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Marvell forecasts its data center business will grow more than 60% in fiscal 2028 as AI connectivity becomes the primary driver of growth. The company raised its overall revenue target for the period to $18 billion from a previous estimate of $16.5 billion and projects custom chip revenue will more than double.
Scale-up optics demand has accelerated beyond the $300 million FY28 outlook provided last quarter, which includes $150 million from Celestial AI CPO. Marvell also reported that multiple hyperscalers are deploying CXL memory architecture at scale to combat memory scarcity and surging inference demand. Shares declined following the report despite second quarter revenue of $2.73 billion beating estimates.
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Key sources
- SOURCE@jukan05“Scale-up optics has accelerated further from the roughly $300 million FY28 outlook”x.com
- SUPPORT@photoncap“The fiscal 2028 revenue outlook, on the other hand, went from $16.5B to $18B”x.com
- SOURCE@yahoofinance“Q3 revenue guidance: $3.15B vs $3.04B expected”x.com
- SUPPORT@wallstengine“Data Center Revenue: $2.2B; +46% YoY”x.com
- SUPPORT@wallstengine“data center revenue to grow ~60%”x.com
- SUPPORT@wallstengine“CUSTOM CHIP REVENUE IS EXPECTED TO MORE THAN DOUBLE YOY IN FY28 & accelerate significantly in FY29”x.com
- SUPPORT@photoncap“Margin trajectory: slightly disappointing”x.com
- SUPPORT@stocksavvyshay“Gross Margin 59% vs. Est 59%”x.com