Marvell Raises Growth Outlook Three Times Since December Despite Stock Decline
Marvell Technology has raised its revenue outlook three times since December as it continues to benefit from strong demand in the AI data center market. CEO Matt Murphy highlighted Marvell's position as a key supplier working with all four major U.S. cloud computing companies, and management now expects fiscal 2027 data center revenue of $12 billion—up from an initial forecast of about $10 billion—and $18 billion for the following year. Despite these optimistic projections and significant quarterly growth in both overall revenue and data center sales, Marvell's stock remains nearly 28% below its 52-week high. The decline has been attributed to concerns over lower gross margins from custom AI chip production and increased competition, such as a recent partnership between Qualcomm and Amazon. Marvell’s financial performance shows consistent acceleration in revenue growth across the past three quarters, with data center sales reaching $2.17 billion (or 79% of total revenue) during its fiscal second quarter.
Tickers: $MRVL
Topics: AI CEO commentary data centers semiconductors