MRVL

T12.0% portfolio

Marvell Technology, Inc.

Next est. report 2026-08-27 · AMC

Chips '26: CPUs Chips '26: Processor IP Edge AI Long '24: Edge ProcessorsMegaTech '25: Amazon EcosystemMegaTech '25: Nvidia GPU ComplexMemory '26: CXL / Memory Expansion Optical Connectivity '26: AI Optical Transceivers Optical Connectivity '26: Interconnect Electrical & Copper

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Overview

Marvell Technology, Inc. designs and sells specialized semiconductor solutions for data infrastructure, enabling high-speed data movement and processing. Its pr

Marvell Technology, Inc. designs and sells specialized semiconductor solutions for data infrastructure, enabling high-speed data movement and processing. Its products, primarily for data centers (76% of revenue) and communications, include custom chips, networking, and storage solutions. Marvell serves major cloud providers and telecom companies globally, with significant growth driven by AI infrastructure demand.

What They Do (Plain English & Analogies): Marvell Technology designs and builds the specialized electronic "brains" and "nervous systems" that power the world's digital infrastructure. Think of them as architects and manufacturers of the high-performance components that allow massive amounts of data to be processed, moved, and stored incredibly fast. For example, in a giant AI data center, Marvell's chips are like the super-fast highways (interconnects) that connect thousands of powerful computers (GPUs and XPUs), the traffic controllers (switches) that direct data efficiently, and the custom engines (ASICs) that perform specific AI tasks. They make sure data flows smoothly and quickly, which is crucial for things like AI, cloud computing, and 5G networks.
Very Brief History: Marvell Technology, Inc. was founded in 1995 by Dr. Sehat Sutardja, Weili Dai, and Pantas Sutardja. Initially focused on consumer electronics, the company evolved into a global semiconductor firm specializing in integrated circuits for data infrastructure. Key milestones include its IPO in 2000, and strategic acquisitions like Aquantia in 2019, Inphi Corporation in 2021, and more recently Celestial AI and XConn Technologies in fiscal year 2027, which significantly bolstered its capabilities in optical interconnect and CXL/PCIe switching.
"Street Stereotype": Marvell's "street stereotype" is currently that of a rapidly growing, AI-infrastructure pure-play beneficiary, particularly strong in custom silicon and high-speed optical interconnects. Investors perceive it as a key "picks and shovels" provider for the AI boom, with significant upside potential due to its expanding partnerships with hyperscalers and its broad portfolio addressing critical bottlenecks in AI data centers. The market is focused on its accelerating revenue growth, especially in the data center segment, and its ability to secure capacity and win new, large-scale custom programs.
Subsidiaries On Linked In*: Inphi Corporation — LinkedIn: Inphi-Corporation
Marvell Software Solutions Israel — LinkedIn: marvell-software-solutions-israel
Customer Sectors & Example Clients: Customer sectors include data centers, communications (5G wireless carrier solutions, enterprise networking), and other markets (enterprise, automotive, consumer electronics). Specific top clients mentioned or strongly implied: * "all 5 major U.S. hyperscalers" * NVIDIA (expanded partnership, NVLink Fusion integration) * Microsoft (custom AI chip client) * Amazon (custom AI chip client, AWS) * Tier 1 hyperscalers (for XPU scale-up networks, DCI solutions) * Telecommunications operators (for AI-RAN)
New Customers / Segments They'Re Targeting: Marvell is actively targeting new segments driven by the evolving AI infrastructure. These include: * **Agentic AI:** This new paradigm, where AI models query each other multiple times for a single user request, is expected to drive significant demand for scale-out, scale-up, and XPU attach businesses due to increased data traffic, memory requirements, and CPU deployments. * **Scale-up networking (NPO and CPO implementations):** Marvell is heavily investing in and targeting this emerging market, providing silicon photonics-based light engines and solutions for both Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) to enable larger, more efficient AI clusters. * **New Tier 1 XPU programs:** The company has secured a new Tier 1 XPU program that is expected to ramp into volume production in fiscal 2028, representing a significant new customer for custom silicon. * **PCIe Gen 6 and CXL 3.1 solutions:** With the acquisition of XConn, Marvell is targeting customers needing advanced PCIe and CXL switch solutions, paired with retimers and memory expanders, for next-generation memory architectures.
Supply Chain And Sourcing Geographies: Marvell operates a fabless model, meaning it designs chips but relies on third-party foundries for manufacturing. * **Foundries:** Primarily located in Asia. The transcript specifically mentions collaboration with "TSMC on its Coop platform." * **Capacity Investments:** Marvell is making strategic prepayments to key suppliers to secure additional capacity, indicating strong relationships with its manufacturing partners. * **Geographic Presence:** While manufacturing is outsourced, Marvell has a global footprint for design and operations, including offices in the United States (headquartered in Wilmington, Delaware, with a main office in Santa Clara, California), India (Bangalore, Hyderabad, Pune), Singapore, China (Shanghai), and Japan (Tokyo).
Sales Geographies And Expansion Plans: Marvell currently sells its products globally, with reported sales geographies including the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. The company's focus on hyperscalers and telecommunications operators implies a global reach for its data center and communications solutions. Management's discussions about "all 5 major U.S. hyperscalers" and "Tier 1 customers" suggest a continued focus on major global technology hubs and markets where AI infrastructure is being built out. No explicit plans for *new* geographic sales expansion were mentioned, but rather a deepening penetration within existing high-growth markets.
How Key Themes May Help/Hurt: Marvell is strongly positioned to benefit from the buildout of CXL and memory expansion. The company completed the acquisition of XConn Technologies, which provides hybrid PCIe/CXL switches, and has existing CXL memory expander controllers. This creates a comprehensive CXL portfolio. The transcript highlights that CXL programs are "ramping in fiscal 2027" and that "demand continuing to exceed prior forecasts, particularly in NIC and CXL memory attach use cases driven by increasing inference KV caching requirements." The concerns around memory architecture in AI are driving additional adoption of CXL-based designs, playing directly into Marvell's favor. The company sees CXL as a "very real opportunity" with plans to get the XPU attach custom line item alone "over $1 billion in revenue in the next couple of years." This theme directly supports Marvell's custom silicon and XPU attach growth, contributing significantly to its overall revenue outlook.

3 Main Long-Term Bull Details

Dominant position in AI infrastructure connectivity: Marvell has the industry's broadest portfolio of high-speed connectivity solutions (interconnect, switching, custom silicon) critical for scaling AI data centers, including leadership in PAM4 DSPs, coherent light, DCI modules, and silicon photonics. This positions them as a foundational "picks and shovels" provider for the accelerating AI build-out.
Accelerating custom silicon and XPU attach growth: The company is seeing unprecedented custom engagement with Tier 1 hyperscalers, with its custom business expected to more than double in fiscal 2028 and achieve over $10 billion in revenue by fiscal 2029. This is driven by existing programs, over 10 XPU attach programs, and a new Tier 1 XPU program.
Strategic partnerships and technology leadership: Marvell's expanded partnership with NVIDIA (NVLink Fusion, AI-RAN) and its continuous investment in cutting-edge technologies like plasmonic-based silicon photonics (Polariton acquisition) ensure it remains at the forefront of innovation, enabling it to capture new market opportunities in evolving AI architectures.

3 Main Long-Term Bear Details

Intense competition and market share pressure: Marvell operates in a highly competitive semiconductor market against established giants like NVIDIA, Broadcom, and AMD, particularly in custom AI chips and networking. While Marvell is strong, Broadcom is noted as the "clear market leader" in custom AI chips with "far bigger customer scale, deeper hyperscaler reach, and broader product coverage," which could limit Marvell's upside or pressure margins.
Reliance on third-party foundries and supply chain risks: As a fabless company, Marvell relies heavily on third-party foundries, primarily in Asia, for chip manufacturing. While they are actively securing capacity, any significant disruptions, geopolitical tensions, or capacity constraints at these foundries could impact their ability to meet surging demand and deliver on aggressive growth forecasts.
Technological transition challenges and timing risks: The rapid evolution of AI architectures, particularly in areas like co-packaged optics (CPO) and scale-up networking, involves significant technological hurdles and uncertainties regarding widespread adoption timelines. Delays in customer qualifications or slower-than-expected market penetration of these emerging technologies could impact Marvell's projected revenue ramps.

Competitors And Differentiation: Competitors in the AI chip space include NVIDIA, AMD, and Broadcom. Marvell differentiates itself through: * **Broadest portfolio of high-speed connectivity solutions:** Spanning scale-out, scale-across, and scale-up networking, including PAM4 DSPs, coherent light products, DCI modules, and silicon photonics. * **Leadership in custom silicon:** Deep engagements with Tier 1 hyperscalers for custom XPUs and XPU attach programs, leveraging best-in-class SRAM design capability and advanced packaging. * **End-to-end system solution capability:** Ability to offer comprehensive solutions from XPU to switch, with various optical or copper connections, integrating its expertise in switches, XPUs, and optics. * **Proven technology and reliability:** Demonstrated world-class reliability with 15 billion hours of field data on silicon photonics over a decade. * **First-to-market cadence:** Maintaining leadership across successive PAM4 generations (e.g., 800 gig, 1.6T, 400 gig per lane technology). * **Strategic partnerships:** Expanded collaboration with NVIDIA for NVLink Fusion integration and AI-RAN, connecting Marvell's custom silicon and optical networking into the NVIDIA ecosystem.
Recent Performance & What The Market'S Focused On: Marvell recently delivered record first-quarter fiscal year 2027 revenue of $2.418 billion, reflecting 9% sequential and 28% year-over-year growth, exceeding guidance. Non-GAAP EPS of $0.80 also exceeded guidance. The company provided strong guidance for Q2 FY27, expecting revenue of $2.7 billion (12% sequential, 35% YoY growth). They also significantly raised their full fiscal year 2027 revenue forecast to nearly $11.5 billion (approx. 40% YoY growth) and fiscal 2028 outlook to approximately $16.5 billion (approx. 45% YoY growth). The market is intensely focused on: * **Accelerating data center growth:** Projected to grow approximately 50% in FY27 and 55% in FY28, driven by interconnect (70%+ growth in FY27) and custom silicon. * **Custom silicon ramp:** The expectation of custom revenue more than doubling in FY28 and reaching over $10 billion by FY29, including new Tier 1 XPU programs and XPU attach. * **Optical interconnect leadership:** Strong demand for 800 gig and 1.6T products, the ramp of coherent light, and the DCI module business targeting $1 billion annualized revenue in FY28. * **Capacity securing and operating leverage:** Management's efforts to secure supply through prepayments and drive operating leverage, aiming for 38-40% operating margin in FY28.

Revenue Segments And Estimated Mix: Data Center — Mix: 76%; Source: Q1 Fiscal Year 2027 earnings call; Trend: Largest segment, grew 11% sequentially and 27% year-over-year in Q1 FY27. Expected to grow approximately 50% in FY27 and 55% in FY28.
Communications and other end market — Mix: ~24%; Source: Calculated from Data Center mix in Q1 Fiscal Year 2027 earnings call; Trend: Grew 3% sequentially and 29% year-over-year in Q1 FY27. Expected to grow approximately 10% in FY27 and low single-digit percentage in FY28.
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Bull / Bear Details

Marvell is a compelling long investment as of July 22, 2026, driven by its accelerating leadership in data infrastructure semiconductors for AI. Record demand a

Thesis

Marvell is a compelling long investment as of July 22, 2026, driven by its accelerating leadership in data infrastructure semiconductors for AI. Record demand and bookings, particularly in data center interconnect, custom silicon, and switching, are fueling significantly raised revenue outlooks for FY27 and FY28. Strategic acquisitions and partnerships, especially with NVIDIA, enhance its comprehensive portfolio across scale-out, scale-up, and scale-across AI networks, positioning Marvell as a critical enabler of next-generation AI infrastructure.

Bull case

Marvell is experiencing accelerating data center revenue growth, projected at approximately 50% in fiscal 2027 and 55% in fiscal 2028. Its interconnect business is a major driver, expected to grow over 70% year-over-year in fiscal 2027, with DCI modules on track for a $1 billion annualized run rate by fiscal 2028 and scale-up optics revenue set to more than double, indicating strong capture of AI infrastructure spending.
Marvell's comprehensive AI connectivity and custom silicon portfolio, bolstered by the expanded NVIDIA partnership and acquisitions like Polariton and XConn, provides a unique end-to-end solution for complex AI networks. This includes leadership in silicon photonics, high-speed switching (51.2T, 200T+ roadmap), and CXL/PCIe switches. The custom business is expected to more than double in fiscal 2028, targeting over $10 billion by fiscal 2029.
Proactive supply chain management, including strategic prepayments of approximately $1 billion in fiscal 2027, ensures Marvell can secure necessary capacity to meet surging AI demand. The company also projects significant operating leverage, with non-GAAP operating expense growth well below revenue growth in fiscal 2028, aiming for the upper end of its 38-40% operating margin target, signaling strong profitability expansion.

Bear case

Despite Marvell's broad portfolio, the emerging markets for scale-up optics and switching are highly competitive, with multiple technologies and architectures vying for dominance. Successfully integrating recent acquisitions like Polariton and XConn, and executing on complex, multi-billion dollar lifetime opportunities with Tier 1 hyperscalers, presents significant execution and technological risk.
Marvell's accelerated growth is heavily reliant on aggressive capital expenditures by hyperscalers for AI infrastructure. Any unexpected moderation or slowdown in cloud CapEx growth, or a slower-than-anticipated adoption of advanced AI models like Agentic AI or new networking paradigms, could directly impact Marvell's ambitious revenue targets and growth trajectory.
While the data center segment is booming, Marvell's communications and other end markets are expected to see low single-digit growth in fiscal 2028, and even a mid-single-digit sequential decline in Q2 fiscal 2027 for communications. This segment's inherent cyclicality and slower growth could partially offset the strong performance in data center, potentially impacting overall company growth and investor sentiment.

Bull / Bear Case

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Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
CXL and PCIe Switch Solutions Ramp (XConn Integration)	Marvell's expanded CXL and PCIe switch portfolio, bolstered by the XConn acquisition, positions it to capitalize on memory expansion and scale-up networking trends in AI infrastructure, aligning with a primary investment theme.	Revenue contribution from CXL and PCIe switch solutions (expected to begin H2 FY27 and ramp). Customer engagements and design wins for PCIe Gen 6 and CXL 3.1 solutions. Progress towards the XPU attach custom line item exceeding $1 billion in revenue in the next couple of years.	Bullish if CXL/PCIe revenue ramps strongly, new design wins are announced, or the XPU attach target is reaffirmed/accelerated. Bearish if ramp is slower than expected or competitive pressures emerge.	Company earnings calls, product announcements, CXL Consortium updates, industry events like Flash Memory Summit.	CXL Consortium news, industry articles on CXL adoption, competitor product launches.	Yole Group: CXL Market Report, TrendForce: DRAM and CXL Market Analysis
Non-GAAP Operating Margin Progress	Achieving the target operating margin of 38-40% in fiscal 2028 demonstrates effective cost management and operating leverage, translating strong revenue growth into higher profitability.	Non-GAAP operating expenses (Q2 FY27 target approximately $600 million). Non-GAAP operating margin in subsequent quarters. Progress towards the 38-40% target in FY28.	Bullish if non-GAAP operating expenses are managed effectively, leading to operating margin expansion towards or exceeding the 38-40% target. Bearish if operating expenses grow faster than revenue or margin targets are revised downwards.	Company earnings releases, investor conference calls, SEC filings (10-Q, 10-K).	None directly applicable for intra-quarter tracking beyond company reports.	S&P Global Market Intelligence: MRVL Financials, Refinitiv Eikon: MRVL Operating Metrics
Custom Business Revenue Growth (New Tier 1 XPU program & XPU attach)	Marvell's custom silicon business, particularly the new Tier 1 XPU program and XPU attach solutions, is a significant long-term growth driver with a target of over $10 billion in fiscal year 2029.	Custom revenue growth rate (FY27 target >20% YoY, FY28 target >100% YoY). Progress of the new Tier 1 XPU program into volume production. Expansion of XPU attach programs (e.g., NIC, CXL memory attach).	Bullish if custom revenue growth exceeds targets, the new Tier 1 XPU program ramps smoothly into volume production, or XPU attach programs show stronger-than-forecasted demand. Bearish if program delays or demand softness.	Company earnings releases, investor conference calls, customer announcements (if public), industry analyst reports on custom silicon/ASICs.	Hyperscaler earnings calls (for CapEx and custom chip mentions), industry news on AI accelerator development.	TechInsights: Custom ASIC Market Analysis, Gartner: AI Chip Market Share
Data Center Revenue Growth and Overall Revenue Guidance Updates	Marvell's core growth engine is its Data Center business, which is driving overall company revenue acceleration and increased financial outlooks for fiscal years 2027 and 2028. Sustained or further acceleration indicates strong market demand and execution.	Sequential and year-over-year growth rates for Data Center revenue. Specific targets include Q2 FY27 mid-to-high teens sequential growth and mid-40% year-over-year growth. Overall FY27 revenue target of approximately $11.5 billion (40% YoY growth) and FY28 revenue target of approximately $16.5 billion (45% YoY growth).	Bullish if Data Center revenue growth exceeds mid-to-high teens sequentially in Q2 FY27 and mid-40% year-over-year, or if FY27/FY28 revenue outlooks are further raised. Bearish if growth rates fall short of guidance or outlooks are lowered.	Company earnings releases, investor conference calls, SEC filings (10-Q, 10-K).	Industry analyst reports (e.g., Gartner, IDC) on data center infrastructure spending, hyperscaler CapEx announcements.	Bloomberg Terminal: MRVL Consensus Estimates, FactSet: MRVL Revenue Forecasts
Interconnect Business Revenue Growth (1.6T, DCI, Scale-up Optics)	The interconnect business, encompassing 1.6T PAM solutions, DCI modules, and scale-up optics, is a major driver of Marvell's data center growth and a key beneficiary of AI infrastructure build-out.	Interconnect business revenue growth rate (FY27 target >70% YoY). DCI module business reaching a $1 billion annualized revenue run rate in FY28. Scale-up optics revenue more than doubling its prior outlook of approximately $150 million next fiscal year. Sampling of 1.6T ZR and ZR+ DCI modules this year.	Bullish if interconnect growth exceeds 70% year-over-year in FY27, DCI module run rate accelerates towards $1 billion, or scale-up optics revenue ramps faster than expected. Bearish if these targets are missed or product sampling/ramps are delayed.	Company earnings releases, investor conference calls, product announcements, industry trade shows (e.g., Optical Fiber Conference - OFC).	Optical Fiber Conference (OFC) presentations/news, industry publications covering optical networking, competitor announcements.	LightCounting: Optical Transceiver Market Report, Yole Group: Silicon Photonics Market Analysis

Key Reported Metrics, Reratings Triggers & ResultsTable

Total Revenue reflects the overall top-line performance and growth trajectory of the company. Marvell has consistently raised its revenue outlook, making this a

No data for this section.

Key Questions

Will Marvell meet or exceed its Q2 fiscal 2027 revenue guidance of $2.7 billion, demonstrating continued strong execution in ramping its interconnect business,

Will Marvell meet or exceed its Q2 fiscal 2027 revenue guidance of $2.7 billion, demonstrating continued strong execution in ramping its interconnect business, including 1.6T solutions and DCI modules?

Question 2: How will Marvell's new Tier 1 XPU program progress towards volume production, and will the demand for XPU attach programs, particularly CXL memory attach, continue to exceed prior forecasts in the near term?
Question 3: Can Marvell effectively manage its operating expenses and strategic prepayments to drive non-GAAP operating margin expansion towards its fiscal 2028 target of 38-40%, despite ongoing R&D investments?

Earnings Transcript SummaryTable

2026-05-27 · 2027Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Accelerating Data Center business growth, particularly interconnect and custom silicon: Management emphasized strong demand and exceptional bookings across their data center portfolio, with interconnect business expected to grow more than 70% year-over-year in fiscal 2027 and custom business to more than double in fiscal 2028. They also highlighted increased revenue outlooks for fiscal 2027 and fiscal 2028 driven by data center performance. 2. Strategic investments in AI opportunities and technology leadership: This includes the expanded partnership with NVIDIA (Optics partnership, NVLink Fusion integration, AI-RAN), the acquisition of Polariton for plasmonic-based silicon photonics, and continued aggressive investment in scale-up optics and switching solutions (UALink, ESUN, NVLink). They aim to establish leadership across multiple photonic technologies and architectures. 3. Securing supply chain capacity and driving operating leverage: Management discussed efforts to secure additional capacity through long-term demand outlook sharing with suppliers and strategic prepayments (approximately $1 billion in fiscal 2027). They also aim to drive operating leverage, expecting non-GAAP operating expense growth to be significantly below revenue growth in fiscal 2028, leading to higher operating margins.	Marvell is experiencing an accelerated multi-year growth cycle, primarily driven by robust demand in its data center business, especially in interconnect and custom silicon for AI infrastructure. The company is strategically investing in advanced technologies and partnerships (like NVIDIA, Polariton, XConn) to extend its leadership in high-speed connectivity and AI-specific solutions. Management is confident in its ability to secure necessary supply and drive operating leverage. The outlook for both fiscal 2027 and fiscal 2028 has been significantly raised. The overall tone of the call was highly positive and confident, with management frequently using terms like 'record revenue,' 'strong demand,' 'exceptional bookings,' 'accelerating growth,' and 'uniquely positioned.'	Data Center: 21% year-over-year growth; Communications and other end market: 26% year-over-year growth.	1. Custom XPU $10 billion target for fiscal 2029 and new customer program details: Vivek Arya asked for confirmation on the $10 billion target and more details on the large new customer program. Matt Murphy confirmed the target, attributing it to a larger total addressable market (TAM) and progress with existing programs, new ramps, and XPU attach programs. He stated the new program is on track and a key part of the plan for next year, contributing about one-third of the total custom business growth, but did not provide additional customer details. 2. Breadth of the customer base and potential expansion into compute TAM: Timothy Arcuri inquired about the breadth of Marvell's customer base beyond existing XPU and XPU attach customers, specifically asking if they were moving into the compute TAM. Matt Murphy responded that they have custom engagements across all U.S. hyperscalers, and the forecast is based on already won designs. He emphasized their competitive technology platform, especially high-speed I/O and SerDes performance, which is driving new opportunities, but did not explicitly confirm moving into the compute TAM as incremental to the current forecast. 3. Capacity constraints and how Marvell is addressing them: Chris Caso asked for more color on how Marvell is managing to get additional capacity and if the increased guidance is due to securing more capacity or increased comfort with customer forecasts. Chris Koopmans (President and COO) explained that they manage by building tight relationships with key suppliers, providing 5-year forecasts, and making prepayments to back their forecasts with confidence and cash. He indicated that everything touching AI has been constrained, and their approach helps them deliver on revenue capabilities.	Total Revenue: 28% year-over-year growth; Data Center: 27% year-over-year growth; Communications and other end market: 29% year-over-year growth.

Transcript TidbitsTable

2026-05-27

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Marvell expects its expanded partnership with NVIDIA to create new market opportunities for both companies. The push to build significantly larger AI clusters spanning multiple data centers is creating a 'scale across' use case, where the back-end AI network must extend between data centers, projected to have more than 10x higher aggregate bandwidth requirements than current front-end DCI networks. This will significantly expand the pluggable DCI TAM. Scale-up Interconnect is identified as one of the newest and most strategically important opportunities in AI infrastructure, representing a 'massive new TAM' that Marvell is aggressively investing in. The acquisition of XConn expanded Marvell's portfolio with PCIe and CXL switch solutions, with strong interest in PCIe Gen 6 and CXL 3.1. Marvell remains confident in its custom business achieving over $10 billion in revenue in fiscal 2029. The company also sees significant upside in its traditional DSP business, DCI ramping, and new initiatives like retimers, AECs, and scale-up optics, which is seen as the beginning of a major growth cycle.	Marvell views itself as uniquely positioned to bridge NVIDIA's architectures with custom chips and networking semiconductors. The company is exceptionally well positioned to lead the 1.6T ZR and ZR+ DCI module transition with the industry's first secure modules. Marvell is uniquely positioned to enable both NPO and CPO implementations with the industry's broadest silicon photonics platform, spanning MZM, EAM, and MRM modulator technologies. The company's 100 platform is believed to deliver industry-leading power efficiency and low latency for AI infrastructure. Marvell is uniquely positioned to support UALink, ESUN, and NVLink scale-up protocols through internal development and its NVIDIA partnership, leveraging decades of experience in large reticle size switch silicon and best-in-class high-performance SerDes technology. Management believes that only a couple of companies can achieve the necessary level of performance integration for high-speed I/O and SerDes. Marvell highlights its unique advantage of having the 'absolute broadest range of connectivity and scale up and scale out solutions for interconnect in the industry', and its ability to offer comprehensive end-to-end system solutions rather than just individual components.	The industry is seeing a significant shift where networking is becoming increasingly critical with each new generation of AI infrastructure, especially as more complex architectures like reasoning modules and mixture of experts deploy. There is a massive expansion expected in 'scale-up networks' requiring high radix, low latency switches and high bandwidth optical interconnects. New AI models are driving innovation in memory architecture, benefiting XPU attach businesses. The emergence of 'agentic AI' is expected to supercharge demand for scale-out, scale-up, and XPU attach businesses, leading to a significant increase in CPU deployments in AI infrastructure. Optics is clearly seen as the future of data center connectivity. The DCI market is undergoing a major architectural transition driven by 'scale across networks' as AI clusters span multiple data centers. The limitations of PCIe are expected to drive a rapid transition towards purpose-built, large radix, high-bandwidth UALink, ESUN, and NVLink solutions for scale-up networking. Concerns around the memory cycle are driving additional adoption of CXL-based designs.	Marvell expects Q2 revenue to grow double digits sequentially, with Q3 and Q4 also growing by at least 10% sequentially, leading to $3 billion in quarterly revenue in Q3, one quarter ahead of prior outlook. Overall fiscal 2027 revenue is now expected to grow approximately 40% year-over-year to nearly $11.5 billion, with the interconnect business growing more than 70% year-over-year. For fiscal 2028, Marvell anticipates cloud CapEx growth to moderate to the 30%+ range, but expects data center revenue growth to continue at approximately 55% year-over-year, accelerating from fiscal 2027. Overall company revenue is projected to grow approximately 45% in fiscal 2028, reaching approximately $16.5 billion, which is $1.5 billion higher than the previous outlook. The custom business is expected to more than double year-over-year in fiscal 2028. Quarterly revenue for TIAs and drivers is expected to exceed a $1 billion annualized run rate in the next few quarters. The DCI module business has line of sight to $1 billion annualized revenue during fiscal 2028. Scale-up optics revenue is forecasted to more than double its prior outlook of approximately $150 million next fiscal year. Scale-out switch revenue is expected to exceed $600 million in fiscal 2027, doubling from fiscal 2026, and track to over $1 billion in annualized revenue in fiscal 2028. Marvell aims to achieve the upper end of its target operating margin model of 38% to 40% as it progresses through fiscal 2028.	CXL	Agentic AI is emerging as a significant driver of demand for AI infrastructure, increasing data traffic, memory requirements, and CPU deployments. The concept of 'scale across' networks for massive AI clusters spanning multiple data centers is also a new architectural trend.	Marvell delivered record revenue of $2.418 billion, reflecting 9% sequential and 28% year-over-year growth. We are seeing strong demand and exceptional bookings across our entire data center portfolio. We now expect $3 billion in quarterly revenue in Q3, one full quarter ahead of our prior outlook. We now expect overall Marvell revenue in fiscal 2027 to grow approximately 40% year-over-year to nearly $11.5 billion. We now expect Marvell's fiscal 2028 revenue to reach approximately $16.5 billion, roughly $1.5 billion higher than the outlook we provided on our earnings call last quarter. Our investments in securing supply are paying off, enabling us to scale the business every quarter. Our data center business is on fire, and we're projecting accelerating revenue growth for this year and next year already from a strong base.	For our communications end market, we continue to expect low single-digit percentage revenue growth in fiscal 2028 consistent with our prior view. For the second quarter, we expect revenue to decline in the mid-single-digit range sequentially on a percentage basis, while growing in the high single-digit range year-over-year on a percentage basis.	The acquisition of XConn substantially expanded Marvell's team and capabilities. The company intends to continue to invest in growing its business and strategically increase R&D investments in the highest growth AI opportunities, which implies potential workforce expansion.

Upcoming EventsTable

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