Marvell surges! Revenue forecast for 2028 raised to $20 billions, driven by strong data center demand
Marvell expects total revenue to reach $20 billion for fiscal year 2028, higher than the previously stated $18 billion and exceeding Wall Street’s estimate of $18.2 billion. The company also expects fiscal year 2031 revenue to reach between $70 billion and $90 billion, far surpassing Wall Street’s forecast of $46.85 billion. Following the announcement, Marvell's share price rose by nearly 9% at one point.
Marvell Technology further raised its long-term performance targets at its Investor Day, projecting that total revenue will reach approximately $20 billion in fiscal year 2028, up from the previous target of $18 billion, also surpassing Wall Street’s expectation of around $18.2 billion.
The company also expects that revenue for fiscal year 2031 will reach between $70 billion and $90 billion, significantly higher than Wall Street’s current expectation of about $46.85 billion.
This upward revision reflects Marvell’s more optimistic outlook on AI infrastructure demand. The company noted that demand for data center chips continues to grow, especially with the custom chip business becoming an important growth engine. The expansion of AI infrastructure investment is also driving market demand for Marvell’s custom computing and interconnect chips.
Following the announcement, Marvell’s share price jumped nearly 9% at one point before paring gains; competitor Broadcom’s shares rose about 4% in early trading. Marvell’s stock price has more than tripled so far this year.
Marvell had already raised its long-term outlook once when it reported second-quarter results in August. At that time, the company raised its fiscal year 2027 revenue guidance to about $12 billion and increased its fiscal year 2028 revenue estimate from $16.5 billion to about $18 billion.
Fiscal Year 2031 Revenue Target Up to $90 Billion, Far Exceeding Expectations
Compared to the $20 billion target for fiscal year 2028, Marvell’s longer-term growth expectations are even more aggressive.
The company expects revenue for fiscal year 2031 to reach between $70 billion and $90 billion, with a midpoint of $80 billion. Based on fiscal year 2026 revenue of $8.2 billion, this implies a compound annual revenue growth rate of about 55% to 60% for Marvell over the next few years.
Reuters, citing Visible Alpha data, reported that the average 2031 fiscal year revenue estimate for Marvell among four analysts is approximately $46.85 billion, while the midpoint of the company’s target range reaches $80 billion.
From a business composition perspective, Marvell expects that by fiscal year 2031, the custom chip business will contribute about $30 billion in revenue, while the interconnect business is projected to contribute about $37.5 billion. These two segments will be key pillars for long-term growth.
The company also expects that by 2030, its potential market size will reach approximately $400 billion.
Regarding long-term performance certainty, in August this year Marvell disclosed an agreement with Google—if the relevant performance milestones are met as scheduled, the contract could contribute up to $120 billion in sales by fiscal year 2033. This potential mega-deal provides investors with an important reference when evaluating the company’s future revenue.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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