Marvell CEO States AI Orders Are Surging — Analyst Predicts Significant Growth Potential

Marvell Technology Positioned for AI-Driven Expansion

According to a JPMorgan analyst, Marvell Technology, Inc. (NASDAQ: MRVL) is strategically set to benefit from the upcoming surge in artificial intelligence advancements.

• Marvell's stock is experiencing a decline today。

Strong AI Demand and Data Center Growth

JPMorgan’s Harlan Sur has reiterated an Overweight rating on Marvell, emphasizing the company’s positive outlook for AI. Insights from a recent discussion with CEO Matt Murphy and SVP of Investor Relations Ashish Saran revealed that Marvell is seeing robust demand, greater visibility, and accelerating growth opportunities.

Murphy described short-term AI bookings as exceptionally strong, indicating continued momentum despite investor concerns about a possible slowdown in AI-related spending.

Sur noted that Marvell’s backlog and revenue outlook remain solid. The company’s fourth-quarter bookings held up well through the holiday season, supporting a multi-year expansion in data center infrastructure.

Management projects that the data center segment will expand by approximately 25% in 2026, with growth expected to accelerate to 40% in 2027 as new initiatives are launched.

Custom AI Chips Fuel Revenue Growth

Sur highlighted that Marvell’s custom AI ASIC business is expanding, which should result in a significant increase in revenue.

The company anticipates generating about $1.8 billion in custom AI revenue in 2026, a 20% increase from the previous year, and expects this figure to double to $3.6 billion by 2027.

This growth is largely driven by a strong ramp-up with its primary XPU customer, Amazon’s Trainium 3, which is on track for a $2 billion annualized run rate in the second half of the year.

Additionally, Marvell is bringing 15 XPU-attach sockets into production and advancing projects with several clients, including a third major XPU customer, Microsoft, which is moving toward production.

Sur believes that, over time, more AI training and inference tasks will transition to adaptable, programmable ASIC architectures.

Networking Growth and Strategic Expansion

The analyst also pointed out that Marvell is experiencing strong momentum in networking, with optical networking revenue outpacing overall data center capital expenditures.

Marvell is on course to achieve $500 million in switching silicon revenue this year, supported by the rollout of new products such as its 51.2T switch.

Advanced Ethernet cabling and retimers are scaling rapidly, with revenue doubling year-over-year to several hundred million dollars as industry adoption of PAM-based technologies increases.

Marvell’s position in scale-up networking is strengthened by a combination of internal innovation and strategic acquisitions.

The company continues to expand its offerings through disciplined mergers and acquisitions and effective supply chain management.

The acquisition of XConn Technologies has enhanced Marvell’s scale-up switching capabilities and complements its PCIe and CXL solutions. Meanwhile, the over $5 billion purchase of Celestial AI has deepened relationships with customers in photonic fabric technology.

Marvell is also securing its supply chain by forging long-term partnerships and aligning demand forecasts with suppliers, ensuring the company is well-prepared for ongoing AI-driven growth.

Stock Performance

MRVL Price Update: As of Wednesday, Marvell Technology shares had fallen 4.44% to $84.31。

Image credit: Shutterstock