Marvell Forecasts 55% Data Center Growth, $1B Prepayments for Capacity
MRVL•Marvell’s data center business grew 46% last fiscal year and management projects growth accelerating to 50% this year and 55% next year, driven by AI infrastructure interconnect demand now forecast to exceed 70%. The company plans $1 billion in supplier prepayments to secure capacity and aims for $16.5 billion revenue in fiscal 2028, $1.5 billion above prior guidance.
1. Growth Acceleration Roadmap
Marvell’s data center segment expanded by 46% in its last fiscal year, and management now projects growth accelerating to 50% this year and 55% in the following year, defying typical scale slowdowns.
2. AI Infrastructure Business Drivers
Demand for Marvell’s AI infrastructure interconnect products has led the company to raise its growth forecast for that unit to over 70%, while its custom chip division is expected to more than double by fiscal 2028.
3. Capacity Secured with Prepayments
To mitigate supply constraints, Marvell is locking in additional manufacturing capacity by committing approximately $1 billion in prepayments to its suppliers during the current fiscal year.
4. Upwardly Revised Revenue Target
Backing its aggressive growth outlook, Marvell now forecasts $16.5 billion in revenue for fiscal 2028, which is roughly $1.5 billion higher than the guidance provided just one quarter earlier.
