Marvell Raises Fiscal 2028 Revenue Outlook to $20 Billion Amid AI Demand

Marvell Technology updated its fiscal 2028 revenue outlook to about $20 billion. This latest projection follows a previous estimate of approximately $18 billion, which was shared during the company's fiscal Q2 2027 results in late August 2026. Prior to that, the company had estimated fiscal 2028 revenue at $16.5 billion.

For the current fiscal year 2027, Marvell anticipates revenue of roughly $12 billion, marking a year-over-year growth of about 45%. Data center revenue remains a primary contributor, accounting for 79% of the company's $2.739 billion total revenue in fiscal Q2 2027. This segment saw a 46% increase compared to the previous year, and the company expects growth in this area to exceed 60% for fiscal 2027.

CEO Matt Murphy attributed the majority of the fiscal 2028 revenue uplift to connectivity products, specifically 1.6T optical signal processors and scale-up optics. While Marvell maintains a multi-year agreement with Google covering up to 58.97 million shares, Murphy noted that this deal is expected to have a more substantial impact starting in fiscal 2029. If specific milestones are achieved, the Google agreement could reach a value of $120 billion by fiscal 2033.

Marvell is currently developing custom silicon programs for Amazon, Alphabet, Microsoft, and Meta. The company also projects the broader AI market will reach $400 billion by 2030.

Because the fiscal 2028 revenue increase is driven by connectivity rather than the Google partnership, the company's outlook does not rely on that specific deal ramping up on schedule. However, given that data center revenue represents 79% of total earnings, Marvell remains sensitive to the capital spending budgets of its hyperscaler clients. Any slowdown in AI investment from Amazon, Alphabet, Microsoft, or Meta could impact the company's performance.