Marvell's Custom AI Chip Deals with Hyperscalers Could Drive Significant Revenue Growth
Marvell Technology has raised its revenue outlook to $18 billion for fiscal 2028, driven by a surge in custom silicon deals. The company reported more than 20 design wins across major cloud providers like Amazon, Alphabet (GOOG), Microsoft, and Meta Platforms. A recent six-year agreement with Google is expected to generate up to $120 billion in cumulative revenue if certain milestones are met. Marvell's CEO highlighted the potential for custom silicon business to more than double by fiscal 2028 and accelerate further into 2029, supported by increased demand from hyperscalers deploying AI chips. The company expects its adjusted operating margin to rise as it scales revenue while managing expenses carefully. However, Marvell faces risks related to supply chain disruptions in Asia and potential regulatory headwinds for the data center industry. The stock is currently priced with high expectations, reflecting confidence in Marvell's ability to capitalize on AI-driven compute demand.
Topics: AI chips custom silicon data center growth Google partnership Marvell Technology