Oct 6 (Reuters) – Marvell Technology raised its fiscal 2028 revenue forecast to about $20 billion on Tuesday, above Wall Street estimates, as demand for its custom data center chips grows along with a surge in AI spending.
Shares of the company rose about 7%, while those of rival Broadcom advanced about 4% in early trading.
Marvell had outlined a strategy centered on custom and cloud-optimized silicon — chips specifically designed for use in data centers — at its 2021 investor day. It has been one of the biggest beneficiaries of the AI infrastructure boom since then.
The company’s custom chip business has become a major growth engine, with technology companies developing in-house AI processors to reduce reliance on Nvidia chips. The chipmaker’s stock has more than tripled in value so far this year.
Marvell disclosed a deal with Alphabet’s Google in August that could generate up to $120 billion in sales through fiscal 2033, if performance milestones are achieved.
That same month, it raised its full-year revenue outlook to about $18 billion from $16.5 billion.
On Tuesday, Marvell forecast fiscal 2031 revenue of $70 billion to $90 billion. At $80 billion, the midpoint of that range exceeds Wall Street estimates of $46.85 billion, according to four analysts polled by Visible Alpha.
Analysts were expecting revenue of $18.2 billion for 2028, according to data compiled by LSEG.
(Reporting by Prathik Jayaprakash and Anhata Rooprai in Bengaluru; Editing by Joyjeet Das)
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