Marvell Technology used its investor day to raise the scale of its long-term AI opportunity.
The supplied source says Marvell increased its fiscal 2028 revenue target to $20 billion from the $18 billion outlook it gave in August. Management attributed the additional $2 billion primarily to stronger demand for data center connectivity, including scale-up optics and switching.
The company also expects its custom-chip business to triple in fiscal 2029 from fiscal 2028 and exceed $12 billion. Amazon and Alphabet are among the major customers cited in the source.
Marvell’s longer-range target is much more ambitious. Management said total company revenue could reach $70 billion to $90 billion in fiscal 2031, compared with a FactSet consensus estimate of $47 billion cited in the article.
That target depends on a very large underlying spending cycle. Marvell expects data center capital expenditure to reach $3 trillion by 2030, growing at about a 35% compound annual rate from 2025 through 2030 before moderating in later years.
For investors, the most important point is that the AI opportunity is extending beyond GPUs. Networking, optics, switching and custom accelerators are becoming increasingly important as data centers scale.
The risk is execution. Long-term revenue targets this large depend on customer spending remaining elevated, custom programs moving into production and competition staying manageable.
BTI’s bottom line: Marvell’s guidance adds another data point supporting the breadth of AI infrastructure demand. The upside case now depends less on whether AI spending continues and more on whether Marvell can convert that spending into durable market share across connectivity and custom silicon.