New York, May 31, 2026, 18:03 (EDT)
- Marvell ended Friday at $205.00, gaining roughly 4.4% over the holiday-shortened week.
- The company bumped up its AI-led revenue forecast after it posted record sales for the fiscal first quarter.
- Broadcom earnings and Friday’s U.S. jobs report are key tests for chip stocks this week.
Marvell Technology is set to open Monday trading close to the highs it reached in a strong 2026 stretch, as last week’s results pushed some investors to buy up the chipmaker on hopes for more artificial-intelligence revenue, though some remained cautious. The Nasdaq-listed shares finished Friday at $205.00, a gain of 0.08% for the session and roughly 4.4% above the previous Friday’s $196.33 close. Nasdaq is closed Sunday and trades between 9:30 a.m. and 4 p.m. ET on weekdays.
Marvell’s story has changed. Investors now want to know how much of the AI chip hype will show up in actual, lasting revenue from hyperscalers, not just if the demand is real. These large cloud companies buy huge amounts of computing and networking kit. Reuters said last week that Marvell shares had already more than doubled this year, with custom-chip and data-center businesses pulling in new interest from investors.
Marvell posted record revenue in its fiscal first quarter, with sales coming in at $2.418 billion, 28% higher than a year ago. Non-GAAP net income was $718.0 million, or 80 cents a share. Operating cash flow reached a record $638.8 million, Marvell said.
Marvell Chairman and CEO Matt Murphy said the company expects revenue growth to keep picking up each quarter through fiscal 2027, pointing to its data-center segment as the main driver. Murphy noted “exceptional AI-related bookings” and said Marvell is lifting its revenue outlook for fiscal 2027 and 2028. Marvell Technology, Inc.
Data-center revenue hit $1.833 billion, about 76% of overall sales, up 27% from last year. This is Marvell’s unit for chips and connectivity powering AI servers, data-center switches and gear that transfers data between processors.
Custom silicon is turning into the main driver. These are chips built for specific customers, not general-purpose. Marvell said revenue from this business could pass $10 billion in fiscal 2029. The company also lifted its overall revenue view for fiscal 2028 to about $16.5 billion, up from $15 billion. Morningstar analyst William Kerwin said the custom-chip forecast points to “$5 billion in incremental revenue” between fiscal 2028 and 2029. Reuters
Marvell and bigger competitor Broadcom both work with cloud-computing clients on custom chip design, Reuters reported, as the industry looks for ways to use fewer Nvidia processors in AI setups. “We have custom engagements across the board at all the U.S. hyperscalers,” Murphy told analysts. Reuters
Chip stocks lifted the market last week. The Nasdaq Composite finished up 2.4% and the S&P 500 added 1.4%, AP reported. The Philadelphia Semiconductor Index jumped about 5.1% to 12,829.4 from May 22 through Friday. Marvell moved higher too, but didn’t outpace other semiconductor names.
There are risks for Marvell. The company flagged problems in forecasting customer demand and leaning on a handful of big customers. It also mentioned data-center concentration, clients making their own tech, supply-chain issues, trade limits and uncertain macro conditions. Hits to AI infrastructure spending, losing a custom-chip deal, or margin trouble could make Marvell’s current price hard to justify.
Markets have plenty on deck this week. Broadcom posts its latest quarter after the bell Wednesday, putting the AI custom-chip trade in focus again. The U.S. jobs report lands Friday at 8:30 a.m. ET. Reuters reports economists are looking for May payrolls up by 85,000 and the jobless rate steady at 4.3%. A stronger-than-expected number could push up rate bets.
Marvell heads into Monday with AI momentum and a new revenue target, but after last week’s guidance, traders will decide if that’s a reason to stick around or lock in gains. The stock’s caught a sector tailwind, but the price is looking tight for anyone expecting more upside.
