New York, May 28, 2026, 13:03 (EDT)
Marvell Technology traded higher Thursday. The chipmaker now sees annual custom-chip revenue topping $10 billion by fiscal 2029. Shares climbed 2.4% to $203.50 with roughly 34.5 million shares changing hands. The stock hit $210.70 earlier.
Marvell isn’t getting priced just as a networking chip supplier anymore. Investors now see it as a clearer way to get into the AI data center build-out, since cloud giants want both custom silicon made for their needs and fast interconnect gear to move data between chips, servers, and racks.
Marvell operates in the middle, between Nvidia and the cloud giants. Nvidia continues to lead in AI accelerators, but Amazon, Alphabet and other big cloud operators are directing more money to custom chips to manage their costs, power, and supply. That custom-chip business is mainly where Broadcom competes with Marvell.
Marvell Technology, Inc. posted first-quarter revenue of $2.418 billion, a 28% jump over the same period last year, with non-GAAP earnings at 80 cents per share. Non-GAAP earnings remove impacts like stock-based pay and acquisition charges. CEO Matt Murphy said the company is getting “exceptional AI-related bookings.” For the July quarter, Marvell put revenue guidance at $2.7 billion at the midpoint. Marvell Technology, Inc.
Marvell’s GAAP net income dropped to $34.5 million, or 4 cents a share, from $177.9 million last year, as acquisition charges, stock comp, and other non-cash items weighed, the Wall Street Journal reported. Adjusted earnings were in line with analyst forecasts. Revenue landed roughly on expectations, maybe a touch higher.
Still, investors kept their attention on Marvell’s forward orders. Reuters quoted Morningstar analyst William Kerwin, who put the custom-chip outlook at “$5 billion in incremental revenue from FY28 to FY29.” CEO Murphy, on the call, told analysts Marvell has custom chip work “across the board at all the U.S. hyperscalers.” Reuters
Marvell’s data center revenue hit $1.83 billion, accounting for 76% of sales for the quarter. The shift is clear—Marvell is moving away from its legacy communications, storage and enterprise markets. The business is now centering on AI infrastructure, and investors are backing the change as AI capital spending keeps up the pace.
On the call, Murphy said Marvell still has “line of sight to hit those targets” around custom silicon. Chief Financial Officer Willem Meintjes said the company was “aggressively locking in additional capacity” and expects about $1 billion in prepayments this fiscal year to secure supply. That points to strong demand, but also heavier execution. Insider Monkey
Marvell picked up a big boost from Nvidia in March. The two struck a deal on Nvidia’s NVLink Fusion platform, which lets outside chips connect with Nvidia AI hardware. Nvidia put $2 billion into Marvell at the same time. Nvidia CEO Jensen Huang said the “inference inflection has arrived.” Marvell CEO Murphy said the partnership ties Marvell’s optical, analog and custom silicon to Nvidia’s AI ecosystem. Marvell Technology, Inc.
Chip stocks had a good day. The iShares Semiconductor ETF was up 1.9%, Invesco QQQ Trust added close to 0.9%. Broadcom moved 1.3% higher, Nvidia gained 0.5%. Marvell outperformed the group, but the whole chip and AI space caught bids.
Marvell’s simple AI pitch could also leave it exposed. The company has said it relies on a handful of big buyers, and those firms might turn to making chips in-house or switch to others. Supply-chain hiccups, tariffs, or new trade rules could squeeze demand, output, or profit. If cloud spending drops or a key custom-chip project stalls, the stock’s rally this year could fade fast.
Right now, traders are betting the other way. Next up is seeing if Marvell can top its $2.7 billion revenue forecast for the July quarter and keep margins climbing. The company has been spending to secure more capacity for AI programs that are still building up.
