Marvell (MVRL) earnings call for the period ending December 31, 2022.

Q4 2023 Earnings Call, Mar 02, 2023, 4:45 p.m. ET

Call participants:

Ashish Saran -- Senior Vice President, Investor Relations

Matt Murphy -- President and Chief Executive Officer

Willem Meintjes -- Chief Financial Officer

Ross Seymore -- Deutsche Bank -- Analyst

Vivek Arya -- Bank of America Merrill Lynch -- Analyst

Toshiya Hari -- Goldman Sachs -- Analyst

C.J. Muse -- Evercore ISI -- Analyst

Joe Moore -- Morgan Stanley -- Analyst

Matt Ramsay -- Cowen and Company -- Analyst

Jeremy Kwan -- Stifel Financial Corp. -- Analyst

Blayne Curtis -- Barclays -- Analyst

Christopher Rolland -- Susquehanna International Group -- Analyst

Karl Ackerman -- Exane BNP Paribas -- Analyst

Quinn Bolton -- Needham and Company -- Analyst

Srini Pajjuri -- Raymond James -- Analyst

Prepared Remarks:

Operator

Good afternoon, and welcome to Marvell Technology's fourth quarter and fiscal year 2023 earnings conference call. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. And please note that this event is being recorded today. I would now like to turn the conference over to Mr.

Ashish Saran, senior vice president of investor relations. Please, go ahead, sir.

Ashish Saran -- Senior Vice President, Investor Relations

Thank you, and good afternoon, everyone. Welcome to Marvell's fourth quarter and fiscal year 2023 earnings call. Joining me today are Matt Murphy, Marvell's president and CEO; and Willem Meintjes, our new CFO. Let me remind everyone that certain comments made today include forward-looking statements, which are subject to significant risks and uncertainties that could cause our actual results to differ materially from management's current expectations.

Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website, as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measure is available in the investor relations section of our website.

With that, I'll turn the call over to Matt for his comments on our performance. Matt?

謝謝，大家下午好。 歡迎來到 Marvell 的第四季度和 2023 財年財報電話會議。 今天加入我的是 Marvell 總裁兼首席執行官 Matt Murphy； 和我們的新任首席財務官 Willem Meintjes。 讓我提醒大家，今天發表的某些評論包括前瞻性陳述，這些陳述存在重大風險和不確定性，可能導致我們的實際結果與管理層當前的預期存在重大差異。

請查看我們今天向美國證券交易委員會提交並發佈在我們網站上的收益新聞稿以及我們最近的 10-K 和 10-Q 文件中包含的警示性聲明和風險因素。 我們不打算更新我們的前瞻性陳述。 在我們今天的電話會議中，我們將提及某些非 GAAP 財務指標。 我們網站的投資者關係部分提供了我們的 GAAP 和非 GAAP 財務指標之間的對賬。

有了這個，我會把電話轉給馬特，聽取他對我們表現的評論，馬特？

Matt Murphy -- President and Chief Executive Officer

Thanks, Ashish, and good afternoon, everyone. Let me start by welcoming Willem, who is participating today in his first Marvell earnings call since being named CFO in January. Having previously served as Marvell's chief accounting officer and treasurer since 2018, Willem has deep institutional knowledge of our company and our end markets, which has helped him seamlessly transition into his new role. I look forward to partnering with him, as we continue to execute on the many opportunities in front of us.

Turning to our business results for the fourth quarter of fiscal 2023. Revenue was $1.42 billion, growing 6% year over year, above the midpoint of guidance, with better-than-expected results from our data center end market. Sequentially, as our customers dealt with a broad-based inventory correction, revenue declined by 8%, with the majority of the reduction coming from storage products within our data center end market. The rest of our end markets held up relatively well in a worsening macroeconomic environment.

謝謝，Ashish，大家下午好。首先讓我歡迎 Willem，他今天參加了他自 1 月被任命為首席財務官以來的第一次 Marvell 財報電話會議。 自 2018 年以來一直擔任 Marvell 的首席會計官和財務主管，Willem 對我們公司和我們的終端市場有著深入的機構知識，這幫助他無縫地過渡到他的新角色，我期待著與他合作，因為我們將繼續抓住擺在我們面前的許多機會。

轉向我們 2023 財年第四季度的業務結果，收入為 14.2 億美元，同比增長 6%，高於指導的中點，我們的數據中心終端市場的結果好於預期。 隨後，隨著我們的客戶處理廣泛的庫存調整，收入下降了 8%，其中大部分減少來自我們數據中心終端市場的存儲產品。 在不斷惡化的宏觀經濟環境中，我們其餘的終端市場表現相對良好。

Revenue grew sequentially in carrier, consumer and auto industrial and declined slightly in enterprise networking. Looking ahead to the first quarter, the inventory correction that we described last quarter has continued to impact near-term demand, along with typical seasonality for some of our products. As a result, at the midpoint of guidance, we are expecting consolidated revenue to decline by 8% sequentially and 10% year over year. In addition, coming out of the supply crunch, broadening inventory corrections are creating an unusual revenue mix.

In the first quarter, we expect storage to decline further and inventory correction to spread to a number of additional areas I will discuss later. At the same time, we are forecasting very strong sequential growth in revenue from 5G and a number of custom ASICs, but these have gross margins well below Marvell's corporate average. As a result, we expect a challenging gross margin outlook for the next few quarters. However, we are confident that once we emerge from the inventory digestion phase into a more normalized environment, we will be well positioned for our gross margins to recover.

電信商、消費者和汽車工業的收入環比增長，企業網絡的收入略有下降，展望第一季度，我們在上一季度描述的庫存調整繼續影響近期需求，同時我們的一些產品具有典型的季節性。 因此，在指導的中點，我們預計綜合收入將環比下降 8%，同比下降 10%。此外，從供應緊縮中走出來，擴大庫存修正正在創造一個不尋常的收入組合。

在第一季度，我們預計庫存將進一步下降，庫存調整將蔓延到我稍後將討論的其他一些領域。 與此同時，我們預測 5G 和一些定制 ASIC 的收入將出現非常強勁的連續增長，但這些產品的毛利率遠低於 Marvell 的企業平均水平。 因此，我們預計未來幾個季度的毛利率前景將充滿挑戰。 然而，我們有信心，一旦我們從庫存消化階段進入一個更加正常化的環境，我們將為毛利率的恢復做好準備。

Willem will discuss our expectations in his prepared remarks. Let me move on now to discussing our end markets, starting with data center. In our data center end market, revenue for the fourth quarter was $498 million, declining 13% year over year and 21% sequentially. Revenue was higher than anticipated, driven by better-than-expected results, primarily from our PAM DSPs and data center switches.

As expected, our storage business was responsible for the bulk of the overall sequential decline in our data center revenue. Our results reflect the deceleration in the data center end market and the beginning of efforts by our customers to adjust their inventory to respond to a more challenging market conditions. We are expecting this trend to continue and are projecting lower demand to impact multiple data center products. As a result, we expect revenue in the first quarter from our data center end market to decline in the mid-teens sequentially on a percentage basis.

威廉將在他準備好的發言中討論我們的期望。 現在讓我繼續討論我們的終端市場，從數據中心開始，在我們的數據中心終端市場，第四季度的收入為 4.98 億美元，同比下降 13%，環比下降 21%，收入高於預期，主要是由於我們的 PAM DSP 和數據中心交換機的業績好於預期。

正如預期的那樣，我們的存儲業務是造成我們數據中心收入整體環比下降的主要原因。 我們的結果反映了數據中心終端市場的減速以及我們的客戶開始努力調整庫存以應對更具挑戰性的市場條件。 我們預計這一趨勢將持續下去，並預計較低的需求將影響多個數據中心產品。 因此，我們預計第一季度來自數據中心終端市場的收入將按百分比連續下降 15%。

We project data center storage to decline again sequentially in the first quarter across HDD, SSD and fiber channel and also expect to see inventory adjustments to a lesser degree, broadly impact the rest of our data center products. Slowdown in spending signaled this year by multiple large data center customers is also impacting the timing of the ramp of our cloud optimized design wins. Our key design win projects remain intact, but the start of production for some of these programs is being delayed. As a result, the revenue ramp has shifted out by a couple of quarters compared to prior projections.

Our lifetime revenue expectations from these design wins remain in the same range as previously communicated. While we work through the near-term dynamics in the data center, we remain confident in the growth outlook for this end market. We are seeing data center customers prioritizing key growth areas such as AI and ML with potentially much larger investment over the next few years. Our relationship with Tier 1 cloud customers has continued to deepen as we engage with their architects on helping solve their most pressing challenges in their next-generation data centers with optimized customer specific solutions.

我們預計第一季度數據中心存儲在 HDD、SSD 和光纖通道上將再次連續下降，並且預計庫存調整幅度較小，這將廣泛影響我們其他數據中心產品。 多個大型數據中心客戶今年發出的支出放緩信號也影響了我們雲優化設計獲勝的時間。 我們的關鍵設計獲勝項目保持不變，但其中一些項目的生產開始被推遲。 因此，與之前的預測相比，收入增長已經推遲了幾個季度。

我們對這些設計勝利的終生收入預期與之前傳達的相同。 在我們研究數據中心的近期動態的同時，我們仍然對這個終端市場的增長前景充滿信心，我們看到數據中心客戶優先考慮關鍵增長領域，例如 AI 和 ML，並在未來幾年可能進行更大的投資，我們與一級雲客戶的關係不斷加深，因為我們與他們的架構師合作，通過優化的客戶特定解決方案幫助他們解決下一代數據中心中最緊迫的挑戰。

One key example is the collaboration we announced with Amazon Web Services intended to enable cloud-first silicon design, extending the long-standing relationship between our companies. Marvell is a strategic supplier to AWS, delivering cloud optimized silicon that helps meet the infrastructure needs of AWS customers, including the delivery of electro-optics, networking, security, storage and custom design solutions addressing multiple critical applications. We believe Marvell's leadership in essential silicon technologies helps AWS push the boundaries of data center performance essential for driving their long-term growth. Earlier today, we announced our new Nova optical DSPs and Teralynx 10 switches for next-generation data center networks.

Nova is the first commercially available PAM4 optical DSP to provide 200 gig per wavelength, twice the throughput of existing solutions over the same physical fiber. This breakthrough made possible by a significant improvement in electro-optics technology enables the industry's first 1.6 terabits per second pluggable optical modules. These modules provide twice the bandwidth in a physical package similar to existing solutions and are essential for the full deployment of 51.2T switches within the size and thermal density constraints of data centers. The higher performance enabled by this new 200 gig, 5-nanometer PAM DSP helps to extend the lead in electro-optics Inphi established and driving the market from 25-gig NRZ, 50-gig PAM to 100-gig PAM.

一個重要的例子是我們宣布與 Amazon Web Services 的合作，旨在實現雲優先矽設計，從而擴展我們公司之間的長期合作關係。Marvell 是 AWS 的戰略供應商，提供雲優化矽，幫助滿足 AWS 客戶的基礎設施需求，包括提供光電、網絡、安全、存儲和定制設計解決方案，以滿足多個關鍵應用程序。 我們相信 Marvell 在基本矽技術方面的領先地位有助於 AWS 突破數據中心性能的界限，這對於推動其長期增長至關重要。 今天早些時候，我們發布了用於下一代數據中心網絡的新型 Nova 光學 DSP 和 Teralynx 10 交換機。

Nova 是第一款商用 PAM4 光學 DSP，每波長提供 200 gig，是同一物理光纖上現有解決方案吞吐量的兩倍。 電光技術的顯著改進使這一突破成為可能，使業界首個每秒 1.6 太比特的可插拔光學模塊成為可能。 這些模塊在類似於現有解決方案的物理封裝中提供兩倍的帶寬，對於在數據中心的尺寸和熱密度限制內全面部署 51.2T 交換機至關重要。 這種新的 200 gig、5 納米 PAM DSP 實現的更高性能有助於擴大 Inphi 在電光學領域的領先地位，並推動市場從 25 gig NRZ、50 gig PAM 到 100 gig PAM。

The Nova platform provides a complete 1.6T solution, including DSPs, TIAs and drivers to the optical module ecosystem, reinforcing our expectations that pluggables will continue to remain the backbone of high-speed optical networking within data centers for the foreseeable future. Teralynx 10, a 5-nanometer programmable 51.2 terabit per second solution marks the latest in a series of cloud-optimized, low-latency, high bandwidth switches designed for use in leaf-and-spine architectures. The switch was designing close collaboration with leading cloud customers and Teralynx 10 together with Nova, creates a full platform to enable the next leap in bandwidth for cloud data centers. This is a tangible realization of the benefit of combining Marvell, Inphi and Innovium into a single entity focused on data infrastructure.

This combination of 51.2T switches with 1.6T optics enables a quadrupling in bandwidth versus existing solutions. This significant breakthrough in capacity at a lower power and cost per bit will be a compelling TCO driver for customers to viably upgrade their networks to support the large increase in bandwidth they need for AI and other applications. For customers, the co-deployment of Nova-based pluggable modules and Teralynx 10 switches should reduce their risk and accelerate time-to-market. And when combined with Marvell's extensive verification and interoperability testing should also minimize their work in transitioning to a new technology.

Nova 平台提供完整的 1.6T 解決方案，包括 DSP、TIA 和光模塊生態系統的驅動程序，加強了我們的預期，即在可預見的未來，可插拔器件將繼續成為數據中心內高速光網絡的支柱。 Teralynx 10 是一種 5 納米可編程每秒 51.2 太比特的解決方案，標誌著一系列專為葉脊架構設計的雲優化、低延遲、高帶寬交換機中的最新產品。 該交換機正在設計與領先的雲客戶和 Teralynx 10 以及 Nova 的密切合作，創建一個完整的平台，以實現雲數據中心帶寬的下一次飛躍。 這是對將 Marvell、Inphi 和 Innovium 合併為一個專注於數據基礎設施的單一實體的好處的具體實現。

這種 51.2T 開關與 1.6T 光學器件的組合使帶寬比現有解決方案翻了兩番。 這一以更低的功耗和每比特成本實現的容量重大突破將成為一個引人注目的 TCO 驅動因素，促使客戶切實升級他們的網絡，以支持他們對 AI 和其他應用所需的帶寬的大幅增加。 對於客戶而言，基於 Nova 的可插拔模塊和 Teralynx 10 交換機的共同部署應該會降低他們的風險並加快上市時間。 當與 Marvell 廣泛的驗證和互操作性測試相結合時，還應最大限度地減少他們在過渡到新技術方面的工作。

Turning to our carrier infrastructure end market. Revenue for the fourth quarter was $275 million, growing 14% year over year and 1% sequentially. Marvell's wireless and wired businesses drove strong year-on-year growth. We saw a strong demand for our wireless products as 5G adoption continue to expand.

Our wired business benefited from carrier backbone bandwidth upgrades that accelerated during the pandemic. At Mobile World Congress, we announced our next-generation 5-nanometer OCTEON Fusion 10 baseband processor. This customizable wireless platform has been adopted by leading base station OEMs to provide comprehensive, in-line layer 1 acceleration. This new processor, along with our previously announced OCTEON 10 DPU provides a complete processing platform for 5G baseband, transport, and massive MIMO.

轉向我們的運營商基礎設施終端市場。 第四季度收入為 2.75 億美元，同比增長 14%，環比增長 1%。 Marvell 的無線和有線業務推動了強勁的同比增長。 隨著 5G 的採用不斷擴大，我們看到了對我們的無線產品的強勁需求。

我們的有線業務受益於大流行期間加速的運營商骨幹帶寬升級。 在世界移動通信大會上，我們發布了下一代 5 納米 OCTEON Fusion 10 基帶處理器。 這種可定制的無線平台已被領先的基站原始設備製造商採用，以提供全面的在線第 1 層加速。 這款新處理器與我們之前發布的 OCTEON 10 DPU 一起為 5G 基帶、傳輸和大規模 MIMO 提供了一個完整的處理平台。

At MWC, we continue to see strong interest from multiple customers and partners for our latest generation of 5G products for both conventional and cloud-based architectures. Moving on to our outlook for the next quarter. For the first quarter of fiscal 2024, we are expecting significant growth in our wireless business with revenue projected to increase by approximately 25% sequentially driven by 5 G deployments in multiple geographies and our customer-specific product ramps. On the other hand, after an extended period of strong growth in our wired business, we are expecting revenue to decline in the double digits sequentially on a percentage basis.

As a result, for the first quarter of fiscal 2024, we expect revenue from our overall carrier end market to grow in the mid-single digits sequentially in the mid-teens year over year on a percentage basis. Moving on to our enterprise networking end market. Revenue for the fourth quarter was $366 million, with a strong 39% year-over-year growth, driven primarily by higher content and growing share of our merchant products, which drove the vast majority of our revenue in this end market in fiscal 2023. Sequentially, our revenue declined by 3% as we started to decrease channel inventory of our run rate merchant products, including further reductions in China.

在 MWC 上，我們繼續看到多個客戶和合作夥伴對我們用於傳統和基於雲的架構的最新一代 5G 產品的濃厚興趣。 繼續我們對下一季度的展望。 在 2024 財年第一季度，我們預計我們的無線業務將出現顯著增長，在多個地區的 5G 部署和我們的客戶特定產品的推動下，收入預計將環比增長約 25%。 另一方面，在我們的有線業務長期強勁增長之後，我們預計收入將按百分比連續下降兩位數。

因此，對於 2024 財年第一季度，我們預計我們的整體運營商終端市場的收入將在十幾歲中期按百分比連續增長。 繼續我們的企業網絡終端市場。 第四季度的收入為 3.66 億美元，同比強勁增長 39%，這主要是由於我們商業產品的內容和份額增加，這推動了我們在 2023 財年這一終端市場的絕大部分收入。 隨後，我們的收入下降了 3%，因為我們開始減少我們的商業產品的渠道庫存，包括在中國的進一步減少。

This was partially offset by growth in custom ASICs. Looking ahead to the first quarter of fiscal 2024, we are planning for additional reduction in channel and customer inventory of our merchant products and enterprise networking. However, we expect a strong ramp in custom ASICs to partially offset this decline. As a result, we project our overall enterprise networking revenue to decline in the high single-digits sequentially, while year-over-year growth is projected to remain strong in the high teens on a percentage basis.

Turning to our automotive and industrial end markets. Revenue in the fourth quarter grew 25% year over year to $99 million. Sequential revenue growth accelerated to 18% as supply improved. Looking to the first quarter of fiscal 2024, we project continued sequential growth from our auto business to be more than offset by a decline in our industrial business.

這部分被定制 ASIC 的增長所抵消。 展望 2024 財年第一季度，我們計劃進一步減少商家產品和企業網絡的渠道和客戶庫存。 然而，我們預計定制 ASIC 的強勁增長將部分抵消這一下降。 因此，我們預計我們的整體企業網絡收入將連續以高個位數下降，而按百分比計算，同比增長預計將保持在十幾歲左右。

轉向我們的汽車和工業終端市場，第四季度收入同比增長 25% 至 9900 萬美元，隨著供應的改善，收入環比增長加速至 18%，展望 2024 財年第一季度，我們預計汽車業務的持續環比增長將被工業業務的下滑所抵消。

Year over year, we expect our auto business to continue strong growth of over 30%, offset by a decline from our industrial business. As a result for our overall auto and industrial end market, we expect revenue to decline approximately 10% sequentially and be up – flat to up slightly year over year. 

Moving on to our consumer end market. Revenue for the fourth quarter was $180 million, declining 3% year over year and growing 1% sequentially. Revenue from our consumer SSD controllers continue to grow, while we saw declines in legacy printer ASICs and HDD controllers. Looking ahead to the first quarter, which tends to be seasonally softer in the consumer end market, we are forecasting revenue to decline sequentially by approximately 10%. In summary, fiscal 2023 was a very strong year for Marvell, with revenue growing 33% year over year to $5.9 billion, well above the industry and our long-term target model. Revenue from cloud grew approximately 50% year over year.

與去年同期相比，預計我們的汽車業務將繼續保持 30% 以上的強勁增長，但會被工業業務的下滑所抵消，因此，對於我們的整體汽車和工業終端市場，我們預計收入將環比下降約 10%，並且同比持平或略有上升。

轉向我們的消費者終端市場。 第四季度收入為 1.8 億美元，同比下降 3%，環比增長 1%。我們的消費者 SSD 控制器收入繼續增長，而我們看到傳統打印機 ASIC 和 HDD 控制器的收入下降。 展望第一季度，消費者終端市場的季節性趨於疲軟，我們預計收入將環比下降約 10%。 總之，2023 財年對 Marvell 來說是非常強勁的一年，收入同比增長 33% 至 59 億美元，遠高於行業和我們的長期目標模型。 來自云的收入同比增長約 50%。

Annual revenue from 5G crossed over $600 million and auto crossed over $200 million, important milestones for both end markets. During fiscal 2023, the first full year following the acquisition of Innovium, we drove a significant ramp in our data center switch revenue as a combined team. The Inphi portfolio continued to fire on all cylinders, with a strong ramp of our 800-gig PAM4 DSPs and 400ZR data center interconnect products. We completed the acquisition of Tanzanite to accelerate our organic CXL development.

Our enterprise networking business had a tremendous year with revenue growing 51% year over year, reflecting the significant share and content gains we have driven over the last two years. Through this period of rapid growth, we scaled the company in a thoughtful manner with non-GAAP opex growing 20% year over year, well below the 33% growth in revenue. Following another strong year for design wins, our opportunity funnel continues to expand with many large sockets that we believe Marvell is well positioned to win. While the broader semiconductor industry, including Marvell, is dealing with near-term headwinds, we are confident in our ability to weather this cycle and continue to execute over the long-term.

5G 年收入超過 6 億美元，汽車年收入超過 2 億美元，這對兩個終端市場來說都是重要的里程碑。在 2023 財年，即收購 Innovium 後的第一個完整年度，我們作為一個合併團隊推動了數據中心交換機收入的大幅增長，Inphi 產品組合繼續火力全開，我們的 800-gig PAM4 DSP 和 400ZR 數據中心互連產品強勁增長。 我們完成了對坦桑石的收購，以加速我們的有機 CXL 開發。

我們的企業網絡業務表現出色，收入同比增長 51%，這反映了我們在過去兩年中推動的巨大份額和內容收益。 在這段快速增長的時期，我們以深思熟慮的方式擴大了公司規模，非 GAAP 運營支出同比增長 20%，遠低於收入增長 33%。 在又一個設計獲勝的強勁年份之後，我們的機會漏斗繼續擴大，我們相信 Marvell 有能力贏得許多大型插座。 雖然包括 Marvell 在內的更廣泛的半導體行業正在應對近期的逆風，但我們相信我們有能力度過這個週期並繼續長期執行。

We remain laser focused on capital allocation and improving efficiency. We are evaluating our customers' latest plans, assessing our level of investment across the portfolio and redirecting resources to our best opportunities. As a result, we expect to reduce our opex in the second half of fiscal 2024. Over the long-term, our prospects remain compelling.

We have conviction in our plan, and we will continue to invest to support our strategy. As fiscal 2024 progresses, we expect the headwinds from inventory digestion will begin to subside, and mix will improve as demand patterns normalize. While storage has been impacted the most from inventory digestion, we are encouraged to see that customers have started to reduce their finished goods stock, clearing the path for a recovery. Revenue from OEM customers in China has declined to less than 10% of total company revenue.

我們仍然專注於資本配置和提高效率。 我們正在評估客戶的最新計劃，評估我們對整個產品組合的投資水平，並將資源重新分配給我們的最佳機會。 因此，我們預計將在 2024 財年下半年減少運營支出。從長遠來看，我們的前景仍然令人信服。

我們對我們的計劃充滿信心，我們將繼續投資以支持我們的戰略。 隨著 2024 財年的推進，我們預計庫存消化帶來的逆風將開始消退，並且隨著需求模式正常化，產品組合將得到改善。 雖然庫存消化對庫存的影響最大，但我們很高興看到客戶已經開始減少成品庫存，為複蘇掃清了道路。 來自中國 OEM 客戶的收入已下降至不到公司總收入的 10%。

But as China reopens, we expect demand will recover and become a tailwind. In fiscal 2024, we expect data center switching and 400ZR will continue to grow, and revenue from our cloud optimized silicon programs start to layer in. In addition, we project our 5G and auto end markets will continue to grow in fiscal 2024. As a result, for overall Marvell, we expect revenue to start growing in the second quarter and gather momentum in the second half of the fiscal year.

Longer-term, we are confident that our focus on data infrastructure and exposure to diversified end markets with secular growth position us well for the future. In our wireless end market, we expect content gains to layer in as 5G adoption continues worldwide. Our automotive opportunity continues to grow, and we see a path to growing revenue to over $500 million annually over the next few years. In data center, we expect to open up new revenue streams from emerging CXL and AEC opportunities.

但隨著中國重新開放，我們預計需求將復甦並成為順風。 在 2024 財年，我們預計數據中心交換和 400ZR 將繼續增長，我們的雲優化矽項目的收入開始分層。此外，我們預計我們的 5G 和汽車終端市場將在 2024 財年繼續增長。作為 因此，對於整個 Marvell，我們預計收入將在第二季度開始增長，並在本財年下半年積聚動力。

從長遠來看，我們相信，我們對數據基礎設施的關注以及對具有長期增長的多元化終端市場的敞口使我們在未來處於有利地位。 在我們的無線終端市場，我們預計隨著 5G 在全球範圍內的不斷普及，內容收益將逐步顯現。 我們在汽車行業的機會不斷增長，我們看到了在未來幾年內將收入增加到每年 5 億美元以上的途徑。 在數據中心，我們希望從新興的 CXL 和 AEC 機會中開闢新的收入來源。

We expect generative AI to drive a massive transformation in data center architecture. We see a bigger opportunity for cloud optimized silicon for custom compute, trend we had extensively discussed over the last couple of years. In addition to compute, the level of scaling in these generative models requires a significant innovation and technology leadership in networking infrastructure to interconnect AI supercomputers. This requires ultra-high bandwidth links with low latency and sufficient reach, minimizing energy expended to move the massive amounts of data in these platforms is another important criteria.

We believe these requirements are best met by high-speed optical connections. Last year, we launched the industry's first 800 gig PAM DSP and saw a huge ramp driven almost exclusively by AI applications. Our PAM DSP revenue from AI in fiscal 2023, more than quadrupled from the prior year. As AI models continue to grow in complexity, we expect that they will require more and more low-latency bandwidth.

我們期望生成式 AI 能夠推動數據中心架構的大規模轉型，我們看到了用於定制計算的雲優化矽的更大機會，這是我們在過去幾年中廣泛討論的趨勢。 除了計算之外，這些生成模型的擴展級別還需要網絡基礎設施方面的重大創新和技術領先，以互連 AI 超級計算機。 這需要具有低延遲和足夠覆蓋範圍的超高帶寬鏈路，最大限度地減少在這些平台中移動大量數據所消耗的能量是另一個重要標準。

我們相信高速光學連接可以最好地滿足這些要求。 去年，我們推出了業界首款 800 gig PAM DSP，並見證了幾乎完全由 AI 應用程序驅動的巨大增長。 我們在 2023 財年來自 AI 的 PAM DSP 收入比上一年增長了四倍多。 隨著 AI 模型的複雜性不斷增加，我們預計它們將需要越來越多的低延遲帶寬。

Earlier today, we announced the industry's first 1.6 terabit per second PAM platform, enabling a further doubling of bandwidth within the AI cluster. As investment in AI accelerates, we see this as a new growth engine for our electro-optics portfolio. As you've often heard me say, our employees are Marvell's greatest resource, the culture they have built is the foundation of our ongoing success. 

In January, Glassdoor named Marvell as one of the top 100 Best Places to Work in the US for 2023. We are in the second highest ranking among semiconductor companies. In February, we were honored to receive the Great Place to Work certification. These awards are a testament to our culture and dedication to creating a collaborative, compassionate and respectful workplace, while remaining focused on growth and execution. Thank our entire team for their contributions to Marvell to enable us to develop leading-edge essential technology that helps power the world's data infrastructure.

With that, I'll turn the call over to Willem for more detail on our recent results and outlook.

今天早些時候，我們宣布了業界首個每秒 1.6 太比特的 PAM 平台，使 AI 集群內的帶寬進一步翻倍。 隨著對人工智能的投資加速，我們將其視為我們光電產品組合的新增長引擎。 正如您經常聽到我說的那樣，我們的員工是 Marvell 最重要的資源，他們建立的文化是我們不斷取得成功的基礎。 

1 月，Glassdoor 將 Marvell 評為 2023 年美國 100 家最佳工作場所之一，我們在半導體公司中排名第二，2 月，我們很榮幸獲得 Great Place to Work 認證。 這些獎項證明了我們的文化和致力於創造協作、富有同情心和相互尊重的工作場所，同時繼續專注於增長和執行。 感謝我們的整個團隊為 Marvell 做出的貢獻，使我們能夠開發出有助於為全球數據基礎設施提供動力的前沿基本技術。

有了這個，我會把電話轉給 Willem，了解我們最近的結果和前景的更多細節。

Willem Meintjes -- Chief Financial Officer

Thanks, Matt, and good afternoon, everyone. Let me start with a summary of our fiscal year 2023 results. Marvell's revenue grew significantly by 33% year on year to a record $5.92 billion. GAAP gross margin was 50.5% and GAAP loss per diluted share was $0.19.

Our non-GAAP gross margin was 64.5%. Our GAAP operating margin was 4%. Non-GAAP operating margin expanded to 35.5%. Non-GAAP earnings per diluted share grew 35% year on year to $2.12.

We returned $319 million to shareholders through dividends and buybacks. Moving on to our financial results for the fourth quarter. Revenue in the fourth quarter was $1.419 billion, exceeding the midpoint of our guidance, growing 6% year over year and declining 8% sequentially. 

謝謝，馬特，大家下午好。 讓我先總結一下我們 2023 財年的業績。 Marvell 的收入同比大幅增長 33%，達到創紀錄的 59.2 億美元。 GAAP 毛利率為 50.5%，GAAP 每股攤薄虧損為 0.19 美元。

我們的非 GAAP 毛利率為 64.5%。 我們的 GAAP 營業利潤率為 4%。 非 GAAP 營業利潤率擴大至 35.5%。 非 GAAP 每股攤薄收益同比增長 35% 至 2.12 美元。

我們通過股息和回購向股東返還了 3.19 億美元。 繼續我們第四季度的財務業績。 第四季度收入為 14.19 億美元，超過我們指引的中點，同比增長 6%，環比下降 8%。 

Data center was our largest end market driving 35% of our total revenue. Enterprise networking was the next largest, with 26% of total revenue, followed by carrier infrastructure at 19%, consumer at 13% and auto industrial at 7%. GAAP gross margin was 47.5%. Non-GAAP gross margin was 63.5%, 50 basis points below forecast, primarily due to a change in revenue mix within certain end markets compared to our guidance. GAAP operating expenses were $650 million, including share-based compensation, amortization of acquired intangible assets, legal settlements and acquisition related costs.

Non-GAAP operating expenses were $431 million. GAAP operating margin was 1.6%. Non-GAAP operating margin was 33.1%. For the fourth quarter, GAAP loss per diluted share was $0.02.

Non-GAAP income per diluted share was $0.46 at the midpoint of guidance. Now, turning to our balance sheet and cash flow. During the quarter, cash flow from operations was $352 million. This included $56 million in payments for long-term capacity agreements.

數據中心是我們最大的終端市場、佔我們總收入的 35%，企業網絡位居第二、佔總收入的 26%，其次是運營商基礎設施、佔 19%，消費者佔 13%，汽車工業佔 7%。 GAAP 毛利率為 47.5%。 非 GAAP 毛利率為 63.5%，比預期低 50 個基點，這主要是由於某些終端市場的收入組合與我們的指導相比發生了變化。 GAAP 運營費用為 6.5 億美元，包括股權補償、收購無形資產攤銷、法律和解和收購相關成本。

非 GAAP 運營費用為 4.31 億美元。 GAAP 營業利潤率為 1.6%。 非 GAAP 營業利潤率為 33.1%。 第四季度，GAAP 每股攤薄虧損為 0.02 美元。

非 GAAP 每股攤薄收益為 0.46 美元，處於指導的中點。 現在，轉向我們的資產負債表和現金流量。 本季度，運營現金流為 3.52 億美元。 這包括 5600 萬美元的長期容量協議付款。

In fiscal 2023, payments for long-term capacity totaled $252 million. Looking ahead to fiscal 2024, we are currently anticipating significantly lower payments for capacity and a much reduced headwind to operating cash flow. Inventory at the end of the fourth quarter was $1.07 billion, growing by $111 million sequentially. As we indicated in our prior call, we expected inventory to grow in the fourth quarter to support upcoming product ramps.

Looking ahead to the first quarter, we expect inventory to start to come down and be a tailwind to operating cash flow over the year. We returned $51 million to shareholders through cash dividends. As of the end of the fourth fiscal quarter, our cash and cash equivalents were $911 million, growing by $188 million from the prior quarter. Our total debt was $4.5 billion.

在 2023 財年，長期產能支付總額為 2.52 億美元。 展望 2024 財年，我們目前預計產能支付將大幅減少，運營現金流的逆風將大大減少。 第四季度末庫存為 10.7 億美元，環比增長 1.11 億美元。 正如我們在之前的電話會議中指出的那樣，我們預計第四季度庫存將增長，以支持即將到來的產品量產。

展望第一季度，我們預計庫存將開始下降，並成為全年經營現金流的順風。 我們通過現金股息向股東返還了 5100 萬美元。 截至第四財季末，我們的現金和現金等價物為 9.11 億美元，比上一季度增加 1.88 億美元。 我們的總債務為 45 億美元。

Our gross debt-to-EBITDA ratio was 1.87 times and net debt-to-EBITDA ratio was 1.49 times. $500 million of our total debt is due in June 2023. We are currently planning on paying this off using our cash balance and free cash flow, which we expect to improve our gross leverage. Turning to our guidance for the first quarter of fiscal 2024.

We are forecasting revenue to be in the range of $1 3 billion, plus or minus 5%. We expect our GAAP gross margin will be in the range of 44.1% to 46.1%. We project our non-GAAP gross margin will be approximately 60%. This guidance takes into account the adverse revenue mix we are expecting in the first quarter, and we currently expect mix will remain challenging for a few quarters.

我們的總債務與 EBITDA 比率為 1.87 倍，淨債務與 EBITDA 比率為 1.49 倍。 我們的總債務中有 5 億美元將於 2023 年 6 月到期。我們目前正計劃使用我們的現金餘額和自由現金流來償還這筆債務，我們預計這將提高我們的總槓桿率。 轉向我們對 2024 財年第一季度的指導。

我們預測收入將在 130 億美元的範圍內，上下浮動 5%。 我們預計我們的 GAAP 毛利率將在 44.1% 至 46.1% 之間。 我們預計我們的非 GAAP 毛利率將約為 60%。 該指引考慮了我們預計第一季度的不利收入組合，我們目前預計未來幾個季度的收入組合仍將充滿挑戰。

Once we get through this period of inventory correction, combined with cost improvement actions underway, we expect non-GAAP gross margin to get closer to the low end of our target range by the fourth quarter. We project our GAAP operating expenses to be approximately $687 million. We anticipate our non-GAAP operating expenses to be approximately $460 million. This forecast includes a step-up from the prior quarter due to typical seasonality in payroll taxes and employee salary merit increases.

As Matt discussed, we intend to continue to invest prudently in our long-term growth initiatives while further improving efficiency and optimizing capital deployment. Altogether, we expect to reduce our non-GAAP operating expense run rate by approximately $15 million a quarter in the second half of the year. We expect the full reduction to be achieved in the fourth quarter. Other income and expense, including interest on our debt is expected to be approximately $49 million.

一旦我們度過了這段庫存調整期，再加上正在進行的成本改善行動，我們預計非美國通用會計準則毛利率將在第四季度接近我們目標範圍的低端。 我們預計我們的 GAAP 運營費用約為 6.87 億美元。 我們預計我們的非 GAAP 運營費用約為 4.6 億美元。 由於工資稅和員工薪資增長的典型季節性，該預測包括比上一季度有所提高的預測。

正如馬特所討論的那樣，我們打算繼續審慎地投資於我們的長期增長計劃，同時進一步提高效率和優化資本配置。 總之，我們預計在今年下半年將我們的非 GAAP 運營費用運行率每季度減少約 1500 萬美元。 我們預計第四季度將實現全面削減。 其他收入和支出，包括我們債務的利息，預計約為 4900 萬美元。

For the first quarter, we expect a non-GAAP tax rate of 7%. We expect our basic weighted average shares outstanding will be 858 million, and our diluted weighted average shares outstanding will be 863 million. As a result, we anticipate GAAP loss per share in the range of $0.12 to $0.20 per share. We expect non-GAAP income per diluted share in the range of $0.24 to $0.34.

對於第一季度，我們預計非 GAAP 稅率為 7%。 我們預計我們的基本加權平均流通股為 8.58 億股，稀釋後的加權平均流通股為 8.63 億股。 因此，我們預計每股 GAAP 虧損在 0.12 美元至 0.20 美元之間。 我們預計非 GAAP 每股攤薄收益在 0.24 美元至 0.34 美元之間。

Operator, please open the line and announce Q&A instructions. Thank you.

Questions & Answers:

Operator

And our first question will come from Ross Seymore with Deutsche Bank. Please go ahead.

Ross Seymore -- Deutsche Bank -- Analyst

Hi, guys. Thanks for letting me ask a question. Matt, I just wanted to ask about the general business conditions. In the last quarter, you talked about -- in the October quarter, you said that things were weakening toward the end of the quarter and then throughout the January quarter.

Can you talk about the linearity of demand, whether it be by end markets and/or geographies as you go through the end of the January quarter and thus far into the April quarter?

嗨，大家好。 謝謝你讓我問一個問題。 馬特，我只是想問一下一般的商業狀況。 在上個季度，您談到了 - 在 10 月季度，您說在本季度末以及整個 1 月季度，情況都在減弱。

你能談談需求的線性度嗎，無論是在 1 月季度末還是到目前為止到 4 月季度的終端市場和/或地區？

Matt Murphy -- President and Chief Executive Officer

Yes. Thanks Ross for the question. We've seen the business conditions continue to weaken, I'd say, in the last couple of months, the I'd say the breadth and some of the steepness of the decline. We've continued to see -- we had thought that storage was going to kind of bottom out.

Last quarter, it's down again. There are some green shoots there just given what we see in terms of end customer stock levels coming down, and we believe that throughout the year, that's going to improve. But I'd say just, generally, in the storage area broadly and then in the data center, as you can see from our guidance. not only in storage, but a little bit broader.

是的，感謝羅斯的提問。我們已經看到商業環境繼續疲軟，我想說，在過去的幾個月裡，我想說的是衰退的廣度和一些陡峭程度，我們繼續看到——我們原以為存儲會觸底。

上個季度，它又下降了。 鑑於我們在終端客戶庫存水平下降方面看到的情況，那裡出現了一些新芽，我們相信在全年中，這種情況將會有所改善。 但我想說的是，一般來說，在廣泛的存儲領域，然後是數據中心，正如你從我們的指南中看到的那樣，不僅在存儲方面，而且在更廣泛的方面。

The inventory correction is still going on. At the same time, I think what's happened in the wireless business in 5G, that's continued to be very resilient and growing, which is a positive as automotive as well continues to be very strong for us, and we see that as a growing business again this year. That's on a great upward trajectory. So, a lot of moving pieces, Ross, but I'd say the things that were weaker a quarter ago have continued to weaken a little bit more.

And then, the areas where we had some optimism, those have continued to do better. It's really interesting how these various end markets are kind of moving at different times. But when you add it all up, basically, and you look out over the next few quarters, we do see growth in the second quarter and then as a result of really what we believe will be the inventory digestion and the normalization in the back half plus continued strength in things like 5G and automotive and then also our cloud optimized ramp. And in theory, some of the China business should come back, we're starting to be optimistic about the second half relative to the recovery.

庫存修正仍在進行中，與此同時，我認為 5G 無線業務發生的事情繼續非常有彈性和增長，這是積極的，因為汽車對我們來說也繼續非常強大，我們再次將其視為一個增長的業務。這是一個很好的上升軌跡。 所以，羅斯，有很多動人的東西，但我想說的是，一個季度前較弱的東西繼續減弱了一點。

然後，我們有一些樂觀的領域，那些繼續做得更好。 這些不同的終端市場在不同的時間是如何變化的，這真的很有趣。 但是當你把所有這些加起來，基本上，你看看接下來的幾個季度，我們確實看到了第二季度的增長，然後由於我們認為真正的結果是庫存消化和後半部分的正常化，再加上 5G 和汽車等領域的持續實力，以及我們的雲優化坡道。 從理論上講，一些中國業務應該會回來，相對於復蘇，我們開始對下半年持樂觀態度。

So that's some of the moving pieces, and I agree, it's -- in the infrastructure business, this doesn't move up and down typically as much as, say, a consumer business. So it started in October. We're still going through the journey here in the January and April quarters, and then we see a recovery in the second half.

所以這是一些移動的部分，我同意，它是 - 在基礎設施業務中，這通常不會像消費者業務那樣上下移動。 所以它從十月開始。 我們仍在經歷 1 月和 4 月季度的旅程，然後我們將在下半年看到復蘇。

Ross Seymore -- Deutsche Bank -- Analyst

Thank you.

Operator

And our next question will come from Vivek Arya with Bank of America. Please go ahead.

Vivek Arya -- Bank of America Merrill Lynch -- Analyst

Thanks for taking my question. Matt, I'm curious what second half recovery looks like? Is there the potential to get back to this kind of $1.5-ish billion quarterly run rate, you guys were at. And then, as part of that, I'm also curious to know what should be the updated view $400 million and $800 million in cloud-optimized silicon. And the one thing that I think Willem mentioned that you will only be able to get to the lower end of the gross margin range.

I'm a little confused that if there is the recovery, then why would you be at the lower end of the gross margin range. So kind of related questions. Thank you.

感謝您提出我的問題。 馬特，我很好奇下半年的復甦情況如何？ 是否有可能回到這種 15 億美元的季度運行率？然後，作為其中的一部分，我也很想知道 4 億美元和 8 億美元的雲優化矽的更新視圖應該是什麼，我認為 Willem 提到的一件事是你只能達到毛利率範圍的低端。

我有點困惑，如果有復甦，那你為什麼會處於毛利率範圍的低端。 諸如此類的相關問題。 謝謝。

Matt Murphy -- President and Chief Executive Officer

Sure. Yes. No problem, Vivek. We'll treat it as one integrated question.

So let me start with the cloud optimized ramp. As I said in my prepared remarks, and you can see sort of what's happening in the data center area, there is some delay, and there's some prioritization within those companies on how they're going to deploy. We feel very good overall about the programs and the lifetime revenue of those programs, but they have, in aggregate, shifted out by a couple of quarters. So if you just assume that the plan for $400 million this year was more back-end loaded as those ramped then the effect of that pushing out by a couple of quarters, we think it probably takes it down by about half.

當然。 是的。 沒問題，維維克。 我們會將其視為一個綜合問題。

因此，讓我從雲優化斜坡開始，正如我在準備好的發言中所說，你可以看到數據中心領域正在發生的事情，有一些延遲，並且這些公司內部對他們將如何部署有一些優先級。 我們對這些項目和這些項目的終身收入總體感覺非常好，但總體而言，它們已經轉移了幾個季度。 因此，如果您只是假設今年 4 億美元的計劃隨著這些計劃的增加而增加了後端負載，那麼將其推遲幾個季度的影響，我們認為它可能會減少大約一半。

We don't know quite yet exactly, but just to give you a big round numbers, I think that's a safe assumption for now. The other question was around what does the second half recovery look like. I think it's too early to call it specifically at this point. I mean, we're still seeing a lot of volatility in the business, as you can see from our first quarter guide.

But when we step back and look at it from 30,000 feet and we also take the broad indicators from our customers, we do expect it as we said, to start growing from Q2 and beyond. The question is how big is the recovery and what comes back. So it's a little bit hard to call precisely where that's going to be at this juncture. And then, on gross margins, again, it really comes down to the mix.

我們還不太清楚，但只是給你一個大的整數，我認為現在這是一個安全的假設。另一個問題是下半年的復甦是什麼樣子的。 我認為現在具體稱呼它還為時過早，我的意思是，正如您從我們的第一季度指南中看到的那樣，我們仍然看到業務波動很大。

但是，當我們退後一步，從 30,000 英尺的高度觀察它，並且我們也從客戶那裡獲取廣泛的指標時，我們確實希望它像我們所說的那樣，從第二季度及以後開始增長，問題是複甦的幅度有多大，又會帶來什麼，因此，在這個時刻準確地預測它的位置有點困難。然後，在毛利率方面，它真的歸結為組合。

Historically, if you look, we've -- the company has actually had pretty stable gross margins. I mean, they've moved around a little bit, but in general, that's been a fairly predictable thing. You can see based on this downturn we're going through just the volatility that's come in relative to the mix. So we see that improving in the second half.

Again, I think it's too early to call the exact trajectory. So just in the abundance of being prudent here, we're calling it getting up to the lower end of the range. But again, it's highly dependent on mix, product ramps and what the end markets do. This is the best we know at this time.

從歷史上看，如果你看的話，我們 - 公司實際上有相當穩定的毛利率。 我的意思是，他們已經移動了一點點，但總的來說，這是一件相當可預測的事情。你可以看到，基於這次低迷，我們正在經歷相對於組合的波動。 所以我們看到下半場情況有所改善。

同樣，我認為現在說出確切的軌跡還為時過早。因此，出於謹慎考慮，我們稱其達到了該範圍的下限。 但同樣，它高度依賴於產品組合、產品提升以及終端市場的行為。 這是我們目前所知道的最好的。

Vivek Arya -- Bank of America Merrill Lynch -- Analyst

Thank you, Matt.

Operator

Our next question will come from Toshiya Hari with Goldman Sachs. Please go ahead.

Toshiya Hari -- Goldman Sachs -- Analyst

Hi. Good afternoon. Thanks so much for taking the question. Matt, I wanted to ask about generative AI and to the extent your customer conversations have evolved over the past couple of months.

You talked about the cloud optimized opportunity being pushed out. But have you sensed any change in customer pull as it relates to AI? You talked about your exposure in compute and networking. You also talked about your PAM DSP business, specifically in AI quadrupling last year. Curious how you're thinking about that business in fiscal 2024? Thank you.

你好。 下午好。 非常感謝您提出這個問題。 馬特，我想問一下生成式人工智能，以及你的客戶對話在過去幾個月裡發生了多大程度的變化。

您談到了被推出的雲優化機會。 但是您是否感覺到與 AI 相關的客戶拉動有任何變化？ 你談到了你在計算和網絡方面的經驗。 您還談到了您的 PAM DSP 業務，特別是去年 AI 翻了兩番。 想知道您如何看待 2024 財年的這項業務嗎？ 謝謝。

Matt Murphy -- President and Chief Executive Officer

Sure. Yeah. I think the -- as we said in the prepared remarks, the impact of generative AI and the buzz around that is a real positive for Marvell. The ramp on our 800-gig products really over the last few years was driven by AI clusters and AI applications.

So that's gone very, very well, and we see a tailwind there over time on our optics business. I'd also note, we just announced today our 1.6 terabit per second product, which also has native 200-gig per lane I/O. That's a real product that's sampling, and it's going to go into production, we believe, sometime next year. And again, the big pull there will be because of the doubling of the bandwidth, another ramp for us relative to AI.

當然。 是的。 我認為——正如我們在準備好的評論中所說的那樣，生成人工智能的影響和圍繞它的熱議對 Marvell 來說是一個真正的積極因素。 過去幾年，我們 800 兆產品的增長實際上是由 AI 集群和 AI 應用程序推動的。

所以這一切都非常非常順利，隨著時間的推移，我們的光學業務出現了順風。 我還要指出，我們今天剛剛發布了每秒 1.6 太比特的產品，該產品還具有每通道 200 千兆的原生 I/O。 這是一個真正的樣品產品，我們相信它會在明年某個時候投入生產。 再一次，由於帶寬加倍，這將是一個巨大的拉力，這是我們相對於 AI 的另一個斜坡。

So that under the hood, despite a lot of the chop in the other businesses, has been a real bright spot for us. And we're very encouraged on that outlook. And then, in addition, some of these systems for AI clusters are going to get -- have to get -- data centers are going to have to get rearchitected quite frankly. And we think that's also going to drive the need for cloud optimized silicon as well to complement the GPUs that are used, as well as the optics.

So, I think, there's a broader opportunity here for sure. I think this is a very bright spot for us in the cloud. And I think it's evolving very quickly. Ashish, did you want to add anything to that?

因此，儘管其他業務有很多損失，但在幕後，這對我們來說是一個真正的亮點。 我們對這種前景感到非常鼓舞。 然後，此外，坦率地說，其中一些用於人工智能集群的系統將—必須—數據中心將不得不重新架構。 我們認為這也將推動對雲優化矽的需求，以補充所使用的 GPU 以及光學器件。

所以，我認為，這里肯定有更廣泛的機會。 我認為這是我們在雲中的一個非常亮點。 我認為它的發展非常迅速。 Ashish，你想補充什麼嗎？

Ashish Saran -- Senior Vice President, Investor Relations

No, I think the other thing I'd add is, I think we're already starting to see requests from cloud customers to really accelerate the availability of our next-gen products, right? I think we've seen a distinct change in tone, I would say, over the last quarter or two where we introduced our 1.60 as an example. You're certainly getting a request at a, how quickly can it become available, because they see the bandwidth needs really expanding very, very quickly. So I think it's very critical for us to get these products out even faster.

不，我想我要補充的另一件事是，我認為我們已經開始看到雲客戶要求真正加速我們下一代產品的可用性，對嗎？ 我想我們已經看到了明顯的語氣變化，我想說，在過去的一兩個季度中，我們以 1.60 為例。 你肯定會收到一個請求，它能以多快的速度可用，因為他們看到帶寬需求確實非常非常快地擴展。 所以我認為對我們來說，更快地推出這些產品非常重要。

Toshiya Hari -- Goldman Sachs -- Analyst

Thanks, guys.

Operator

And our next question will come from C.J. Muse of Evercore. Please, go ahead.

C.J. Muse -- Evercore ISI -- Analyst

Yes. Good afternoon. Thank you for taking the question. Just routine part for you, Matt.

So I won't take too long. But specific to data center, I was hoping we could drill a little bit deeper into kind of the trends you've seen year on year based on the implied guide. So roughly, I think, down to $220 million. Is there a way to kind of parse through how much of that is storage, preamp, fiber channel and other? And maybe help us better understand kind of the slowdown in other, what drove that? And then, from here, how do you think about the different parts between kind of storage, other and the new products that you already kind of spoke about.

So we have a pretty good idea there. But any way to kind of frame that would be very helpful.

是的。 下午好。 謝謝你提出這個問題。 對你來說只是例行公事，馬特。

所以我不會花太長時間。 但具體到數據中心，我希望我們可以根據隱含的指南更深入地了解你每年看到的趨勢。 所以粗略地說，我認為下降到 2.2 億美元。 有沒有一種方法可以分析其中有多少是存儲、前置放大器、光纖通道和其他？ 也許可以幫助我們更好地了解其他方面的放緩，是什麼原因造成的？ 然後，從這裡開始，您如何看待您已經談到的存儲類型、其他產品和新產品之間的不同部分。

所以我們有一個很好的主意。 但是任何一種框架的方式都會非常有幫助。

Matt Murphy -- President and Chief Executive Officer

Yes. Sure. Yes, C.J., sure, go ahead. I'll let Willem start off, and then I can add to it as appropriate.

Great question.

Willem Meintjes -- Chief Financial Officer

Yes. So, I think, first of all, on a year-over-year basis, storage is a much bigger part of that decline for Q1. The way we think about it, C.J., we spoke originally about the $1.4 billion for storage, right? And so, if you look at that on a quarterly basis, it's about 60% was data center. So on a quarterly basis, it's just over $200 million.

And last quarter, we obviously indicated that was down significantly. And this quarter, again, the decrease in data center was more in storage compared to the rest.

是的。 因此，我認為，首先，與去年同期相比，存儲在第一季度的下降中所佔的比重要大得多。 我們的思考方式，C.J.，我們最初談到了 14 億美元的存儲，對嗎？ 因此，如果您按季度查看，大約有 60% 是數據中心。 所以按季度計算，它剛剛超過 2 億美元。

上個季度，我們顯然表示下降幅度很大。 而本季度，與其他數據中心相比，數據中心的減少更多的是存儲。

C.J. Muse -- Evercore ISI -- Analyst

I guess, is there a way to frame what the other parties outside of storage? I mean, it certainly feels like roughly maybe $150 million out of the $220 million decline in storage, but we'd love to isolate on that 70 and how you see that part of your business recovery?

我想，有沒有辦法將存儲之外的其他方構建起來？ 我的意思是，在存儲下降的 2.2 億美元中，這肯定感覺大約是 1.5 億美元，但我們很樂意孤立這 70 美元，以及您如何看待這部分業務復甦？

Ashish Saran -- Senior Vice President, Investor Relations

Hey C.J., it's Ashish. Let me just add some more color. So I think if you look at the year on year, the much bigger portion of storage, as Willem just walked through, if you think about all the other product lines, right, this include optics, as well as some of our networking products within data center, that's where we're seeing a much smaller decline in Q1. These inventory corrections take typically a couple of quarters, right? So I think you'll expect them to start to bounce back, I would say, in the second half.

And I think they get a lot bigger. So the non-storage portion of data center really starts to recover in the second half and gets a lot bigger. And on top of that, even though we have pushed out some of the ramps of our cloud optimized, on an incremental basis, you will see some additional revenue in the second half. So overall, non-storage is a big part of how we see data center recovering in the second half of the year.

嘿 C.J.，我是 Ashish。 讓我再添加一些顏色。 所以我認為，如果你逐年看，存儲的更大部分，正如 Willem 剛剛走過的那樣，如果你考慮所有其他產品線，對，這包括光學，以及我們內部的一些網絡產品 數據中心，這是我們看到第一季度下降幅度要小得多的地方。 這些庫存修正通常需要幾個季度，對嗎？ 所以我認為你會期望他們在下半場開始反彈。

而且我認為它們變得更大了。 因此，數據中心的非存儲部分在下半年真正開始恢復並變得更大。 最重要的是，儘管我們已經推出了一些雲優化的斜坡，但在增量的基礎上，您將在下半年看到一些額外的收入。 因此，總體而言，非存儲是我們如何看待下半年數據中心復甦的重要組成部分。

C.J. Muse -- Evercore ISI -- Analyst

Thank you.

Operator

And our next question will come from Joe Moore with Morgan Stanley. Please go ahead.

Joe Moore -- Morgan Stanley -- Analyst

Great. Thank you. I wonder if you could talk about the gross margin pressure in the April quarter, carrier being up mid-single digit is not that much incremental revenue. Can you just give us some sense for the gross margin disparity between the carrier centric custom business and the rest of it? And then, I guess, separate from that, as you ramp other parts of custom ASIC into cloud, do you expect to see that be more like the corporate gross margin.

偉大的。 謝謝。 我想知道你是否可以談談 4 月份季度的毛利率壓力，承運人增長到中個位數並不是那麼多的增量收入。 您能否讓我們了解一下以運營商為中心的定制業務與其他業務之間的毛利率差異？ 然後，我想，與此分開，當您將定制 ASIC 的其他部分推向雲時，您是否希望看到它更像是公司的毛利率。

Willem Meintjes -- Chief Financial Officer

Yeah. So let me start. So the way to think about that is, I think in the prepared remarks we just said wire was done significantly about 20% and that was offset by the growth in wireless. So net-net, you see a small growth there, but it's those two dynamics that offsetting each other.

是的。 那麼讓我開始吧。 所以思考這個問題的方式是，我認為在準備好的評論中我們剛剛說有線完成了大約 20%，這被無線的增長所抵消。 所以淨淨，你看到那裡有小幅增長，但正是這兩種動力相互抵消。

Joe Moore -- Morgan Stanley -- Analyst

OK. And I mean, it seems like still even 25% growth in 5G, to cause a four-point margin disparity overall, it seems like --

好的。 我的意思是，5G 似乎仍有 25% 的增長，導致總體利潤率差距達 4 個百分點，似乎——

Willem Meintjes -- Chief Financial Officer

Yeah, sure. So I think the way to look at it is overall, we saw additional weakness in storage, particularly in HCV and fiber channel, which typically is higher gross margin product for us. In addition, we've seen a decrease in our merchant enterprise networking business, which is also a higher gross margin product. And so, that with the growth in 5G, and then also we've seen some strong increase in our ASIC business, which both of those are typically slightly lower gross margin product.

And that in combination with -- certainly with the top line coming down, we've had some headwinds from fixed cost absorption. And so, overall, that's driving the decrease that you're seeing.

好，當然。 所以我認為從整體上看，我們看到了存儲方面的額外弱點，特別是在 HCV 和光纖通道方面，這對我們來說通常是更高的毛利率產品。 此外，我們看到我們的商業企業網絡業務有所減少，這也是一種毛利率較高的產品。 因此，隨著 5G 的增長，我們也看到了 ASIC 業務的強勁增長，這兩種業務通常都是毛利率略低的產品。

再加上——當然隨著收入的下降，我們在固定成本吸收方面遇到了一些阻力。 因此，總體而言，這正在推動您所看到的下降。

Matt Murphy -- President and Chief Executive Officer

Hey Joe, let me add a couple of things because it's a very good question. So first, fully agree with everything Willem said in the way he characterized it, which is fundamentally that we had some accretive to gross margin product lines declined fairly significantly and fairly rapidly. And at the same time, we're seeing strong growth in product lines that are less than the corporate average, and it's moved the gross margin much more significantly than anything we've experienced in some time. And maybe just to take it from the top on a bigger picture for a second.

Our custom business came from the purchase of Avera back in 2019. And we knew at that time that was going to be a lower gross margin business and that was fine. And it's actually grown really well. The team has executed well.

嘿，喬，讓我補充幾件事，因為這是一個很好的問題。 因此，首先，完全同意 Willem 所說的一切，從根本上說，我們有一些增加毛利率的產品線下降得相當顯著和相當迅速。 與此同時，我們看到產品線的強勁增長低於公司平均水平，這對毛利率的影響比我們在一段時間內經歷過的任何事情都要大得多。 也許只是為了從大局的頂部看一秒鐘。

我們的定制業務來自於 2019 年對 Avera 的收購。我們當時知道這將是一個較低的毛利率業務，這很好。 它實際上長得很好。 團隊執行得很好。

It's been a great growth driver for us. And we've been able to -- and in fact, if you look, it's probably grown faster than the overall Marvell portfolio. But at the same time, call it, from 2020 to now, we've actually been able to increase and drive Marvell's gross margins up over that timeframe. So, we've had a balanced portfolio, different product lines and diversified product lines that have a wide range of gross margins that blend to something that's been very, very healthy and in general, been very predictable.

What was -- the change was really the steepness and the breadth of the inventory correction we're dealing with. And so, you have these growth drivers that are still kicking in on ASIC. And then, also carrier, as you point out, has always been a lower gross margin business for us. We've been very transparent about that.

Those are actually continuing to grow through this cycle quite significantly. And then, again, our highest margin product lines for various reasons, whether it's channel inventory correction or just customers doing their own inventory burn, those have come down a lot. So, that's why we think and we look at the numbers, over the next few quarters, that should start to normalize again. So, I hope that's helpful to provide both the detail and then the bigger picture, Joe.

這對我們來說是一個巨大的增長動力。 我們已經能夠——事實上，如果你看的話，它的增長速度可能比整個 Marvell 產品組合都要快。 但與此同時，從 2020 年到現在，我們實際上已經能夠在那個時間段內增加和推動 Marvell 的毛利率。 因此，我們擁有平衡的產品組合、不同的產品線和多樣化的產品線，這些產品線的毛利率範圍很廣，這些毛利率融合了非常、非常健康且總體上非常可預測的東西。

什麼是 - 變化實際上是我們正在處理的庫存修正的陡度和廣度。 因此，這些增長動力仍在 ASIC 上發揮作用。 然後，正如您指出的那樣，承運人對我們來說一直是毛利率較低的業務。 我們對此非常透明。

這些實際上在這個週期中繼續顯著增長。 然後，由於各種原因，我們利潤率最高的產品線，無論是渠道庫存調整還是客戶自己進行庫存消耗，這些產品線都下降了很多。 所以，這就是為什麼我們認為並且我們會在接下來的幾個季度中查看數字，這些數字應該會再次開始正常化。 所以，我希望這有助於提供細節和大局，Joe。

Joe Moore -- Morgan Stanley -- Analyst

Thank you.

Matt Murphy -- President and Chief Executive Officer

Yep.

Operator

And our next question will come from Matt Ramsay with Cowen. Please go ahead.

Matt Ramsay -- Cowen and Company -- Analyst

Thank you very much, guys. Good afternoon. Matt, you guys talked about maybe the change in timing and the push out a bit of the cloud-optimized $400 million for this year. But when you look into next year, that $800 million that you guys have talked about for a while is obviously not just one customer or one program, right? And all of these hyperscale folks are going through different architecture changes, periods of digestion and you can -- there's a number of words probably to characterize it.

So, I guess what I'm trying to get at is if things are delayed a couple of quarters and the early ramp of early programs, how are you thinking about that $800 million next year? Are there some programs that are pushed a bit, some that are still on time? And maybe you could just -- maybe walk through some of that dynamic? And then, just a real quick clarification on a question that Joe asked. As we ramp these cloud optimized solutions, are those going to be accretive to gross margin specifically? Maybe you could address that a bit. Thank you.

非常感謝你們。 下午好。 馬特，你們談到了時間的變化，以及今年推出了一些針對雲優化的 4 億美元。 但是當你展望明年時，你們討論了一段時間的 8 億美元顯然不僅僅是一個客戶或一個程序，對吧？ 所有這些超大規模的人都在經歷不同的架構變化，消化期，你可以 - 可能有很多詞來描述它。

所以，我想我想知道的是，如果事情被推遲幾個季度並且早期計劃提前啟動，你如何看待明年的 8 億美元？ 是否有一些節目被推遲了一些，一些仍然準時？ 也許你可以 - 也許走過一些動態？ 然後，對 Joe 提出的一個問題進行真正的快速澄清。 當我們推出這些雲優化解決方案時，這些解決方案是否會特別增加毛利率？ 也許你可以稍微解決一下。 謝謝。

Matt Murphy -- President and Chief Executive Officer

Sure. So, for next year, I'd say my high-level answer is it's too early to call. And you kind of nailed it. I mean, some of the programs are tracking as we thought, some even might be a little bit ahead.

Some have pushed out more than we thought. So, the net effect for this year, we're just trying to call it as we see it today on the shift. Now, for next year, I don't know that it just keeps sliding. I think some of these are going to ramp at their own pace.

And quite frankly, it's too early to call it and to understand what's going to happen four or five quarters from now, given how much is changing in the near term. I guess I'm reticent to try to provide any more precision there. I mean, I think if you want to be conservative, you could just sort of keep shifting it out a little bit, but I think there's still a call option for growth for Marvell next year in this area, but we have to see how these programs play out. And I think on the question of the margins, it really depends on the program.

當然。 所以，對於明年，我會說我的高級回答是現在打電話還為時過早。 你有點成功了。 我的意思是，有些程序正在按照我們的想法進行跟踪，有些甚至可能會提前一點。

有些人推出的比我們想像的要多。 所以，今年的淨效應，我們只是想把它稱為我們今天在轉變中看到的那樣。 現在，對於明年，我不知道它會一直下滑。 我認為其中一些將按照自己的節奏發展。

坦率地說，考慮到近期發生的變化有多大，現在就斷言並了解四五個季度後會發生什麼還為時過早。 我想我不願嘗試在那裡提供更精確的信息。 我的意思是，我認為如果你想保守一點，你可以稍微將它移開一點，但我認為 Marvell 明年在這一領域仍有增長的看漲期權，但我們必須看看這些如何 節目播出。 我認為關於利潤率的問題，這實際上取決於程序。

They're not all the same and some are more custom in nature that would be more traditional profile. Some are higher. But we still see the blend for the overall company returning back to its toward the low end of the range this year, and then we're going to keep driving it toward our long-term model in the next year. So at this point, I think it's too early to call and kind of infer what that the gross margins of those programs would be and then when they ramp versus what's going to happen next year.

So as we get through the year, I think, Matt, we can give you more precision on that. But we're not changing our long-term growth model at this point in terms of the financial model, whether it's gross margins or long-term revenue growth and operating margins.

它們並不完全相同，有些本質上更符合習慣，更傳統。 有些更高。 但我們仍然看到今年整個公司的混合回歸到該範圍的低端，然後我們將在明年繼續推動它走向我們的長期模式。 因此，在這一點上，我認為現在就預測這些項目的毛利率是多少以及它們何時會與明年將要發生的事情相比還為時過早。

所以當我們度過這一年時，我想，馬特，我們可以讓你更準確地了解這一點。 但就財務模型而言，我們目前並沒有改變我們的長期增長模式，無論是毛利率還是長期收入增長和營業利潤率。

Matt Ramsay -- Cowen and Company -- Analyst

Thanks, Matt. I appreciate the color.

Matt Murphy -- President and Chief Executive Officer

Yep.

Operator

Our next question comes from Tore Svanberg with Stifel. Please go ahead.

Jeremy Kwan -- Stifel Financial Corp. -- Analyst

Yes. Good afternoon. This is Jeremy calling in for Tore. I guess I want to focus in a little bit on the custom silicon.

It sounds like this business has proven more resilient than other areas of the data center. Is this a function of the nature of those programs and the NRE investments in your customers that may and maybe you get better visibility in true end demand? And also, is this resiliency reflected in some of your ongoing current custom programs, maybe more specifically comparing the pushouts here relative to rest of the data center business?

是的。 下午好。 我是 Jeremy 為 Tore 打電話。 我想我想稍微關註一下定制芯片。

聽起來這項業務已證明比數據中心的其他領域更具彈性。 這是這些計劃的性質和對您的客戶的 NRE 投資的功能，可能並且您可能會更好地了解真正的最終需求嗎？ 而且，這種彈性是否反映在您當前正在進行的一些自定義程序中，也許更具體地說，比較這里相對於其他數據中心業務的推出？

Matt Murphy -- President and Chief Executive Officer

Sure. Yes, a couple of things that are going on. I think as I said, one, because that business and team has done really well in terms of overall ASIC growth, those programs tend to still be ramping. So there's not a lot of inventory that's been built that's been part of the growth.

So that would explain some of it. But I'd also note that the breadth of the engagements we have in this traditional custom area, our data center, but they're also in carrier and they're also in enterprise. And so, as Willem indicated, even within the enterprise segment, we've had some mix shift there just with the traditional merchant products, which are much higher gross margin coming down and then some of the ASIC stuff ramping up. So again, I think this is all going to get normalized over time.

But certainly, because of the growth in that area, it's proven to be very resilient. And I think some of it is maybe because sure, we've gotten NRE. You get -- I think there's just -- historically, that team has had a -- those -- that type of business has been one that's been, I think, a little bit easier to plan. It seems to be a little bit more predictable, I don't know.

But I think in general, it's mostly because they're new programs ramping.

當然。 是的，有幾件事正在發生。 我認為，正如我所說，第一，因為該業務和團隊在整體 ASIC 增長方面做得非常好，所以這些項目往往仍在加速發展。 因此，沒有多少庫存是增長的一部分。

這樣就可以解釋其中的一部分。 但我還要指出，我們在這個傳統定制領域（我們的數據中心）中的參與範圍很廣，但它們也在運營商和企業中。 因此，正如 Willem 所指出的那樣，即使在企業領域，我們也只是在傳統的商業產品上進行了一些混合轉變，這些產品的毛利率要高得多，然後一些 ASIC 的東西會增加。 所以，我認為這一切都會隨著時間的推移而正常化。

但可以肯定的是，由於該領域的增長，它被證明是非常有彈性的。 而且我認為其中一些可能是因為我們已經獲得了 NRE。 你得到 - 我認為只是 - 從歷史上看，那個團隊有一個 - 那些 - 我認為那種類型的業務已經變得更容易計劃了。 好像有點預料，不知道。

但我認為總的來說，這主要是因為它們是新項目的興起。

Jeremy Kwan -- Stifel Financial Corp. -- Analyst

And can you talk about the pushouts here relative to the other segments? Have there been any significant changes there?

你能談談這里相對於其他細分市場的推出嗎？ 那裡有什麼重大變化嗎？

Matt Murphy -- President and Chief Executive Officer

Sorry, say that again?

Jeremy Kwan -- Stifel Financial Corp. -- Analyst

I guess, has the custom program has been impacted by the pushouts you're seeing in other areas of data center?

我想，自定義程序是否受到了您在數據中心其他區域看到的推出的影響？

Matt Murphy -- President and Chief Executive Officer

No. I mean, again, I wouldn't say that's a major factor. I mean, again, some of the cloud optimized programs that we talked about, those are custom. But in the short term, the data center impact has really been, again, more driven by storage and the impact on the rest of the portfolio, whether it be custom or optics, or whatever hasn't been as pronounced, but it's still going through its own correction.

不，我的意思是，我不會說這是一個主要因素。 我的意思是，我們談到的一些雲優化程序是定制的。 但在短期內，數據中心的影響確實再次更多地受到存儲的驅動，以及對其他產品組合的影響，無論是定制的還是光學的，或者任何沒有那麼明顯的東西，但它仍在繼續 通過自己的修正。

Jeremy Kwan -- Stifel Financial Corp. -- Analyst

Great. Thank you.

Operator

Our next question will come from Blayne Curtis with Barclays. Please go ahead.

Blayne Curtis -- Barclays -- Analyst

Hey. Thanks for taking my question. I just wanted to go back to -- I just want to understand what your message is on data centers. So the hard drive, it's more of a correction -- inventory correction at your customer.

What are you seeing from just overall data center? Because I thought the message last quarter was the PAM business and switching were actually kind of OK. So, I guess, when you're talking about cloud optimized pushing out and you said data center is softer, I'm trying to understand how those two relate, I guess. And then, you mentioned architecture changes, if you can just elaborate a little more. I'm still kind of confused what you're saying on data center and why that's delaying the cloud ramp.

嘿。 感謝您提出我的問題。 我只是想回到——我只是想了解您關於數據中心的信息。 所以硬盤驅動器，它更像是一種修正——你的客戶的庫存修正。

您從整個數據中心看到了什麼？ 因為我認為上個季度的消息是 PAM 業務和轉換實際上還可以。 所以，我猜，當你談論云優化推出並且你說數據中心更軟時，我想我想了解這兩者之間的關係。 然後，你提到了架構變化，如果你能再詳細說明一下的話。 我仍然對你在數據中心所說的內容以及為什麼這會延遲雲計算感到困惑。

Matt Murphy -- President and Chief Executive Officer

Sure. Maybe, I'll break it into two pieces. So let's go back to -- because I think there's two separate issues we're talking about. So last quarter, when we signaled the weakness in data center, it was very pronounced in storage.

And we also said we were starting to see signs of inventory correction on the rest of the portfolio, but it was more muted. And at that time, our expectation was that storage most likely was going to at least flat now, maybe go down a little bit more. And then, there'll be, again, a continued more mild correction. I think what's happened is, the data center -- the storage in data centers continue to need more time to correct.

當然。 也許，我會把它分成兩部分。 那麼讓我們回到——因為我認為我們正在談論兩個不同的問題。 所以上個季度，當我們指出數據中心的弱點時，它在存儲方面非常明顯。

我們還表示，我們開始看到其餘投資組合出現庫存調整的跡象，但更為溫和。 當時，我們的預期是存儲現在很可能至少會持平，也許還會下降一點。 然後，將再次出現持續的更溫和的修正。 我認為發生的事情是，數據中心——數據中心的存儲繼續需要更多時間來糾正。

So that's declined again in the Q1 guide. And then, I would say, the rest of the portfolio has also -- is now seeing more of a correction needed than we thought last quarter. OK. So that's in the short term right now, Blayne.

So, yes, storage, down a little bit more and then the rest of the portfolio, including those other product lines you mentioned, in aggregate. I mean, within underneath, some of them are moving up and down, but the net effect is that there is an inventory correction going on in data center across the portfolio. Independent of that, we -- is a separate issue. We were -- we have been anticipating a ramp of our cloud optimized design wins, which have been gathered over the last few years.

所以這在第一季度指南中再次下降。 然後，我要說的是，投資組合的其餘部分也——現在看到比我們上個季度想像的更多的修正。 好的。 所以這是短期的，Blayne。

所以，是的，存儲下降了一點，然後是投資組合的其餘部分，包括你提到的其他產品線，總的來說。 我的意思是，在下面，其中一些正在上下移動，但最終結果是整個投資組合的數據中心正在進行庫存修正。 除此之外，我們 - 是一個單獨的問題。 我們 - 我們一直期待我們的雲優化設計獲勝，這是在過去幾年中收集的

That's still going to happen this year, but it's been -- some of it's been pushed out by a couple of quarters. So we still see that kicking in at the end of the year and adding to growth. But that's sort of separate than any inventory correction. That's just program execution by our customers, timing of their ramps, etc.

And then, on the third point, which is just, all we were pointing out on the architecture stuff was that, as we see the growth in AI-based systems and AI-based clusters and AI-centric data centers, we think longer term, I mean, that's now outside the window we're talking about here, whether it's this year or next year, that that's going to be a significant growth trend and that's going to require both cloud-optimized silicon, as well as our high-speed optics. So I think three pieces to it, short term, medium term and long term.

今年仍然會發生這種情況，但它已經 - 其中一些已經被推遲了幾個季度。 因此，我們仍然看到這種情況在年底開始出現並增加了增長。 但這與任何庫存修正都不同。 這只是我們客戶的程序執行、他們的坡道時間等。

然後，關於第三點，我們在架構方面所指出的是，當我們看到基於 AI 的系統和基於 AI 的集群以及以 AI 為中心的數據中心的增長時，我們認為從長遠來看 ，我的意思是，現在我們在這裡談論的窗口之外，無論是今年還是明年，這將是一個顯著的增長趨勢，這將需要雲優化矽，以及我們的高- 速度光學。 所以我認為它分為三個部分，短期、中期和長期。

Blayne Curtis -- Barclays -- Analyst

Thanks a lot.

Matt Murphy -- President and Chief Executive Officer

Very dynamic overall, Blayne, I guess, that's the punch line.

Blayne Curtis -- Barclays -- Analyst

Thanks.

Matt Murphy -- President and Chief Executive Officer

Yep.

Operator

And our next question will come from Christopher Rolland with Susquehanna. Please go ahead.

Christopher Rolland -- Susquehanna International Group -- Analyst

Hey, guys. Thanks for the question. I guess, my first is the $400 million to $800 million regardless of the pushouts. Do you have any visibility into the composition, or can you elaborate on the composition of those wins around maybe percentage storage versus network versus compute and maybe even optics in there as well, anything else that you can offer? Just any visibility into the composition would be great.

大家好。 謝謝你的問題。 我想，我的第一個目標是 4 億到 8 億美元，無論是否推出。 您是否對組成有任何了解，或者您能否詳細說明這些勝利的組成，可能是存儲百分比、網絡百分比、計算百分比，甚至還有光學器件，您可以提供其他任何東西嗎？ 只是對構圖的任何可見性都會很棒。

Matt Murphy -- President and Chief Executive Officer

Yeah. Hey Chris, there's a couple of challenges there. So one is there's a very high level of customer sensitivity on the nature of these programs. These are all NDA based.

They don't really want us discussing those. Ideally, over time, maybe we can get something more public out there, but until my customers give you the go ahead, I'm not going to do it. All I'd say is just in general, maybe to try to be helpful; it's really not much storage in there. This is really more custom compute, custom networking, accelerators, offload that type of thing.

That would be the bulk of it, I would say, those types of applications.

是的。 嘿克里斯，這裡有幾個挑戰。 因此，一個是客戶對這些程序的性質非常敏感。 這些都是基於 NDA 的。

他們真的不希望我們討論這些。 理想情況下，隨著時間的推移，也許我們可以公開一些東西，但在我的客戶同意之前，我不會這樣做。 我想說的只是一般情況，也許是為了提供幫助； 裡面真的沒有多少存儲空間。 這實際上是更多的自定義計算、自定義網絡、加速器、卸載這類東西。

這將是其中的大部分，我會說，那些類型的應用程序。

Christopher Rolland -- Susquehanna International Group -- Analyst

OK.

Matt Murphy -- President and Chief Executive Officer

And as we go along, Chris, I think we get closer to these product ramps and things, I'm obviously hoping for our investors, we can continue to provide more transparency as these things materialize, but it's a bit early to talk about that mix. And I'd prefer to do that as we got closer.

克里斯，隨著我們的進展，我認為我們離這些產品提升和其他事情越來越近了，我顯然希望我們的投資者能夠在這些事情成為現實時繼續提供更多的透明度，但現在談論這個還為時過早 混合。 當我們越來越近時，我更願意這樣做。

Christopher Rolland -- Susquehanna International Group -- Analyst

Sure. If you didn't like that question, you probably will like this one.

Matt Murphy -- President and Chief Executive Officer

I would love your questions, Chris. Go ahead.

Christopher Rolland -- Susquehanna International Group -- Analyst

In terms of AI, you talked about networking, you talked about optics there and that all makes sense. But I was wondering if you had any ability to also provide compute. At one point on your road map, you had AI cards. I think you kind of tabled that effort.

But yeah, I would love to know if you can provide compute into AI? And then, the second part of that question is, are you willing to guide beyond the $800 million? Do you have visibility into, let's say, beyond $1 billion as it's been some time since you gave that $400 million to $800 million number?

在 AI 方面，你談到了網絡，在那裡談到了光學，這些都說得通。 但我想知道您是否有能力同時提供計算。 在你的路線圖上的某個時刻，你有 AI 卡片。 我認為您已經做出了努力。

但是，是的，我很想知道您是否可以為 AI 提供計算？ 然後，該問題的第二部分是，您是否願意指導超過 8 億美元？ 你是否了解超過 10 億美元的情況，因為你給出 4 億到 8 億美元的數字已經有一段時間了？

Matt Murphy -- President and Chief Executive Officer

OK. Maybe just real high-level answer to both of those, I think on the AI one, I think that is and will be an opportunity for custom and for cloud-optimized applications. I think that's a real thing, meaning people will want to use things that are merchant. They want to use some of their own special things and probably in combination.

So I think that's an opportunity that's part of the potential. And then, as far as the long-term peak revenue from those, the wins, $400 million to $800 million, yeah, I think we said when we won them, it would keep going because typically, you don't hit peak until many years into the ramp. So with the design wins intact, the $800 million becomes larger over time. How big that is? I think it's too early to call.

But certainly, it would exceed the $800 million on an annual basis just because really, that was our view at the time of the year one, year two ramp would look something like that.

好的。 也許只是對這兩個問題的真正高級回答，我認為在 AI 方面，我認為這是並將成為定制和雲優化應用程序的機會。 我認為這是真實的，這意味著人們會想要使用商業的東西。 他們想使用他們自己的一些特別的東西，並且可能組合使用。

所以我認為這是一個機會，也是潛力的一部分。 然後，就那些勝利帶來的長期峰值收入而言，4 億到 8 億美元，是的，我想我們說過，當我們贏得它們時，它會繼續下去，因為通常情況下，你不會達到峰值，直到許多 年進入斜坡。 因此，在設計完好無損的情況下，8 億美元會隨著時間的推移變得越來越大。 那有多大？ 我認為現在打電話還為時過早。

但可以肯定的是，它每年會超過 8 億美元，因為實際上，這是我們在第一年時的看法，第二年的斜坡看起來就像那樣。

Christopher Rolland -- Susquehanna International Group -- Analyst

Awesome. Thank you, Matt.

Matt Murphy -- President and Chief Executive Officer

Yep.

Operator

And our next question will come from Karl Ackerman with BNP. Please go ahead.

Karl Ackerman -- Exane BNP Paribas -- Analyst

Yes. Thank you. I wanted to delve into data center, if I could, for a second there. It sounds like some of the softness relates to rebalancing of optical modules at hyperscalers, and that's just -- that's not a -- that's more of an industry comment, not just a company specific comment.

But I guess for Marvell, does that bleed into the July quarter as well? And then, bigger picture, how are you thinking about the 400-gig upgrade cycle for 2023 despite some of the near-term challenges. Does that influence your bigger picture view in terms of 2023 and then 2024, given the broad product portfolio that you have to address both 400 gig and 800 gig? Thank you.

是的。 謝謝。 如果可以的話，我想深入研究一下數據中心。 聽起來有些軟弱與超大規模光模塊的重新平衡有關，這只是——那不是——更多的是行業評論，而不僅僅是公司特定的評論。

但我想對於 Marvell 來說，這是否也會影響到 7 月季度？ 然後，從更大的角度來看，儘管存在一些近期挑戰，您如何看待 2023 年的 400 兆升級週期。 考慮到您必須同時處理 400 gig 和 800 gig 的廣泛產品組合，這是否會影響您在 2023 年和 2024 年的大局觀？ 謝謝。

Matt Murphy -- President and Chief Executive Officer

Yes, I think at this point, Karl, you're right. I mean, we -- part of the inventory digestion we're seeing is our PAM products that sell to the optical module guys, and that's a business where, again, we're kind of one step back in the supply chain. So, we would see that and we are seeing that and feeling it. When exactly that recovers, which quarter, it's going to happen in the next few quarters.

The question is next -- this quarter, next quarter or the quarter after, but it's in that probably that timeframe because the underlying demand is still strong. And then, I think your other question was on -- and then, of course, the headwind we face now becomes a tailwind in the second half, if that's the case. I think your other question, was it on the 400-gig ZR or was it on the 400-gig inside data center PAM--?

是的，我認為在這一點上，卡爾，你是對的。 我的意思是，我們 - 我們看到的部分庫存消化是我們的 PAM 產品，這些產品出售給光學模塊人員，這是一項業務，我們在供應鏈中又退了一步。 所以，我們會看到，我們正在看到並感受到它。 究竟什麼時候恢復，哪個季度，它將在接下來的幾個季度發生。

下一個問題是——這個季度、下個季度或之後的一個季度，但可能是在那個時間框架內，因為潛在需求仍然強勁。 然後，我想你的另一個問題是——然後，當然，如果是這樣的話，我們現在面臨的逆風在下半場變成了順風。 我想你的另一個問題是在 400-gig ZR 上還是在 400-gig 內部數據中心 PAM 上？

Karl Ackerman -- Exane BNP Paribas -- Analyst

Your broader portfolio on 400-gig and 800-gig and I guess, how you think about the upgrade cycle because obviously, softer the market near-term, but how do you think about your portfolio broadly as you think about that upgrade cycle over the next couple of quarters? Thanks.

您在 400-gig 和 800-gig 上的更廣泛的投資組合，我想，您如何看待升級週期，因為顯然，近期市場疲軟，但是當您考慮整個升級週期時，您如何廣泛地考慮您的投資組合 接下來的幾個季度？ 謝謝。

Matt Murphy -- President and Chief Executive Officer

Yes, I mean, we tend to think of the upgrade cycle as quite frankly a multiyear rollout, right? We had a very strong year last year, and it's a blend of products, right, from 200, 400, 800 inside data center, 400 ZR between data centers and that 1.6T announced. So, I'd say that the demand and the shift to PAM continues at a very strong rate. Again, we have some inventory correction in the first half. That's more of a module-related issue.

And again, the slope of the hyperscale cloud guys revenue growth or capex growth kind of dropping, but not declining just not at the same rate of acceleration. So, we think all that works its way through and end consumption continues to grow very strongly last year, this year, and the year after.

是的，我的意思是，坦率地說，我們傾向於將升級週期視為多年推出，對嗎？ 去年我們的表現非常強勁，它是各種產品的混合體，從數據中心內部的 200、400、800，數據中心之間的 400 ZR 到宣布的 1.6T。 因此，我想說需求和向 PAM 的轉變將繼續以非常強勁的速度進行。 同樣，我們在上半年進行了一些庫存調整。 這更像是一個與模塊相關的問題。

再一次，超大規模雲計算的收入增長或資本支出增長的斜率有點下降，但不會下降，只是加速速度不同。 因此，我們認為所有的事情都會順利進行，最終消費在去年、今年和後年繼續強勁增長。

Karl Ackerman -- Exane BNP Paribas -- Analyst

Thank you.

Operator

And our next question will come from Quinn Bolton with Needham & Company. Please go ahead.

Quinn Bolton -- Needham and Company -- Analyst

Hey, Matt. I guess one clarification and then one question. The clarification, just you talked about the growth in -- driven by AI clusters for high-speed optics. Do you guys -- are you impartial to whether those AI clusters are connected through Ethernet or InfiniBand because I think different hyperscalers have different fabrics for those AI clusters? And then, my question is, you guys have talked about the growth in PAM.

We've got the OFC show next week, and I think there's more talk now about the linear drive modules where you don't need the DSP or the DSPs and other parts of the line card. I'm just kind of curious if you could address -- do you see any threat from direct driver, linear drive modules going forward to that PAM4 business? Thanks.

嘿，馬特。 我想先澄清一個問題再問一個問題。 澄清一下，剛才你談到了增長——由高速光學的 AI 集群驅動。 你們這些 AI 集群是通過以太網還是 InfiniBand 連接，你們是否公正，因為我認為不同的 hyperscalers 對這些 AI 集群有不同的結構？ 然後，我的問題是，你們談到了 PAM 的增長。

下週我們將參加 OFC 展會，我認為現在有更多關於線性驅動模塊的討論，您不需要 DSP 或 DSP 和線卡的其他部分。 我只是有點好奇，如果你能解決——你是否看到直接驅動器、線性驅動器模塊對 PAM4 業務的任何威脅？ 謝謝。

Matt Murphy -- President and Chief Executive Officer

Sure. Yes. No. So, it's an exciting time for optics at this point given we've got OFC coming up next week.

Yes, on the first one, in general, we're agnostic to both of those. We tend to just partner closely with the customers and design the solutions they need. So, it's the fundamental IP that really matters. As it relates to the disruptive technologies that are lurking around out there, I think that's been the history of optics.

Our view is pluggables is going to be the high-volume de facto standard for many years to come. And certainly, we're encouraged by showing demonstrations of our new product at 1.6T, you had OFC, there's real people building systems around this. And of course, the ramp last year of 800 gig gives us confidence under the ramp of 1.6T. So we're paying attention to all of it, Quinn, I would say.

當然。 是的。 不，所以，鑑於我們下週即將推出 OFC，目前對於光學來說是一個激動人心的時刻。

是的，對於第一個，一般來說，我們對這兩個都不可知。 我們傾向於與客戶緊密合作並設計他們需要的解決方案。 因此，真正重要的是基礎 IP。 由於它與潛伏在那裡的顛覆性技術有關，我認為這就是光學的歷史。

我們的觀點是，可插拔將成為未來許多年的高容量事實上的標準。 當然，我們對展示 1.6T 新產品的演示感到鼓舞，你有 OFC，有真人圍繞它構建系統。 當然，去年 800 gig 的增長讓我們對 1.6T 的增長充滿信心。 所以我們正在關注所有這些，Quinn，我會說。

We've got a really excellent team that understands the trade-offs and understands the various architectures. But right now, we feel very confident in our approach and our solution set. And I think coupled with our switch platform, which has now also been announced, it's really a nice combination of the assets of Marvell plus Inphi plus Innovium, all coming together in a single platform. So more to come on that.

And certainly, we're happy to debrief with you and the rest of the team at and after OFC. I think there's going to be a lot of activity there.

我們有一個非常優秀的團隊，他們了解權衡取捨並了解各種架構。 但是現在，我們對我們的方法和解決方案集非常有信心。 而且我認為再加上我們現在也已經宣布的開關平台，它真的是 Marvell 加上 Inphi 和 Innovium 資產的完美組合，所有這些都匯集在一個平台上。 所以還有更多的事情要做。

當然，我們很高興在 OFC 期間和之後向您和團隊其他成員匯報情況。 我認為那裡會有很多活動。

Quinn Bolton -- Needham and Company -- Analyst

Thank you, Matt.

Operator

And our next question will come from Srini Pajjuri with Raymond James. Please go ahead.

Srini Pajjuri -- Raymond James -- Analyst

Thank you. Hi, Matt. Question on your wireless business. Obviously, it's good to see that business doing quite well.

Some of your peers have reported some weakness in that market. Just curious as to what's driving strength for you in particular? And then, as you look out to the next few quarters, can you -- I mean, to the extent that you have visibility, can you talk about the sustainability of that business? Because every time we see 20%, 25% growth in any semiconductor business, we do start to worry about potential inventory build. So if you can talk about what you're seeing out there, that will be helpful. Thank you.

謝謝。 嗨，馬特。 關於您的無線業務的問題。 顯然，很高興看到該業務做得很好。

您的一些同行報告說該市場存在一些疲軟。 只是想知道什麼對您有特別的驅動力？ 然後，當你展望接下來的幾個季度時，你能——我的意思是，就你的知名度而言，你能談談該業務的可持續性嗎？ 因為每當我們看到任何半導體業務增長 20%、25% 時，我們就會開始擔心潛在的庫存增加。 所以如果你能談談你在那裡看到的東西，那會很有幫助。 謝謝。

Matt Murphy -- President and Chief Executive Officer

Sure. Yes. No, I think Srini, I think the big issue, especially with maybe some of the more larger incumbent players that have large carrier communications businesses, especially in the wireless area, they tend to be -- have a combination of some legacy, let's call it, like 4G LTE type of solutions, and then they've got new 5G chips that are ramping up, and then there's some mix of the two. But as you can see with carrier spending, the bulk of it in wireless is just pretty much all going to 5G at this point.

And so, from a Marvell perspective, we had very little legacy before on the older standard and 5G is really where all the content gains rolled in. So that's continued to be a nice growth driver for us as a result. And I'd say on top of that, you've been around the block enough to see this as well, I mean, carrier tends to be a very lumpy business. So it doesn't really historically ever move in a very linear fashion that tends to have be a little bursty at times.

當然。 是的。 不，我認為是斯里尼，我認為這是一個大問題，尤其是對於一些擁有大型運營商通信業務的更大的現任玩家，尤其是在無線領域，他們往往是 - 有一些傳統的組合，讓我們打電話 它，就像 4G LTE 類型的解決方案，然後他們有了新的 5G 芯片，這些芯片正在加速發展，然後是兩者的混合。 但正如您從運營商支出中看到的那樣，目前無線領域的大部分支出幾乎都用於 5G。

因此，從 Marvell 的角度來看，我們之前在舊標准上的遺產很少，而 5G 確實是所有內容收益的來源。因此，這對我們來說仍然是一個很好的增長動力。 而且我要說的是，你已經在街區附近看到了這一點，我的意思是，承運人往往是一個非常不穩定的行業。 因此，從歷史上看，它並沒有真正以非常線性的方式移動，有時往往會有點突發。

And certainly, we're happy with the growth we're seeing, and we think that that's -- overall, this year is going to be a growth year for us in 5G. But certainly, it can be a little bit lumpy. But I would say that this is not something that overall is kind of going according to plan in terms of the designs we won, what the content we could capture would be. And finally, if you just look and we said it in the prepared remarks, last year, we crossed the $600 million mark in 5G, which was a bogey we had set several years ago.

We haven't time bounded by the way, like it's going to be in this exact year, this exact four quarters. We had left it a little bit open, but we're pretty happy that really just a few years after we talked about that goal, we were able to achieve it last year. So yes, there's some bright spots for sure, in the Marvell portfolio. 5G is one of them and obviously, automotives and other, and there's some good things going on.

We just have to work through the issues in some of the other end markets. And with that, I think, Ashish, is that our last question?

當然，我們對我們所看到的增長感到滿意，我們認為那是——總的來說，今年將是我們在 5G 方面的增長年。 但可以肯定的是，它可能有點凹凸不平。 但我要說的是，就我們贏得的設計、我們可以捕獲的內容而言，這並不是總體上按計劃進行的事情。 最後，如果你看一下，我們在準備好的發言中說過，去年，我們在 5G 方面突破了 6 億美元大關，這是我們幾年前設定的一個柏忌。

順便說一句，我們沒有時間限制，就像它會在這一年，這四個季度一樣。 我們已經讓它有點開放了，但我們很高興在我們談論這個目標後僅僅幾年，我們就能夠在去年實現它。 所以是的，在 Marvell 產品組合中肯定有一些亮點。 5G 就是其中之一，顯然，汽車和其他領域正在發生一些好事。

我們只需要解決其他一些終端市場的問題。 那麼，我想，Ashish，這是我們的最後一個問題嗎？

Ashish Saran -- Senior Vice President, Investor Relations

Yes, it is, Matt. If you can maybe end with some closing remarks, that would be great.

Matt Murphy -- President and Chief Executive Officer

Yes. Perfect. Well, I appreciate everybody's time on the call today. When I look back at our last fiscal year, it was a great success for Marvell.

I think it -- and I was reflecting back, looking at where we were back, let's say, in 2020, during the pandemic, we were in the process of combining with Inphi and I sort of look a few years later, and I think in fiscal 2023, we -- ourselves, Inphi and also, by the way, the Innovium team we brought in, really everybody executed extremely well. It was very, very strong growth, very strong margins, great growth overall. Certainly, we're going through, now after several years of extremely strong growth, a correction in inventory, that's more pronounced in some markets than others. We're managing through that very prudently and expeditiously and doing that also in a partnership model with our customers, to where we're trying to understand their real demand and get back to a point where we're shipping back to real demand.

是的。 完美的。 好吧，我感謝大家今天的電話會議。 回顧上一財年，Marvell 取得了巨大的成功。

我認為 - 我正在反思，看看我們回到了哪裡，比方說，在 2020 年，在大流行期間，我們正在與 Inphi 合併，我想幾年後看看，我想 在 2023 財年，我們——我們自己、Inphi，順便說一下，我們引進的 Innovium 團隊，每個人的表現都非常出色。 這是非常非常強勁的增長，非常強勁的利潤率，整體增長非常好。 當然，在經歷了幾年極其強勁的增長之後，我們正在經歷庫存修正，這在某些市場比其他市場更為明顯。 我們正在非常謹慎和迅速地管理這一點，並在與我們的客戶的合作模式中做到這一點，我們試圖了解他們的真正需求，並回到我們回歸實際需求的地步。

At this point, we believe we're shipping below consumption of Marvell products. And so, we want to get back there. And when we do that, it will also lead to the increase in recovery back in the gross margin profile. And then, we can have all of our new wins that we've gotten and all the hard work, our sales team, business unit team has done over the last few years, driving our design win funnel to recognize that growth.

So, I'd say, despite the short-term issues, we think very long term at Marvell, OK? I mean, I'm entering my seventh year as -- actually, about to complete my seventh year as CEO. The prospects for this company are tremendous. We have conviction in our end markets and the long-term opportunity. And the R&D investment that's needed to really execute the programs our customers want to is right in front of us.

在這一點上，我們認為我們的出貨量低於 Marvell 產品的消耗量。 所以，我們想回到那裡。 當我們這樣做時，它也會導致毛利率恢復的增加。 然後，我們可以獲得所有新的勝利，以及我們的銷售團隊、業務部門團隊在過去幾年中所做的所有努力，推動我們的設計勝利漏斗認識到這種增長。

所以，我想說，儘管存在短期問題，但我們從長遠來看在 Marvell，好嗎？ 我的意思是，我進入了我擔任 CEO 的第七個年頭——實際上，即將完成我擔任 CEO 的第七個年頭。 這家公司的前景是巨大的。 我們對我們的終端市場和長期機會充滿信心。 真正執行客戶想要的

We have an opportunity, I think, to really reassess and make sure that we're focused and laser focused on the best opportunities. I think we've made capital allocation from day one, a strategic priority for Marvell. And I believe, we can come through this cycle much -- as a much stronger company with our growth prospects intact and actually have a better long-term opportunity doing really key programs for our customers with the best ROI. So we're going through that whole process now, as we do always, and I feel very good about the future of the company.

So appreciate the time today, everybody, and look forward to catching up post earnings.

我認為，我們有機會真正重新評估並確保我們專注於並專注於最佳機會。 我認為我們從第一天起就進行了資本配置，這是 Marvell 的戰略重點。 而且我相信，我們可以度過這個週期——作為一家更強大的公司，我們的增長前景完好無損，實際上有更好的長期機會為我們的客戶提供最佳投資回報率的真正關鍵項目。 所以我們現在正在經歷整個過程，一如既往，我對公司的未來感到非常滿意。

所以感謝大家今天的時間，並期待趕上後期收益。