Marvell Technology stock surges as AI chip demand drives revenue forecast to $15 billion

Marvell sees first quarter revenue above estimates on AI-driven data center boom

March 5 (Reuters) - Marvell Technology (MRVL.O), opens new tab forecast first-quarter revenue above Wall Street estimates on Thursday, driven by rising demand for custom chips used in data centers to support artificial intelligence applications, sending its shares up 9% in extended trading. Growing adoption of AI tools by enterprise clients has boosted demand for specialized chips that power advanced data centers, benefiting companies such as Marvell and Broadcom (AVGO.O), opens new tab that design application-specific ⁠integrated circuits (ASICs) Big Tech firms including Alphabet (GOOGL.O), opens new tab, Microsoft (MSFT.O), opens new tab, Amazon (AMZN.O), opens new tab and Meta (META.O), opens new tab are expected to spend at least $630 billion to build AI infrastructure this year, lifting demand for chips, servers and networking equipment from companies such as Marvell. Marvell expects revenue of around $2.40 billion, plus or minus 5% for the first quarter, above analysts' average estimate of $2.27 billion, according to data compiled by LSEG. "We expect year-over-year revenue growth to accelerate each quarter in fiscal 2027, ⁠driven by continued strength in our data center business, with bookings continuing to grow at a record pace," CEO Matt Murphy said in a statement. Marvell and rival Broadcom (AVGO.O), opens new tab help cloud-computing companies design custom chips tailored to ⁠their data-center workloads, a fast-growing business as hyperscalers seek alternatives to Nvidia's (NVDA.O), opens new tab general-purpose AI processors. Broadcom on Wednesday said it expected over $100 billion in AI chip sales ⁠next year, signaling rapid share in the market dominated by Nvidia (NVDA.O), opens new tab, which last month reported better-than-expected results for the January quarter. For the fourth ⁠quarter, Marvell reported a 22% increase in revenue to $2.22 billion, slightly above estimates of $2.21 billion. Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

Investors marvel at Marvell's solid earnings and revenue beat on AI chip demand - SiliconANGLE

Investors marvel at Marvell's solid earnings and revenue beat on AI chip demand Marvell Technology Inc.'s stock was flying high in late trading today after the chipmaker surpassed Wall Street's expectations in its latest financial results and offered a promising short-term forecast. The company delivered fourth-quarter earnings before certain costs such as stock compensation of 80 cents per share, squeaking past the analyst consensus estimate of 79 cents. Its revenue for the period jumped 22%n to $2.219 billion, surpassing the $2.207 billion analyst target. With those numbers, Marvell almost doubled its profitability: Net income rose to $396.1 million, up from $200.2 million in the year-ago period. For the current quarter, the chipmaker said it's looking for sales of about $2.4 billion, plus or minus 5%, surpassing the Street's consensus estimate of $2.3 billion in revenue. Marvell's stock soared more than 15% in extended trading, erasing a 3% loss it endured during the regular trading session amid a broader selloff of chip company stocks today. In a statement, Chief Executive Matt Murphy (pictured) said the company generated $8.195 billion in full-year revenue for fiscal 2026, rising 42% from the year before. This was driven by "robust AI demand," he said, referring to the company's custom AI processors, which it manufactures on behalf of enterprises such as Amazon Web Services Inc. "In addition to our strong results and outlook, our design wins in fiscal 2026 hit an all-time record, which we expect will continue to fuel our future growth," Murphy added. Amazon Web Services Inc. is thought to be the biggest buyer of customer processors from Marvell. The chipmaker plays a key role in designing its popular "Trainium" chips for artificial intelligence workloads, and it's also believed to be working with the likes of Google Cloud and Microsoft Corp. as well, though it hasn't said so publicly. The Trainium chips compete with Nvidia Corp.'s graphics processing units, which are the most popular silicon for running AI workloads today. While Marvell hasn't yet enjoyed the same traction as its rival Broadcom Inc. in custom processors, it has been spending a lot of money to make up ground. During the quarter it splurged $5.5 billion on the networking startup Celestial AI Inc., which designs optical interconnect technology to enable more rapid data center communications. Celestial's technology is critical for linking vast numbers of AI processors together, so they can operate as giant clusters and power advanced large language models. In addition, Marvell spent another $550 million to acquire XConn Technologies Holdings Inc., which manufactures high-speed networking switches that will likely be paired with Celestial's interconnects. Both companies are expected to become key pieces of the puzzle for Marvell as it steps up its game in custom processors. Murphy told analysts on a conference call that the company achieved a record number of customer wins in custom chips in fiscal 2026. Going forward, he expects the company's fiscal 2027 revenue to "accelerate" because of the growing strength of its data center business. He predicted that bookings in that unit will grow "at a record pace" throughout the year. J.P. Morgan analyst Harlan Sur told MarketWatch that the results have reassured investors that Marvell's lead custom chip program with AWS remains on track. He said the company is also seeing strong demand for its optical digital signal processors, which convert electrical signals into light to enable low-latency, high-bandwidth data transmission in data centers. With hyperscale data center operators such as AWS, Microsoft and Google all raising their capital expenditures guidance recently, Marvell is positioning itself to benefit, Sur said.

Marvell Technology Boosts Its Sales Forecast on Strong AI Demand. The Stock Is Soaring.

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Marvell Technology shares surged after the semiconductor firm posted earnings that topped estimates and raised its outlook, thanks in large part to strong AI demand. Shares of Marvell Technology (MRVL) were up over 16% in recent trading, at a time when broader markets lost ground. The move pulled the stock back into positive territory for the year. Marvell posted adjusted earnings per share of $0.80 on a 22% year-over-year jump in revenue to a record $2.22 billion for the fourth quarter. Both figures topped analysts' estimates compiled by Visible Alpha as AI-related orders grew. CEO Matt Murphy said over the company's earnings call that Marvell's revenue is expected to grow more than 30% this year to nearly $11 billion, well above the $9.5 billion mark the company projected at an investor event in September, per an AlphaSense transcript. Marvell also lifted its fiscal 2028 revenue forecast to $15 billion, up $2 billion from last quarter's forecast. Murphy said the higher revenue forecast is "all being driven by our data center business," as tech giants continue to pour more money into expanding their AI infrastructure. For the current quarter, Marvell said it expects revenue of $2.28 billion to $2.52 billion, and adjusted EPS of $0.74 to $0.84, above consensus projections. William Blair analysts wrote following the report that they see Marvell as "well positioned to grab its fair share" of the AI infrastructure market, despite some concerns about its concentration of sales among a few large customers. With Friday's gains, Marvell shares have added nearly one-quarter of their value over the past 12 months.

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

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.

Marvell Gets a Fresh Bid as AI Infrastructure Spending Lifts Revenue Visibility | Investing.com UK

Marvell Technology (NASDAQ:MRVL) is making headlines this Friday morning after a blowout Q4 earnings report sent shares surging sharply in after-hours trading on Thursday, March 5, 2026. The semiconductor company not only topped Wall Street's estimates for the quarter but issued forward guidance that dramatically exceeded analyst expectations, fueled by an accelerating boom in AI-driven data center infrastructure. With Big Tech giants pouring hundreds of billions into AI buildouts, Marvell finds itself squarely in the crosshairs of one of the most powerful secular growth trends in the technology sector. Investors are now asking whether this earnings-driven rally marks a turning point for a stock that had underperformed the broader semiconductor group over the prior two quarters. Marvell delivered a strong Q4 for fiscal year 2026, reporting revenue of $2.22 billion, a 22% jump year-over-year, edging past analyst estimates of $2.21 billion. Adjusted earnings per share came in at $0.80, a penny ahead of the consensus estimate of $0.79, continuing a pattern of beats that has defined much of the company's recent fiscal year. CEO Matt Murphy highlighted that Marvell posted record full-year fiscal 2026 revenue of $8.195 billion, representing 42% growth year-over-year, driven by what he called "robust AI demand." Non-GAAP EPS for the full year reached $2.84, an 81% increase year-over-year, underscoring the operating leverage embedded in the business model. Murphy also noted that design wins in fiscal 2026 hit an all-time record, a forward-looking signal that growth momentum is far from peaking. Looking into Q1 FY2027, Marvell guided for revenue of approximately $2.40 billion, plus or minus 5%, well above the analyst consensus of $2.27 to $2.28 billion, and adjusted EPS of $0.79 versus estimates of $0.74. The most striking element of Thursday's report was Marvell's long-range revenue outlook, which sent shares surging roughly 15% in extended trading. The company now expects fiscal 2028 revenue to grow nearly 40% and approach $15 billion, a figure that towers over the analyst consensus estimate of $12.92 billion compiled by LSEG. Marvell also raised its fiscal 2027 revenue forecast to more than 30% growth year-over-year, nearing $11 billion, up from prior expectations of approximately $10 billion. President and COO Chris Koopmans attributed the confidence to visibility into hyperscaler capital spending plans and a record pace of bookings, stating the company feels "very confident" in hitting those numbers. The optimism is well-grounded: Big Tech firms including Alphabet, Microsoft, Amazon, and Meta are expected to collectively spend at least $630 billion on AI infrastructure in 2026 alone, lifting demand for the custom ASICs and high-speed interconnect products that are core to Marvell's data center franchise. Marvell also completed its $3.25 billion acquisition of Celestial AI -- a photonic fabrics company -- which is expected to further differentiate its chip-to-chip connectivity offering as AI clusters continue to scale. As of pre-market trading on March 6, 2026 at approximately 5:03 AM EST, MRVL shares were trading at $84.49, up $8.81 or +11.64%, after closing the prior session at $75.68 -- itself down 3.09% on the day before the earnings release. The stock's 52-week range spans $47.09 to $102.77, and the current analyst average price target stands at $114.06, with the high target reaching $150.00, suggesting significant upside from current levels even after the premarket pop. On a trailing basis, MRVL carries a P/E ratio of 26.65 and a forward P/E of 23.26, with a market cap of approximately $66.1 billion intraday. From a performance perspective, the stock has lagged year-to-date at -10.88% versus the S&P 500's -0.22%, and is down 15.76% over the past year against the index's +16.91% gain, but has outperformed over three and five years, up 73.75% and 86.01% respectively. Analyst sentiment remains broadly constructive; Evercore ISI Group maintained its Outperform rating as recently as March 4, though it trimmed its price target from $156 to $133. Thursday's results and upgraded outlook may prompt a fresh wave of price target revisions across the Street. *** Looking to start your trading day ahead of the curve?

Marvell Technology Poised for Growth Acceleration Amid AI Connectivity Strength, BofA Says in Upgrade

Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows: - data centers (72.2%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.; - enterprise networks (10.9%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises; - telecom network infrastructures (5.9%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.; - consumer electronics (5.5%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals; - automotive and industrial (5.5%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems. Net sales are distributed geographically as follows: the United States (16.6%), China (43.5%), Taiwan (9.7%), Singapore (7.8%), Thailand (5.3%), Japan (2.9%), Malaysia (2.5%), Finland (2%) and other (9.7%).

Marvell projects strong fiscal 2028 revenue on AI-driven data center boom, shares jump

March 5 (Reuters) - Marvell Technology forecast fiscal 2028 revenue above Wall Street estimates on Thursday, signaling robust demand for custom chips and interconnect solutions used in artificial intelligence data centers, sending its shares surging 15% in extended trading. Growing adoption of AI tools has boosted demand for specialized chips such as Marvell's custom application-specific integrated circuits used in advanced data centers, as well as its interconnect technologies that enable high-speed data transfer between processors, memory and servers. Big Tech firms including Alphabet, Microsoft, Amazon and Meta are expected to spend at least $630 billion to build AI infrastructure this year, lifting demand for chips used in servers and networking equipment from companies such as Marvell. That spending is flowing to Marvell through its data center business, President and Chief Operating Officer Chris Koopmans said in an interview. "They're still growing massively," he said. Marvell expects revenue to grow nearly 40% and approach $15 billion in fiscal 2028, above analysts' average estimate of $12.92 billion, according to data compiled by LSEG. The company also raised its fiscal 2027 revenue forecast to grow more than 30% year over year, nearing $11 billion, compared with its earlier expectations of about $10 billion revenue. "We're sitting here looking at hyperscalers (capital spending) plans for the year, and we're able to look at our booking rate, and we feel very confident in hitting those numbers," Koopmans said. It expects revenue of around $2.40 billion, plus or minus 5%, for the first quarter, above estimates of $2.27 billion. The company said the quarterly forecast includes expected results of Celestial AI and XConn Technologies. Marvell divested its automotive ethernet business last year and completed the acquisition of Celestial AI in a deal worth $3.25 billion, doubling down on photonic fabrics, a technology that uses light rather than electrical signals to connect AI chips and memory chips. Marvell and rival Broadcom help cloud-computing companies design custom chips tailored to their data-center workloads, a fast-growing business as hyperscalers seek alternatives to Nvidia's general-purpose AI processors. The custom chip business amounts to roughly 10% to 15% of the company's revenue and the company expects that to continue to grow, Koopmans said. "Marvell's shares like many AI-related names have underperformed the semiconductor group in the past two quarters. We think the better-than-expected results and outlook, while expected, is more of a relief for investors than confirming the near-term data center spending strength," said Kinngai Chan, senior research analyst at Summit Insights. Broadcom on Wednesday said it expected over $100 billion in AI chip sales next year, signaling rapid share gains in a market dominated by Nvidia, which last month reported better-than-expected results for the January quarter. For the fourth quarter, Marvell reported a 22% increase in revenue to $2.22 billion, slightly above estimates of $2.21 billion. Adjusted earnings per share of 80 cents beat estimates of 79 cents. Revenue in the data center segment, its largest business, rose 21% to $1.65 billion, compared with estimates of $1.64 billion. (Reporting by Jaspreet Singh in Bengaluru, additional reporting by Max A. Cherney in San Francisco; Editing by Tasim Zahid, Alan Barona and Chris Reese)