The company’s updated roadmap places custom chips and connectivity at the center of its long-term growth strategy as AI infrastructure accounts for an ever-larger share of its business.
- Marvell targets more than $12 billion in custom revenue in fiscal 2029.
- Under Marvell’s $80 billion FY31 revenue scenario, the company expects about $37.5 billion to come from its interconnect business.
- Marvell’s new targets build on accelerating artificial intelligence demand.
Marvell Technology Inc. (MRVL) shares jumped nearly 10% on Tuesday after the chipmaker laid out sharply higher long-term revenue targets at its Investor Day, including a path to between $70 billion and $90 billion in annual revenue by fiscal 2031.
The company also raised its fiscal 2028 revenue forecast to about $20 billion from the $18 billion outlook issued in August. That tops the $18.1 billion analyst consensus tracked by FiscalAI. Marvell expects roughly $18 billion of fiscal 2028 revenue to come from its data-center business.
At the time of this writing, MRVL stock was up around 7% and was among the top-trending tickers on Stocktwits.
Marvell’s AI Data Center Targets Move Higher
Marvell said it is targeting more than $12 billion in custom revenue in fiscal 2029, raising a previous target of more than $10 billion.
The new targets build on accelerating artificial intelligence (AI) demand already visible in Marvell’s results. The firm’s fiscal second-quarter (Q2) revenue rose 37% year over year to $2.739 billion, while data-center revenue increased 46% to $2.17 billion.
In August, CEO Matt Murphy said AI-related bookings remained “exceptionally robust,” with strength across connectivity and custom products. At the time, Marvell raised its fiscal 2027 revenue outlook to roughly $12 billion and its fiscal 2028 forecast to $18 billion, setting the stage for Tuesday’s latest increase.
Custom Chips And Interconnect Drive Growth
Marvell’s custom chip business is a key part of its long-term growth plan, with hyperscalers including Alphabet and Amazon among its customers. Marvell sees about $30 billion of fiscal 2031 revenue coming from its custom business, based on an $80 billion company revenue scenario.
The semiconductor firm also expects its interconnect business, which provides networking technology for moving data within and between data centers, to generate about $37.5 billion in revenue in fiscal 2031.
Google Deal Expands Custom Silicon Opportunity
Part of the longer-term custom opportunity comes from Marvell’s expanded agreement with Alphabet Inc.’s (GOOG, GOOGL) Google.
A regulatory filing shows the companies agreed in July to develop custom semiconductor products spanning AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute tied to Google’s Tensor Processing Unit ecosystem.
Marvell also issued Google a warrant for up to roughly 59 million shares. Most of those shares vest in tranches tied to discretionary custom-product purchases, with one tranche vesting for each $500 million in revenue through fiscal 2033.
Murphy said in August that the larger impact from those programs was expected in fiscal 2029 and beyond. Tuesday’s higher custom-silicon target provides the first updated sizing since those comments.
What Retail Thinks About MRVL Stock
On Stocktwits, retail investors’ sentiment around MRVL stock improved to ‘bullish’ from ‘bearish’ a day ago amid high message volume.
So far this year, MRVL stock has more than tripled, surging around 223%. In comparison, the iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH), which hold the stock, have risen around 89% and 70%, respectively.
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