Marvell Tech shares soar on bullish multi-year AI chip outlook

Marvell Technology rose nearly 11% in early trading on Friday, as its upbeat multi-year forecast underscored booming demand for custom AI chips from large technology companies.

The jump could add more than $10 billion to the company's market value if gains ‌hold.

Marvell's strong ⁠forecast comes ⁠on the heels of peer Broadcom projecting more than $100 billion in AI-chip sales next year, signaling demand is spreading beyond AI bellwether Nvidia.


While both Marvell and Broadcom develop tech that enables high-speed connections between processors, Citigroup analysts said Marvell's focus on linking chips more closely within a single system could expand its role as cloud companies build larger ⁠AI clusters.

Marvell ‌said fiscal 2028 revenue will rise nearly 40% to about $15 billion, topping the $12.92 billion LSEG consensus. It also lifted its ⁠fiscal 2027 view to 30%-plus growth, nearing $11 billion.

Capital spending on AI infrastructure by Alphabet, Meta, Microsoft and Amazon is expected to exceed $630 billion this year.

That outlay is boosting demand for Marvell's custom ASICs and high-speed interconnects that shuttle data between AI processors, memory and servers, and it is "still growing massively," said the company's president and COO, Chris Koopmans.

ASICs, or application-specific integrated circuits, are chips ‌tailored for a single function or custom workload, offering higher efficiency than general-purpose graphics processing units.

Analysts say Marvell is ​set for ​a strong run ⁠in its data-center business, helped by rising demand for its digital signal processors that power high-speed optical links in AI servers and a multiyear ramp-up ​in custom AI processors running ahead of expectations.

Revenue in the data-center segment, its largest business, rose 21% to $1.65 billion, compared with estimates of $1.64 billion.

Marvell trades at a 12-month forward price-to-earnings ratio of 19.99, compared with Broadcom's 25.31, LSEG data showed.