Marvell Technology’s data center switching business is poised for rapid expansion, with revenues forecast to exceed $300 million in fiscal 2026 and climb past $500 million in fiscal 2027 as its next-generation switching platforms come online. The company secured design wins with four of the top five cloud service providers last quarter, and test shipments of its 800Gbps chips have already begun. Marvell expects these products to address the growing need for higher bandwidth and lower latency in large-scale data centers, driving segment growth of more than 40% year-over-year through fiscal 2028.

Marvell’s custom AI processor division reported 51% revenue growth in the past year, driven by design wins with three major hyperscale customers and plans to expand its customer base to over 10 by the end of 2026. The unit has secured contracts for more than 50 unique chip designs, targeting inference and training workloads. Despite this strong momentum, Marvell trades at a forward earnings multiple of 23x, below the Nasdaq-100 average of 26x. Management projects AI revenue to contribute 20% of total sales by fiscal 2027, positioning the company as a value opportunity for investors seeking exposure to artificial intelligence hardware.