Marvell Technology Raises Revenue Forecast to $20 Billion by 2028

Marvell Technology raised its revenue forecast for fiscal 2028 to approximately $20 billion, up from an $18 billion target set in August. The company also increased its fiscal 2027 outlook to $12 billion, following record second-quarter revenue of $2.7 billion, which represented a 37% year-over-year increase.

Growth is primarily driven by the data center business, which grew 46% year-over-year to $2.17 billion in the second fiscal quarter of 2027. The company is producing custom application-specific integrated circuits for the four largest U.S. hyperscalers and expanding its storage and interconnect portfolios. To enhance photonic interconnect capabilities, the company acquired Celestial AI in February.

Marvell projects a compound annual growth rate of 55% to 60% for revenue and earnings through fiscal 2031. Custom AI chips and interconnect revenue are expected to grow at 80% and 65% CAGR, respectively. Management estimates the total addressable market will reach $400 billion by 2030, with a long-term annual earnings per share target exceeding $31.

Despite these projections, the company faces risks from high customer concentration, as its ten largest customers accounted for 82% of revenue in fiscal 2026. Marvell also warned that cloud providers investing in proprietary chip designs could reduce future demand.