Marvell Technology Has a Hidden Growth Engine That Could Cause MRVL Stock to Skyrocket
/The%20sign%20for%20Marvell%20Technology%20out%20front%20of%20a%20corporate%20office%20by%20Valeriya%20Zankovych%20via%20Shutterstock.jpg "Marvell Technology Has a Hidden Growth Engine That Could Cause MRVL Stock to Skyrocket")
Marvell Technology Has a Hidden Growth Engine That Could Cause MRVL Stock to Skyrocket
Publish Date: 2026-05-15 14:45:00
Source Domain: www.barchart.com
The sign for Marvell Technology out front of a corporate office by Valeriya Zankovych via Shutterstock
I previously wrote how Marvell Technology (MRVL) gained from the custom chip boom brought on by large language model training (LLM). For most of 2025, this was the company’s bull thesis. The more the hyperscalers spent, the more custom chip makers like Broadcom (AVGO) and Marvell (MRVL) benefited. With increasing investments in data centers, new bottlenecks started to emerge. The memory bottleneck, which caused stocks like Micron (MU) and SanDisk (SNDK) to surge higher and higher, is well known to investors. What some may not realize, however, is that the memory chip alone isn’t the issue. A lot of things need to come together to build that memory chip, and optical interconnects are one of them. Why am I pointing out the interconnects specifically? Because they’re what’s driving Marvell’s bull thesis now, not the custom chips.
Why Optical Networking?
The memory bottleneck didn’t just mean there weren’t enough memory chips around. The electrical connections that make these chips possible had hit their physical limit. Copper works well at lower speeds and shorter distances. AI now requires vast amounts of data to travel as fast as possible, giving rise to the need for optical interconnects. These transmit the data via light through fiber, making it possible to work with less latency and higher speeds. They have been around for some time, but artificial intelligence has helped spur their demand to unprecedented levels, and we’re still at an early stage.
The emergence of optical interconnects means that when AI training and inference clusters are working, they can be kept busy at all times and do not have to wait for the data to arrive. This, in turn, removes a critical bottleneck. Marvell makes these optical interconnects and had previously forecast a 30% growth in their interconnects segment. They recently raised it to 50% for fiscal 2027….
