Marvell raises 2028 revenue forecast on strong AI data center demand
Matt Murphy, Chairman and CEO of Marvell Technology, speaks to attendees during the Marvell Technology Investor Day in New York City, US, October 6, 2026. REUTERS/Eduardo Munoz
Oct 6 : Marvell Technology raised its fiscal 2028 revenue forecast to about $20 billion on Tuesday, above Wall Street estimates, as demand for its custom data center chips grows along with a surge in AI spending.
Shares of the Santa Clara, California-based company rose about 6 per cent, while those of rival Broadcom advanced about 4 per cent.
"It took a long time to get this company on this path and to be a technology leader," Chris Koopmans, Marvell's president and chief operating officer, said in an interview. "We have a track record of doing what we said we're going to do."
Marvell outlined a strategy in 2021 centered on custom and cloud-optimized silicon — chips specifically designed for use in data centers. It has been one of the biggest beneficiaries of the AI infrastructure boom since then and projects it will generate $12 billion in custom chip revenue in fiscal 2029, up from a prior target of $10 billion.
The company's custom chip business has become a major growth engine, with technology companies developing in-house AI processors to reduce reliance on Nvidia chips. Marvell's stock has more than tripled in value so far this year.
Marvell disclosed a deal with Alphabet's Google in August that could generate up to $120 billion in sales through fiscal 2033, if performance milestones are achieved.
That same month, it raised its full-year revenue outlook to about $18 billion from $16.5 billion.
On Tuesday, Marvell forecast fiscal 2031 revenue of $70 billion to $90 billion. At $80 billion, the midpoint of that range exceeds Wall Street estimates of $46.85 billion, according to four analysts polled by Visible Alpha.
Analysts were expecting revenue of $18.2 billion for 2028, according to data compiled by LSEG.
