What happened 

Shares of Marvell Technology (MRVL -1.84%) jumped on Friday after the chipmaker delivered better than expected fiscal 2022 third-quarter results. 

As of 3:20 p.m. ET, Marvell's stock price was up more than 17%.

So what

Marvell's net revenue surged 61% year over year to $1.2 billion. The semiconductor company enjoyed strong growth across all five of its major business segments. Revenue in Marvell's data center and automotive/industrial divisions more than doubled, while sales in its enterprise networking, carrier infrastructure, and consumer segments increased 56%, 28%, and 20%, respectively.

A semiconductor on a circuit board.

Image source: Getty Images.

Notably, Marvell was able to successfully navigate global supply chain bottlenecks at a time when many of its competitors are struggling to obtain the raw materials they need for their manufacturing operations.

During a conference call with analysts, CEO Matt Murphy said: 

Our operations team continues to do a great job in sourcing incremental supply, and we are starting to see the fruits of their labor. Supply was better than expected in the third quarter, and we expect continued improvements as we move into the fourth quarter and next year. The additional capacity has better positioned us to catch up to the growth in demand, which so far has outpaced increases in supply.

This operational success flowed to the company's financial statements. Marvell's adjusted gross margin improved to 65.1%, up from 63% in the third quarter of fiscal 2021. Its adjusted net income, in turn, soared 116% to $364 million, or $0.43 per share. That was well above Wall Street's estimates for adjusted per-share profits of $0.39.

Now what

For the fourth quarter, management expects:

  • Net revenue of approximately $1.3 billion, representing growth of 63%
  • Adjusted gross margin of roughly 65%
  • Adjusted earnings per share of $0.45 to $0.51

Peering further ahead, Murphy sees a promising future for the semiconductor leader.

"While we have been delivering strong results for multiple quarters, we are confident that we are still in the early stages of a sustained high-growth period for Marvell, and we are looking forward to reaping the benefits of the investments we have made in our business over the last few years," he said.