Marvell Technology shares rose 6% on Tuesday after the chipmaker unveiled bullish long-term revenue targets at its investor day, including a plan for about $80 billion in revenue by fiscal 2031. The company also raised its nearer-term fiscal 2028 outlook, and the update lifted other chip stocks tied to the AI buildout.
Marvell Technology shares rose 6% on Tuesday after the company laid out new long-term revenue targets. Marvell is targeting about $80 billion in revenue by fiscal 2031, which ends in January of that year. The stock has been one of the S&P 500's top performers in 2026, and the investor day update hinted that its growth run could last for years.
Marvell raises its fiscal 2028 outlook
Marvell raised its fiscal 2028 revenue guidance to $20 billion, up from the $18 billion figure it gave alongside its fiscal 2027 second-quarter results in late August. Analysts polled by FactSet had expected $18.17 billion for fiscal 2028. Management said the additional $2 billion is being driven by demand for its data center connectivity products, including interconnect scale-up optics and switching.
The company's custom chip business, which counts Amazon and Alphabet among its major customers, is expected to triple from fiscal 2028 to fiscal 2029, hitting more than $12 billion.
A longer-term bet on AI data center spending
Looking further out, Marvell expects total revenue of $70 billion to $90 billion in fiscal 2031. That compares with a Wall Street consensus of $47.04 billion, according to FactSet.
Management's outlook rests on an assumption that data center capital spending will reach $3 trillion by 2030. That spending is expected to grow at roughly a 35% compound annual rate from 2025 to 2030, though the company said it built in some caution, assuming the pace of growth moderates toward historical levels in later years.
The rally spreads to other chip stocks
The optimism spread across the sector. Nvidia rose about 0.5%. Broadcom jumped more than 4% in its best day since late August. Enthusiasm also returned to other stocks tied to the AI buildout. Ciena climbed 11.3%. Nebius Group gained 9.5% as well.
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