Can Marvell Technology Sustain Its AI Data Center Growth Momentum? – June 9, 2026
Can Marvell Technology Sustain Its AI Data Center Growth Momentum? – June 9, 2026
Publish Date: 2026-06-09 09:32:00
Source Domain: www.zacks.com
Key Takeaways
- Marvell Technology posted record $2.418B Q1 FY2027 revenues, with data center contributing 76% of sales.
- MRVL expects interconnect revenues to rise more than 70% and scale-out switches to top $600M in FY2027.
- Marvell Technology sees custom revenues up 20% in FY2027 and more than doubling in FY2028.
Marvell Technology’s (MRVL Quick QuoteMRVL – Free Report) data center business is gaining strong traction as AI spending from large cloud customers continues to rise. With AI server deployments increasing, demand for faster networking, lower latency and higher bandwidth is expanding across MRVL’s interconnect portfolio.
In the first quarter of fiscal 2027, Marvell Technology delivered record revenues of $2.418 billion, and the data center segment accounted for 76% of total revenues. Marvell Technology’s interconnect and switching businesses are showing particularly strong momentum. The company now expects interconnect revenues to grow more than 70% year over year in fiscal 2027.
MRVL’s scale-out switch revenues are expected to exceed $600 million in fiscal 2027 and reach more than $1 billion annualized run rate in fiscal 2028. Stronger demand for 1.6T solutions, coherent light and scale-up networking provides a broader opportunity in scale-up optics.
Custom silicon is another major growth driver. MRVL said custom revenues remain on track to grow more than 20% year over year in fiscal 2027, led by its flagship XPU program and XPU attach programs in NIC and CXL. For fiscal 2028, the company now expects custom revenues to more than double year over year.
Furthermore, MRVL’s expanded partnership with NVIDIA further strengthens its position in next-generation AI infrastructure, linking Marvell Technology’s custom silicon and optical networking capabilities with NVLink Fusion, optics and AI-RAN opportunities.
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