings call that Marvell's AI custom silicon programs are advancing well, with their first two chips moving into volume production.

New custom programs, including ones with a Tier 1 AI customer, are on track. These developments could lead to better-than-expected results for Marvell, and with shares trading at 37 times forward earnings, buying stock before December 3 might be wise. Buying successful stocks at the right time isn’t easy, but sometimes there’s a second chance. Our analysts occasionally issue “Double Down” recommendations for promising companies on the rise. Missing an opportunity doesn't mean it's gone forever. Consider these figures: - Investing $1, 000 in Nvidia in 2009 during our double down: $358, 460* - Investing $1, 000 in Apple in 2008 during our double down: $44, 946* - Investing $1, 000 in Netflix in 2004 during our double down: $478, 249* Currently, we're issuing "Double Down" alerts for three outstanding companies. Don’t miss this chance. Explore 3 “Double Down” stocks » *Stock Advisor returns as of November 25, 2024 Harsh Chauhan holds no positions in these stocks. The Motley Fool owns and recommends Nvidia, and recommends Marvell Technology. The Motley Fool’s disclosure policy applies.