Reflecting increased demand for optical interconnects and switches; target raised by $2 billion from previous estimate.
Custom chip segment poised for expansion; revenue target set at over $12 billion for fiscal 2029.
Marvell Technology has raised its revenue forecast for fiscal 2028 to approximately $20 billion, fueled by expanding demand for optical connectivity and switches used in artificial intelligence (AI) data centers. As connectivity technology becomes increasingly critical for the rapid transmission of massive datasets across AI infrastructure, expectations for the company’s semiconductor business have intensified.
During an investor event held in New York on the 6th (local time), Marvell announced that it had increased its fiscal 2028 revenue guidance by $2 billion from its previous target of $18 billion. Marvell CEO Matt Murphy attributed the upward revision to surging demand for the company's optical and switching product lines.
These components serve as the vital infrastructure facilitating data movement between processors, memory, and servers within data centers. As the scale of AI computing grows, the necessity for high-speed data transmission and enhanced power efficiency becomes paramount. Marvell addresses these requirements through its portfolio of optical semiconductors, network switches, and memory connectivity solutions.
The rising demand for connectivity is also accelerating the company’s data center revenue growth trajectory. Marvell now projects data center revenue for fiscal 2028 to reach approximately $18 billion—accounting for roughly 90% of total revenue—effectively hitting a milestone a year ahead of its original target for fiscal 2029.
The company further noted that these opportunities are extending into custom-designed semiconductors tailored to individual client specifications. There is a growing trend for customers to seek custom silicon that integrates network, memory, storage, and security functions alongside their primary AI compute chips. Reflecting this, Marvell has raised its fiscal 2029 custom semiconductor revenue target from over $10 billion to more than $12 billion.
With optical connectivity and custom semiconductors serving as core pillars for mid-to-long-term growth, Marvell has set a broader revenue goal of $70 billion to $90 billion for fiscal 2031. Given that fiscal 2026 revenue is expected to be approximately $8.2 billion, the company is targeting an average annual revenue growth rate of roughly 55% to 60% through fiscal 2031.
Management emphasized that these long-term targets are based on business plans tied to existing customers and current product pipelines. The realization of these figures remains contingent upon the successful mass production and scaling of products currently under development. These projections reflect the company's outlook predicated on the execution of these strategic business plans.
Investors reacted positively to the bullish outlook, driving Marvell’s stock price up 5.81% to close at $287.01 on the day of the announcement.
