Marvell impresses Wall Street with strong earnings and a much bigger long-term outlook

Marvell Technology gave Wall Street a growth story it could not ignore. At its Investor Day on October 6, 2026, CEO Matt Murphy laid out a fiscal 2031 revenue target of between $70 billion and $90 billion.

For context, the company’s expected fiscal 2026 revenue is $8.2 billion. Murphy is pitching a business roughly an order of magnitude larger within about five fiscal years, and investors seemed willing to hear him out.

Shares of Marvell (MRVL) climbed nearly 8% intraday after the presentation.

The numbers behind the hype

The long-range target did not arrive in a vacuum. It followed Marvell’s fiscal Q2 2027 report, which showed record quarterly revenue of $2.74 billion.

That figure was up 37% year-over-year.

The real engine was the data center. That segment brought in $2.17 billion in the quarter, a 46% increase from a year earlier.

Data-center sales made up 79% of total revenue.

Management also lifted its full-year view. Marvell now sees fiscal 2027 revenue of approximately $12 billion, which would represent about 45% growth year over year.

Within that, the company anticipates data-center growth of nearly 60%.

The medium-term target moved too. Marvell revised its fiscal 2028 revenue guidance up to approximately $20 billion, from a prior estimate of around $18 billion.

What Marvell actually sells

The company identified three main growth drivers: AI connectivity, custom silicon and optical solutions.

AI connectivity refers to the hardware that links thousands of processors so they can work as one giant computer. Training large AI models requires constant, high-speed communication between chips, and bottlenecks there can waste expensive compute.

Custom silicon means designing chips tailored to a specific customer’s workloads. Large cloud operators increasingly want processors built for their own needs instead of buying only off-the-shelf parts, and Marvell helps design and build them.

Optical solutions use light instead of electrical signals to move data. Over longer distances and at higher speeds, optics can carry more information with less power, which matters when data centers are scaling up rapidly.

Why the long-term target matters

A $70 billion to $90 billion fiscal 2031 range is notably wide. The $20 billion spread between the low and high ends is larger than the company’s entire fiscal 2028 target.

What this means for investors and the AI trade

With data centers making up 79% of revenue, the stock’s fortunes are now tightly linked to AI capital spending.

The most useful checkpoints will be the next few quarterly reports. Investors will want to see whether Marvell stays on track for approximately $12 billion in fiscal 2027 revenue and nearly 60% data-center growth.

Progress toward the roughly $20 billion fiscal 2028 target will be the next real test.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.