Marvell Hikes AI Chip Outlook, Shares Jump 7%

On June 18, Marvell Technology significantly revised its forecast for the total addressable market (TAM) of its custom AI silicon solutions, raising the estimate from $43 billion to $55 billion by 2028. The announcement was made during a company-hosted webinar and sparked strong investor confidence, sending Marvell's shares up 7.09% to close at $74.95—the highest closing price since March 5.

Marvell revealed it has added two new hyperscale cloud clients to its growing roster, alongside existing collaborations with Amazon, Microsoft, and Google. In total, the company highlighted over 50 custom chip development engagements across a range of enterprises, potentially translating into $75 billion in long-term revenue opportunities.

Although Marvell did not disclose the identities of the new cloud partners, industry speculation points to emerging AI players such as OpenAI and Elon Musk's xAI.

Ben Reitzes, an analyst at Melius Research, noted that while the webinar reaffirmed confidence in Marvell's strategic direction, it did not fully alleviate concerns about data center revenue growth in 2025 and 2026. Reitzes emphasized the importance of monitoring developments surrounding Microsoft's “MAIA” accelerator and Amazon Web Services' upcoming “Trainium 3” AI processor, both of which could shape the competitive landscape.