Direct and Indirect: Who Actually Uses the ChipsNarrow moat

In fiscal 2026 Marvell billed $4,630.4 million to direct customers (57%) and $3,564.2 million to distributors (43%)¹. Two years earlier the split was 63% and 37%. The channel is growing faster than the direct business.

That matters because of who sits behind it. Marvell's direct customers are largely OEMs and original design manufacturers — the companies that build the finished equipment — while the hyperscalers whose names appear in every discussion of this company frequently buy through those manufacturers and through distributors rather than on a direct invoice. Nvidia's filings describe the same structure from the other side, and the consequence is identical: the concentration table understates true end-customer dependency, because one end customer's demand can arrive through several named counterparties at once.

So the disclosed 82% from ten customers is a floor, not a ceiling, on how concentrated the real demand is. It is entirely possible that a smaller number of end customers drives more of the revenue than any single line in the filing shows — and neither Marvell nor its investors can resolve that from the outside.

The practical consequence is forecasting. When demand from an end customer turns, it reaches Marvell through inventory decisions at intermediaries, which is slower and lumpier than a direct order book. Watch the direct-versus-distributor mix: a rising channel share means less visibility exactly when the cycle makes visibility most valuable.