Marvell Technology stock soars 16% as AI chips drive revenue forecast to nearly $11 billion
8 Sources
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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
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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
[3]
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%
[4]
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
[5]
Marvell Tackles AI's Biggest Bottleneck With New High-Speed Data Center Chips - Marvell Technology (NASDAQ:MRVL)
Marvell Technology Inc (NASDAQ:MRVL) is expanding its product lineup to help artificial intelligence data centers move and manage large volumes of data more efficiently as demand for AI computing continues to grow. Marvell shares slipped on Thursday as investors assessed geopolitical risks,
[6]
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
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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%):
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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
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Marvell Technology's stock jumped over 16% after the chipmaker raised its revenue forecast to nearly $11 billion for fiscal 2027, driven by surging demand for custom AI processors from Big Tech companies. The company's fourth-quarter results topped estimates with $2.22 billion in revenue, while CEO Matt Murphy highlighted record design wins that will fuel future growth in the booming AI infrastructure market.
Marvell Technology Exceeds Expectations with Strong AI Chips Performance
Marvell Technology posted fourth-quarter revenue of $2.22 billion, marking a 22% year-over-year increase that slightly surpassed analyst estimates of $2.21 billion
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. The chipmaker delivered adjusted earnings of $0.80 per share, beating the consensus estimate of $0.79 per share2
. Net income nearly doubled to $396.1 million, up from $200.2 million in the year-ago period, demonstrating the company's ability to capitalize on robust AI demand across the data center business2
. The stock price surged more than 16% in extended trading, erasing earlier losses and pulling shares back into positive territory for the year3
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Source: Benzinga
Revenue Forecast Signals Accelerated Revenue Growth
CEO Matt Murphy announced that Marvell Technology expects fiscal 2027 revenue to grow more than 30% to nearly $11 billion, significantly above the $9.5 billion projection made at a September investor event
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. The company also lifted its fiscal 2028 revenue forecast to $15 billion, representing nearly 40% growth and topping the consensus estimate of $12.92 billion4
. For the first quarter, Marvell expects revenue of around $2.40 billion, plus or minus 5%, above analysts' average estimate of $2.27 billion1
. Murphy stated that year-over-year revenue growth will accelerate each quarter in fiscal 2027, driven by continued strength in the data center segment, with bookings continuing to grow at a record pace1
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Source: SiliconANGLE
Custom AI Processors Fuel AI-Driven Data Center Expansion
Marvell Technology and rival Broadcom help cloud companies design custom chips tailored to their AI-driven data center workloads, a fast-growing business as hyperscalers seek alternatives to Nvidia's general-purpose AI processors
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. Amazon Web Services is thought to be the biggest buyer of custom AI processors from Marvell, with the chipmaker playing a key role in designing the popular Trainium chips for AI workloads2
. The company is also believed to be working with Google Cloud and Microsoft, though it hasn't confirmed this publicly2
. Application-specific integrated circuits, or ASICs, are chips tailored for a single function or custom workload, offering higher efficiency than general-purpose graphics processing units4
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Source: Reuters
Big Tech Spending Powers AI Infrastructure Boom
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 AI chips, servers, and networking equipment from companies such as Marvell
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. This massive capital outlay is boosting demand for Marvell's custom ASICs and high-speed interconnects that shuttle data between AI processors, memory, and servers, according to company president and COO Chris Koopmans, who noted that demand is "still growing massively"4
. Revenue in the data center segment, Marvell's largest business, rose 21% to $1.65 billion, compared with estimates of $1.64 billion4
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Strategic Acquisitions Target Data Movement Bottlenecks
During the quarter, Marvell splurged $5.5 billion on networking startup Celestial AI, which designs optical interconnect technology to enable more rapid data center communications
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. 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 models2
. Additionally, Marvell spent $550 million to acquire XConn Technologies Holdings, which manufactures high-speed data center chips that will likely be paired with Celestial's interconnects2
. Citigroup analysts noted that Marvell's focus on linking chips more closely within a single system could expand its role as cloud companies build larger AI clusters4
.Connectivity Solutions Address AI Workloads Challenges
Marvell announced it will showcase a broad range of AI data center technologies at the OFC 2026 conference in Los Angeles, with products focused on improving data movement between servers, processors, and storage systems within large cloud facilities
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. The company said these connectivity solutions address one of the biggest obstacles to expanding AI infrastructure, as companies are running into limits in how quickly data can travel across data centers5
. 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, while 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 centers2
.References
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