Marvell Technology forecasts fiscal 2028 revenue to exceed Wall Street estimates, signaling strong demand for its custom chips and interconnect solutions powering artificial intelligence data centers. The company's shares jumped 15% in extended trading.
AI adoption is driving demand for Marvell's specialized chips and high-speed data transfer technologies crucial for advanced data centers. Major tech firms are investing heavily in AI infrastructure, boosting the need for chips in servers and networking equipment.
Marvell anticipates its fiscal 2028 revenue to approach $15 billion, a nearly 40% increase. The company also raised its fiscal 2027 revenue forecast to nearly $11 billion. For the first quarter, Marvell expects revenue around $2.40 billion.
The company recently acquired Celestial AI for $3.25 billion, focusing on photonic fabrics to connect AI chips and memory.
CEO Matt Murphy stated, "We expect year-over-year revenue growth to accelerate each quarter in fiscal 2027, driven by continued strength in our data center business."
Marvell and rival Broadcom are developing custom chips for cloud-computing companies, offering alternatives to general-purpose AI processors.
In the fourth quarter, Marvell reported a 22% revenue increase to $2.22 billion. The data center segment, its largest business, saw a 21% rise to $1.65 billion.