Marvell Raises Fiscal 2028 Revenue Outlook to $20 Billion on Data-Center Demand

Stronger demand for the connections inside data centers has added $2 billion to Marvell’s fiscal 2028 revenue outlook. At its October 6 investor day, the chipmaker raised that target to $20 billion and forecast $70 billion to $90 billion in total revenue for fiscal 2031, according to CNBC’s account of the announcement.

The new fiscal 2028 target replaces the $18 billion guidance Marvell issued alongside its fiscal 2027 second-quarter results in late August. Shares rose more than 6% during Tuesday’s trading in response to the investor-day outlook. The announcement sets out management’s expectations across several years, rather than revenue the company has already recorded.

Connections drive the nearer-term upgrade

Marvell attributed the entire $2 billion increase to stronger demand for data-center connectivity products, including scale-up optics and switching. These technologies help data move within server racks and between them. They connect the equipment inside a data center, making the upgrade a specific signal about networking demand rather than an unspecified increase across Marvell’s businesses.

Custom chips supply another part of the growth forecast. Marvell expects that business to triple in fiscal 2029 from fiscal 2028, reaching more than $12 billion. Amazon and Alphabet are among its major customers. That projection concerns one business line and a later fiscal year; it is separate from the connectivity demand behind the fiscal 2028 guidance increase.

A long-range target above Wall Street’s estimate

For fiscal 2031, Marvell’s total-company revenue range sits well above the $47 billion analyst consensus compiled by FactSet and cited by CNBC. Even the lower end of management’s forecast exceeds that estimate by $23 billion. The gap shows how much stronger a growth trajectory Marvell is projecting than analysts had built into their expectations.

Supporting those longer-range targets is Marvell’s expectation that data-center capital expenditures—spending on infrastructure—will reach $3 trillion by 2030. The company projects approximately 35% compound annual growth from 2025 through 2030. That spending forecast describes the broader data-center buildout, not revenue flowing solely to Marvell.

Marvell does not assume today’s spending growth rate holds throughout the period. Its forecast allows growth to moderate and move closer to historical levels in the later years. Management is therefore projecting a much larger infrastructure market even with a slowdown built into its assumptions. Whether spending follows that path remains a forecast, not a completed outcome.