Reflecting the increase in demand for optical communications and switches… $2 billion higher than previous forecast
Customized semiconductors are also expected to grow... Fiscal 2029 sales target of over $12 billion
Marvell Technology raised its sales forecast for fiscal 2028 to about $20 billion thanks to the growing demand for optical communications and switches for artificial intelligence (AI) data centers. As the importance of connection technology for quickly exchanging large-scale data in AI infrastructure increases, expectations for the growth of the related semiconductor business have also increased.
Marvell raised its 2028 fiscal year sales forecast by $2 billion from the previous $18 billion at an investor event held in New York, USA on the 6th (local time). Matt Murphy, CEO of Marvell, explained that the increase in demand for the optical communications and switch businesses supported this forecast increase.
These products play a role in transmitting data between computing devices, memory, and servers in the data center. As the scale of AI calculations grows, data transmission speed and power efficiency also become more important. Marvell is responding to this demand by supplying optical communication semiconductors, network switches, and memory connection solutions.
As demand for connectivity technology increases, the growth rate of the company's data center business has also accelerated. Marvell forecast data center sales in fiscal 2028 to be approximately $18 billion. It represents about 90% of the total sales forecast, and is expected to reach the scale previously set as the target for fiscal 2029 about a year earlier.
Marvell explained that these business opportunities are also expanding to customized semiconductors designed to meet customer needs. In addition to the customer's AI computing chip, demand for customized design is increasing, including semiconductors responsible for surrounding network, memory, storage, and security functions. Reflecting this, the customized semiconductor sales target for fiscal 2029 was raised from more than $10 billion to more than $12 billion.
Marvell, which has focused on optical communications and customized semiconductors as its mid- to long-term growth axes, also proposed an overall sales target of $70 billion to $90 billion for fiscal 2031. Sales in fiscal 2026 are approximately $8.2 billion, and the company aims to grow sales at an average annual rate of approximately 55-60% by fiscal 2031.
The company explained that its long-term goals were calculated based on existing customers and business plans for each product. To achieve the goal, mass production and supply expansion of products under development must be followed. The sales volume presented this time is the company's forecast assuming the implementation of this business plan.
As the growth outlook increased, stock prices also rose. On this day, Marvell closed trading at $287.01, up 5.81% from the previous trading day.
