Marvell sees custom chip revenue topping $10 billion by 2029 as AI demand grows

Marvell Technology forecasted on May 27 that its custom chip business will surpass $10 billion in revenue by fiscal 2029, fueled by AI-driven demand for specialized processors in cloud data centers. The surge in AI adoption has increased reliance on custom chips to reduce dependency on Nvidia’s processors, with Marvell’s interconnect technologies playing a key role in linking thousands of processors for AI training and operations. The company’s shares have more than doubled this year, reflecting strong market confidence. Analysts noted the $5 billion incremental revenue growth from fiscal 2028 to 2029, signaling robust expansion. Marvell revised its 2028 revenue forecast upward to $16.5 billion, up from $15 billion, with second-quarter revenue expected at $2.70 billion, exceeding analyst estimates of $2.60 billion. CEO Matt Murphy confirmed Marvell’s custom chip engagements span all major U.S. hyperscalers, including Alphabet and Amazon, which are investing over $700 billion in AI infrastructure this year—up from $400 billion in 2025. Marvell’s data center business is projected to grow 50% annually, with first-quarter revenue hitting $2.42 billion, surpassing estimates of $2.40 billion. Marvell and Broadcom collaborate to design custom chips tailored to hyperscalers’ data center needs, capitalizing on increased capital spending. The company’s high-speed connectivity solutions are critical for AI-driven data centers, positioning it as a key beneficiary of the AI boom. First-quarter adjusted profit reached 80 cents per share, exceeding expectations of 79 cents.