Marvell told investors Tuesday that it now expects fiscal 2028 revenue of about $20 billion, up from its prior $18 billion outlook and above the $18.2 billion analysts expected (LSEG, via Reuters). About $18 billion of that is expected to come from the data-center segment, and the company set a fiscal 2029 custom-silicon revenue target above $12 billion, according to investor-day materials reported by CNBC affiliates. The raise is the second this year: Marvell lifted its full-year outlook to about $18 billion from $16.5 billion in August.
The company also extended its long-range frame, projecting fiscal 2031 revenue of $70 billion to $90 billion. Its August deal with Google could contribute as much as $120 billion through fiscal 2033 if performance targets are met, Reuters reported. Marvell shares have more than tripled this year, giving the company a $255.8 billion market capitalization.
The market reaction was immediate. Marvell traded up 7.55 percent to $291.74 by 11:53 AM EDT on volume of 27.8 million shares, well above its 10-day average of 15.3 million. Broadcom rose 4.4 percent to $378.60 on sympathy, and AMD added 3.8 percent to a record. The move extends the custom-silicon narrative set on October 1 by Anthropic’s IPO prospectus, which disclosed Broadcom’s up-to-$42 billion convertible loan and a $125.2 billion five-year TPU commitment.
The read for the sector is that merchant GPUs are no longer the only AI-chip growth story: hyperscalers are shifting dollars to custom ASICs, which diversifies demand across Marvell, Broadcom and the foundry chain but concentrates supplier risk on a handful of large customers. Valuation is the counterweight: Marvell trades at about 96 times trailing earnings and 54 times forward earnings (CNBC key stats), pricing in a multi-year ramp that leaves little room for a pause in hyperscaler spending.