Marvell Technology (NASDAQ:MRVL) outlined an expanded long-term growth plan at its 2026 Investor Day, raising its fiscal 2028 revenue outlook and projecting a path to $70 billion to $90 billion in annual revenue by fiscal 2031 as artificial intelligence infrastructure drives demand for connectivity, custom silicon and optical technologies.
Chairman and Chief Executive Officer Matt Murphy said the company expects approximately $20 billion in total revenue in fiscal 2028, up from its prior outlook of about $18 billion. The revised forecast implies roughly 67% year-over-year growth, with data center revenue expected to grow about 80%, according to Murphy.
Connectivity Focus Drives Outlook
Murphy characterized Marvell as a “connectivity-first” company positioned to benefit as AI systems require more bandwidth and more efficient movement of data across data centers, racks and chip packages. He said the company estimates its total addressable market will reach approximately $400 billion by 2030, including about $385 billion in data center opportunities and about $15 billion in communications and other markets.
The company’s addressable market estimate includes:
- Approximately $65 billion for interconnect, growing at an estimated 65% annual rate through 2030.
- About $85 billion for switching and storage, growing at an estimated 40% annual rate.
- About $235 billion for custom silicon, growing at an estimated 55% annual rate.
Murphy said Marvell sees demand shifting beyond compute and memory toward connectivity, including optical links for scale-out, scale-across, scale-up and, eventually, scale-in applications. He said the increasing bandwidth demands of AI systems are shortening the distances that copper connections can serve, creating opportunities for optics to move closer to processors.
At the midpoint of its fiscal 2031 forecast, Marvell expects approximately $37.5 billion of interconnect revenue, about $10 billion from switching and storage, approximately $30 billion from custom products, and roughly $2.5 billion from communications and other businesses.
Custom Silicon Target Raised
Marvell raised its fiscal 2029 custom revenue outlook to more than $12 billion, compared with a prior target of more than $10 billion. Murphy said the increase reflects the expansion of what the company calls the “XPU attach” opportunity: semi-custom and custom products surrounding AI accelerators, including networking, memory, storage, security and inference acceleration functions.
The custom business generated about $1.5 billion in fiscal 2026 revenue, according to Murphy. He said Marvell now ships custom silicon to all four U.S. hyperscalers and has announced strategic agreements with AWS, NVIDIA and Google.
President and Chief Operating Officer Chris Koopmans said Marvell’s customer strategy centers on the largest hyperscale cloud operators. He said the company’s fiscal 2031 forecast is based on hundreds of products across its top hyperscale customers and does not rely on a major new customer or “home-run” design win.
Koopmans also said Marvell has provided key suppliers with five-year forecasts and has invested to reserve capacity across its supply chain. He said the company has grown its data center business by investing heavily in research and development, cloud-based design tools and engineering talent.
Optics, Switching and Memory Opportunities
Data Center Group President Sandeep Bharathi said AI infrastructure faces constraints related to bandwidth, latency, energy efficiency and physical reach. He said Marvell has invested in advanced process technologies, high-speed SerDes, packaging, silicon photonics and other optical technologies to address those constraints.
Xi Wang, senior vice president and general manager of Marvell’s Connectivity Business, said the company’s digital signal processor business has reached multibillion-dollar annual revenue, while its analog business is moving toward annual revenue above $1 billion. Wang said Marvell is shipping 1.6T optical technologies in volume and is developing 3.2T products, including coherent-lite offerings designed for longer data center and campus connections.
Russ Esmacher, who leads Marvell’s data center interconnect business, said the company expects that business to grow from roughly $500 million in fiscal 2026 to more than $1 billion in fiscal 2028, with a path to multiple billions of dollars in subsequent years. He cited growing demand for direct high-bandwidth connections between AI clusters.
Dave Lazovsky, executive vice president and general manager of Marvell’s Data Center Networking Business, said the company expects its scale-out switching business to exceed $1 billion next fiscal year, driven by its 51.2T products. He added that Marvell expects its 100T switch and future scale-up switching products to add multibillion-dollar annual opportunities over time.
Financial Model Targets
Chief Financial Officer Dan Durn presented Marvell’s fiscal 2031 financial model, which calls for $70 billion to $90 billion in revenue, gross margin of 56% to 59%, operating margin of 44% to 46%, a 15% tax rate and free-cash-flow margin above 36% over time.
Durn said the assumptions imply non-GAAP earnings per share above $30 in fiscal 2031 at the midpoint of the company’s revenue range. Marvell also said it plans to return more than 50% of free cash flow to shareholders on average over time while continuing to fund organic and inorganic growth investments.
About Marvell Technology (NASDAQ:MRVL)
Marvell Technology, Inc (NASDAQ: MRVL) is a fabless semiconductor company that develops technologies for data infrastructure. Its products are used to move, process, store and secure data across cloud data centers, enterprise networks, telecommunications systems, automotive platforms and other communications applications.
The company’s portfolio includes custom application-specific integrated circuits, data processing and networking solutions, Ethernet products, storage controllers, optical and electro-optical components, and connectivity technologies.
