This is even though Chipzilla generates 10 times as much annual revenue and continues to face challenges.
Marvell’s upward trajectory shows no signs of slowing, and some of the cocaine nose jobs of Wall Street have even tipped it to be the next Nvidia.
At the moment, its data centre business offsets weaker performance in its legacy segments, including telecommunications gear, cable TV boxes, and automotive chips. Data centre sales nearly doubled yearly to $1.1 billion in the most recent quarter.
Projections suggest that by the end of the fiscal year in January, the data centre segment will account for approximately 72 per cent of Marvell’s total revenue, up from 40 per cent the previous year.
The company’s future looks equally bright, bolstered by a landmark five-year “multigenerational” deal with Amazon. This partnership involves Marvell assisting Amazon in designing custom artificial intelligence (AI) chips. Amazon, which operates the world’s largest cloud computing service, has been ramping up its internal chip development efforts, aiming to reduce its reliance on Nvidia for key AI components.
At its annual developers conference, Amazon unveiled the next generation of its largest AI chip, Trainium.
Analysts predict that Trainium's contribution to Marvell’s AI custom revenue will more than double in the fiscal year ending January 2026.
Consensus estimates from Visible Alpha project that Marvell’s annual revenue will reach over $8 billion by fiscal 2026, a 40 per cent increase from this year. Further growth of 20 per cent is anticipated for the following year, fueled by Marvell’s production of custom AI chips for another major tech company, widely speculated to be Microsoft.
The custom AI chip industry is forecasted to achieve sales of $30 billion to $50 billion by 2030.
Evercore ISI Analyst Mark Lipacis told his clients Marvell “has the potential to capture one-third of that market.”
Amid Marvell’s impressive performance, speculation has swirled around its CEO as a potential successor to Pat [kicking] Gelsinger, who was recently ousted as Intel’s CEO. Addressing these rumours, Marvell’s CEO Matt Murphy reassured investors that he remains committed to the company during an earnings call.
“The company is outstanding. The technology is best-in-class. I can’t think of a better place to work than Marvell,” he stated.
With its strategic investments in AI and a strong position in the rapidly expanding custom chip market, Marvell appears poised for sustained growth, further cementing its status as a rising leader in the semiconductor industry.
