Marvell Technology Forecasts $12 Billion Revenue Amid AI Growth

Marvell Technology is seeing rapid growth in its AI infrastructure business, with its stock rising over 200% year-to-date. The company reported second-quarter revenue of $2.739 billion, a 36.55% increase, with data center sales now accounting for 79% of total revenue.

As part of its expansion, the company grew its custom silicon partnership with Google. This agreement includes a warrant that allows Google to acquire up to 7% of Marvell shares if specific revenue targets are achieved. Management expects the custom chip business to more than double by fiscal 2028, with fiscal 2027 revenue projected to reach approximately $12 billion and fiscal 2028 guidance set at $18 billion.

Investors are now focused on an Investor Day scheduled for October 6, 2026. RBC Capital Markets predicts the company will use the event to increase its fiscal 2029 AI revenue forecast by at least $2 billion and raise its 2030 market share estimates. This outlook aligns with broader industry projections from Counterpoint Research, which estimates custom AI processor shipments will triple by 2027, and Goldman Sachs, which projects a ten-fold increase in optical networking revenue between 2026 and 2028.

Despite these gains, the company faces risks from trade limits in China and the trend of hyperscalers designing their own chips in-house. However, the chief executive maintains that AI-related bookings remain "exceptionally robust."