Marvell Technology further raised its long-term performance targets for the investor day, anticipating that total revenue for the fiscal year 2028 will reach approximately $20 billion, which is higher than the previously set target of $18 billion and also exceeds Wall Street's forecast of around $18.2 billion.
The company also expects that its revenue for the fiscal year 2031 will reach $70 billion to $90 billion, which is significantly higher than Wall Street's current forecast of around $46.85 billion.
This increase reflects that Marvell is more optimistic about the infrastructure demands of AI. The company stated that the demand for data center chips continues to grow, especially as the custom chip business is becoming an important growth engine. The expansion of AI's infrastructure investment has also driven the market's demand for Marvell custom computing and interconnect chips.
After the announcement of the news, the stock price of Marvell rose by nearly 9% at one point, followed by a narrowing of the increase; the stock price of competitor Broadcom rose by about 4% in the early session. The stock price of Marvell has more than tripled this year.
Marvell had already raised its long-term expectations once when it announced its second-quarter results in August. At that time, the company raised its revenue forecast for the fiscal year 2027 to approximately $12 billion and increased its revenue forecast for the fiscal year 2028 from $16.5 billion to approximately $18 billion.
Revenue target for fiscal year 2031 is up to $90 billion, far exceeding expectations
Compared to the $20 billion target for the fiscal year 2028, Marvell has more aggressive expectations for long-term growth.
The company expects its revenue to reach $70 billion to $90 billion in fiscal year 2031, with a median of $80 billion. Based on the revenue of $8.2 billion in fiscal year 2026, this means that the compound annual revenue growth rate for Marvell over the next few years is expected to be around 55% to 60%.
Reuters cites Visible Alpha data, which indicates that 4 analysts have an average forecast for Marvell's revenue for the fiscal year 2031 of approximately $46.85 billion, while the company's target range median reaches $80 billion.
From a business composition perspective, Marvell expects that by the fiscal year 2031, the custom chip business will contribute approximately $30 billion in revenue, while the interconnect business is expected to contribute around $37.5 billion. Both businesses are set to become important pillars of long-term growth.
The company also expects that by 2030, its potential market size will reach approximately $400 billion.
In terms of long-term performance certainty, Marvell disclosed in August this year an agreement with Google. If the relevant performance milestones are achieved on time, this contract is expected to contribute up to $120 billion in sales to the company by the fiscal year 2033. This potential large order provides an important reference for investors to assess the company's future revenue.
