Marvell Technology Stock Jumps 6% on $90B 2031 Target

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Marvell Technology stock rose about 6% after investor day lifted its fiscal 2028 revenue goal to $20 billion and set a $70-90 billion fiscal 2031 target.

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What Did Marvell Announce at Its Investor Day?

Marvell raised its fiscal 2028 revenue target to $20 billion, up $2 billion from the $18 billion it gave when it reported second-quarter results in late August. The extra $2 billion comes from data center connectivity products, including scale-up optical interconnect and switching. The new figure sits above the prior consensus of about $18.2 billion and well above the roughly $12 billion forecast for the current fiscal 2027.

The fiscal 2031 framework is new. The $70-90 billion range implies a midpoint of $80 billion, with non-GAAP earnings per share above $30. Data center sales are expected to account for nearly $18 billion of the fiscal 2028 total, which makes AI infrastructure the main driver of the plan.

Why Did Marvell Technology Stock Rise?

The stock rose because the targets were well above what the market had priced in, and they came with a specific product breakdown. At the fiscal 2031 midpoint, Marvell projects about $37.5 billion from interconnect, about $30 billion from custom compute, about $10 billion from switching and storage, and about $2.4 billion from communications and other markets.

CEO Matt Murphy argued that hyperscalers increasingly prefer custom accelerators, known as XPUs, over general-purpose hardware. Custom chips can be tuned to a single cloud operator's workloads, which improves performance per watt and cost per unit of AI compute. The case matters for ai stocks more broadly, because it points to a durable second source of demand beside merchant GPUs.

How Much of the Target Comes From Custom AI Chips?

Custom silicon is the largest single growth line after interconnect, at roughly $30 billion of the fiscal 2031 midpoint, or just over a third of total revenue. Marvell also raised its fiscal 2029 custom revenue target to more than $12 billion from more than $10 billion, ahead of the roughly $9 billion some forecasters had modeled.

The company said the custom business is broadening beyond core XPUs into "XPU attach" products. These include network interface cards, memory expansion and near-memory compute, storage, infrastructure management, and inference acceleration. Selling several chips into each hyperscaler design raises content per program and reduces reliance on any single accelerator win.

Strategic Context

The targets show how quickly AI capital spending has changed Marvell's profile. A company long known for networking and storage silicon now expects data center sales to make up nearly nine-tenths of fiscal 2028 revenue. The fiscal 2031 midpoint implies several-fold growth from current levels, and the range itself is wide at $20 billion from low to high. It reflects the uncertainty over hyperscaler budgets, the timing of new custom programs, and competition from Broadcom and in-house design teams at the cloud operators.

Broadcom's 4% gain on the day indicates investors read the update as support for the custom accelerator category as a whole, not just for Marvell.

What Comes Next for Marvell and Custom AI Silicon?

The next checkpoint is Marvell's third-quarter fiscal 2027 report, which will show whether the data center ramp is tracking toward the $20 billion fiscal 2028 figure. Customer announcements will also matter, particularly new XPU attach wins and the first fiscal 2029 custom production volumes. Shares of Marvell have already moved sharply into the event, so execution against the interconnect and custom milestones will drive the next leg.

Outlook

Marvell enters fiscal 2028 with a $20 billion revenue target, a $70-90 billion ambition for fiscal 2031, and a custom silicon business it expects to reach about $30 billion at the midpoint. The market has rewarded the plan with a 6% gain. Quarterly results and hyperscaler spending plans will show how much of the outlook converts into revenue.