Marvell raises 2028 revenue forecast on strong AI data center demand

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 company rose ⁠about 7%, while those ​of rival Broadcom advanced ⁠about 4% in early trading.

Marvell had outlined a strategy ‌centered on custom ‌and cloud-optimized silicon — chips specifically designed for use ⁠in data centers — at ⁠its 2021 investor day. It has been one of the biggest beneficiaries of the AI infrastructure boom since then.

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. The chipmaker'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.

(Reporting ​by Prathik Jayaprakash and Anhata Rooprai in Bengaluru; Editing by ​Joyjeet Das)

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