Marvell Technology Raises Revenue Outlook Amid AI Growth

Marvell Technology reported strong fiscal second-quarter earnings on August 27, with overall revenue increasing 37% year-over-year to $2.74 billion. Adjusted earnings per share rose 40% to $0.94, fueled primarily by a 46% jump in data center segment revenue to $2.17 billion. This growth resulted from high demand for custom silicon and optical DSP chips used in AI infrastructure.

The company significantly raised its future financial projections, increasing its fiscal 2027 revenue outlook to $12 billion and projecting fiscal 2028 revenue to reach $18 billion. This represents a 50% increase over previous forecasts. Marvell also announced a broad-based partnership with Alphabet Inc. involving storage controllers and inference accelerators, which the company described as a "game changer," although these contributions are not expected to be meaningful until fiscal 2029.

Despite the positive earnings and guidance, shares declined following the announcement. The stock remains up over 150% year-to-date. Marvell continues to maintain critical relationships with major cloud providers, including Amazon.com, its largest customer for custom chip intellectual property, and Microsoft, with whom it is collaborating on the new Maia chip.