AI Boom Drives Marvell $10B Chip Forecast by 2029

According to Marvell Technology, the company expects its custom chip business to generate more than $10 billion in revenue by fiscal year 2029, driven by rapid expansion in cloud-scale artificial intelligence data centers and growing investment in custom silicon aimed at reducing reliance on NVIDIA processors.

The surge in artificial intelligence adoption is accelerating demand for application-specific chips. These custom-designed semiconductors, combined with Marvell’s high-speed interconnect technologies, play a critical role in modern hyperscale data centers by linking thousands of processors used for AI training and inference workloads.

Marvell’s stock has more than doubled year-to-date, reflecting strong investor confidence in its AI-driven growth strategy.

Analyst William Kerwin of Morningstar noted that the company’s custom chip revenue outlook implies an additional $5 billion in incremental revenue between fiscal 2028 and 2029 alone, signaling another strong growth phase heading into 2029.

The company has also raised its broader fiscal 2028 revenue forecast to approximately $16.5 billion, up from a previous estimate of $15 billion.

According to data compiled by the London Stock Exchange Group, Marvell expects second-quarter revenue of $2.7 billion (±5%), slightly above analyst consensus estimates of $2.6 billion. Adjusted earnings per share are projected at $0.93 (±$0.50), also above prior expectations.

Marvell, alongside larger peer Broadcom, plays a key role in helping hyperscale cloud providers design and develop custom chips tailored to specific data center workloads. This segment has become a core growth engine for both companies.

“We have extensive custom engagements with all major U.S. hyperscale data center operators,” said Marvell CEO Matt Murphy.

The company continues to benefit from a sharp increase in capital expenditures among hyperscale operators deploying advanced AI infrastructure. Major technology companies including Alphabet and Amazon are expected to invest more than $700 billion this year in AI infrastructure, a significant jump from about $400 billion in 2025.

Marvell also projects its data center business to grow by approximately 50% this year. In the first fiscal quarter, this segment generated $1.83 billion in revenue, slightly above expectations of $1.81 billion.

For the first quarter overall, revenue increased 28% year-on-year to $2.42 billion, exceeding prior guidance of $2.4 billion. Adjusted earnings per share came in at $0.80, slightly above the expected $0.79, underscoring steady execution across its core business lines.