Marvell Technology's stock rose nearly 11% after providing an upbeat multi-year forecast, projecting revenue growth of over 30% for fiscal 2027 and nearly 40% to about $15 billion by fiscal 2028. This surge reflects booming demand for its custom AI chips and high-speed interconnect technology, driven by massive capital spending on AI infrastructure by major cloud companies.
The company's strong outlook follows similar bullish signals from the AI chip sector, including peer Broadcom, indicating demand is expanding beyond market leader Nvidia. Analysts highlight Marvell's strategic focus on components that link chips within AI systems, positioning it to benefit as cloud providers build larger AI clusters.
Key drivers include rising demand for Marvell's custom AI processors (ASICs) and data-center products, with the data-center segment already showing a 21% revenue increase to $1.65 billion. The company's valuation remains below that of some peers, trading at a forward P/E ratio of 19.99 compared to Broadcom's 25.31.
Main Topics: Marvell Technology's stock performance and financial forecast; booming demand for AI infrastructure and custom chips; industry context and competitive positioning; specific product drivers (ASICs, interconnects, data-center business).
Marvell Technology rose nearly 11% in early trading on Friday, as its upbeat multi-year forecast underscored booming demand for custom AI chips from large technology companies.
The jump could add more than $10 billion to the company's market value if gains âhold.
Marvell's strong â forecast comes â on the heels of peer Broadcom projecting more than $100 billion in AI-chip sales next year, signaling demand is spreading beyond AI bellwether Nvidia.
While both Marvell and Broadcom develop tech that enables high-speed connections between processors, Citigroup analysts said Marvell's focus on linking chips more closely within a single system could expand its role as cloud companies build larger â AI clusters.
Marvell âsaid fiscal 2028 revenue will rise nearly 40% to about $15 billion, topping the $12.92 billion LSEG consensus. It also lifted its â fiscal 2027 view to 30%-plus growth, nearing $11 billion.
Capital spending on AI infrastructure by Alphabet, Meta, Microsoft and Amazon is expected to exceed $630 billion this year.
That outlay is boosting demand for Marvell's custom ASICs and high-speed interconnects that shuttle data between AI processors, memory and servers, and it is "still growing massively," said the company's president and COO, Chris Koopmans.
ASICs, or application-specific integrated circuits, are chips âtailored for a single function or custom workload, offering higher efficiency than general-purpose graphics processing units.
Analysts say Marvell is âset for âa strong run â in its data-center business, helped by rising demand for its digital signal processors that power high-speed optical links in AI servers and a multiyear ramp-up âin custom AI processors running ahead of expectations.
Revenue in the data-center segment, its largest business, rose 21% to $1.65 billion, compared with estimates of $1.64 billion.
Marvell trades at a 12-month forward price-to-earnings ratio of 19.99, compared with Broadcom's 25.31, LSEG data showed.
The jump could add more than $10 billion to the company's market value if gains âhold.
Marvell's strong â forecast comes â on the heels of peer Broadcom projecting more than $100 billion in AI-chip sales next year, signaling demand is spreading beyond AI bellwether Nvidia.
While both Marvell and Broadcom develop tech that enables high-speed connections between processors, Citigroup analysts said Marvell's focus on linking chips more closely within a single system could expand its role as cloud companies build larger â AI clusters.
Marvell âsaid fiscal 2028 revenue will rise nearly 40% to about $15 billion, topping the $12.92 billion LSEG consensus. It also lifted its â fiscal 2027 view to 30%-plus growth, nearing $11 billion.
Capital spending on AI infrastructure by Alphabet, Meta, Microsoft and Amazon is expected to exceed $630 billion this year.
That outlay is boosting demand for Marvell's custom ASICs and high-speed interconnects that shuttle data between AI processors, memory and servers, and it is "still growing massively," said the company's president and COO, Chris Koopmans.
ASICs, or application-specific integrated circuits, are chips âtailored for a single function or custom workload, offering higher efficiency than general-purpose graphics processing units.
Analysts say Marvell is âset for âa strong run â in its data-center business, helped by rising demand for its digital signal processors that power high-speed optical links in AI servers and a multiyear ramp-up âin custom AI processors running ahead of expectations.
Revenue in the data-center segment, its largest business, rose 21% to $1.65 billion, compared with estimates of $1.64 billion.
Marvell trades at a 12-month forward price-to-earnings ratio of 19.99, compared with Broadcom's 25.31, LSEG data showed.
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