Marvell forecasts 40% annual revenue growth to $11.5 billion, driven by AI data center demand despite recent share declines.
Marvell Technology (NASDAQ: MRVL) shares have fallen 37% from their highs as investors retreat from AI-linked stocks and question aggressive infrastructure spending. The pullback contrasts with the company’s 28% year-over-year revenue growth and optimistic long-term outlook for data center demand.
Management now expects 40% annual revenue growth to $11.5 billion, with data center revenue projected to rise 50% in fiscal 2027 and accelerate to 55% in fiscal 2028. Marvell’s optical interconnects and Ethernet switches, critical for AI workloads, are seeing strong demand, prompting a doubling of revenue forecasts for near-packaged and co-packaged optics to $300 million next fiscal year.
The company positions itself as a key supplier for AI data centers, emphasizing faster, lower-latency processing solutions to meet growing bandwidth needs.