Updated Version 3 - Driven by strong demand from artificial intelligence data centers, Marvell raises its revenue forecast for 2028
路透社2026/10/06 21:06In the third paragraph, CEO comments were added. Revenue for fiscal year 2031 is expected to reach $70 billion to $90 billion, surpassing market expectations. Custom chip revenue for fiscal year 2029 is projected to reach $12 billion. Executives attribute this optimistic outlook to the booming development of artificial intelligence and a decade of sustained effort. Prathik Jayaprakash/Anhata Rooprai/Max A. Cherney — Reuters, October 6 — Marvell Technology MRVL.O on Tuesday raised its revenue forecast for fiscal year 2028 to about $20 billion, above Wall Street expectations, due to surging demand for custom data center chips and a boom in AI-related spending. The Santa Clara, California-based company's stock rose about 6%, while shares of competitor Broadcom AVGO.O were up about 4%. “It took a very long time to put the company on this path and become a technology leader,” Marvell President and Chief Operating Officer Chris Koopmans said in an interview. “We have always had a track record of delivering on our commitments.” Marvell established a strategy in 2021 focusing on custom and cloud-optimized chips, specifically designed for data centers. Since then, the company has been one of the main beneficiaries of the AI infrastructure boom, and now expects to achieve $12 billion in custom chip revenue in fiscal 2029, up from its previous target of $10 billion. As technology companies develop proprietary AI processors to decrease reliance on Nvidia NVDA.O chips, Marvell’s custom chip business has become a primary growth driver. So far this year, Marvell's stock has surged more than threefold. In August, Marvell disclosed an agreement with Google's Alphabet GOOGL.O which could bring in up to $120 billion in sales through fiscal year 2033, pending certain business milestones. That same month, the company raised its full-year revenue forecast from $16.5 billion to about $18 billion. On Tuesday, Marvell forecast fiscal 2031 revenue between $70 billion and $90 billion. According to a Visible Alpha survey of four analysts, the midpoint of $80 billion exceeds Wall Street's expectation of $46.85 billion. According to London Stock Exchange Group (LSEG) data, analysts previously expected 2028 revenue to be $18.2 billion. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translation may contain errors or lack complete context, Reuters does not guarantee the accuracy of these translations and provides them solely for reader convenience. Reuters accepts no liability for any damages or losses caused by the use of automated translation functionality.)
Added CEO comments in paragraph 3
Prathik Jayaprakash/Anhata Rooprai/Max A. Cherney
Reuters, Oct 6 - Marvell Technology MRVL.O on Tuesday raised its fiscal 2028 revenue forecast to about $20 billion, exceeding Wall Street expectations, driven by growing demand for its custom data center chips and a surge in AI (link) related spending.
The Santa Clara, California-based company's shares rose about 6%, while shares of rival Broadcom AVGO.O climbed about 4%.
"It took us a long time to put the company on this path and become a technology leader," Marvell President and Chief Operating Officer Chris Koopmans said in an interview. "We have always had a record of delivering on our word."
In 2021, Marvell set out a strategy focused on custom and cloud-optimized chips—designed specifically for data centers. Since then, the company has become one of the biggest beneficiaries of the AI infrastructure boom and now expects to achieve $12 billion in custom chip revenue in fiscal 2029, up from its prior target of $10 billion.
As technology firms develop proprietary AI processors to reduce their reliance on Nvidia NVDA.O chips, the company's custom chip business has become a key growth engine. So far this year, Marvell's share price has more than tripled.
In August, Marvell disclosed an agreement with Alphabet's Google GOOGL.O that, if certain performance milestones are met, could deliver as much as $120 billion in sales through fiscal 2033.
During the same month, the company raised its full-year revenue guidance to about $18 billion from $16.5 billion.
On Tuesday, Marvell projected fiscal 2031 revenue in the range of $70 billion to $90 billion. According to a Visible Alpha survey of four analysts, the midpoint of that range—$80 billion—surpasses Wall Street's expected $46.85 billion.
According to data compiled by London Stock Exchange Group (LSEG), analysts previously forecast 2028 revenue at $18.2 billion.
(To facilitate non-English speakers, Reuters provides automated translations of its reports into several other languages. Automated translation may contain errors or fail to include necessary context, so Reuters does not guarantee the accuracy of automated translation text and provides it solely for the convenience of readers. Reuters is not liable for any damage or loss arising from use of the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Russian Bioeconomy Strategic Goal: Exports to exceed $2 billions by 2036, reaching around $3.5 billions by 2050
(1) According to Russia's Bioeconomy Development Strategy up to 2036 and Vision 2050, the country's bioeconomy product exports are expected to reach 2.026 billion USD by 2036 and about 3.509 billion USD by 2050. (2) The document notes that, in the baseline scenario, exports of high-tech bioeconomy products will amount to 2.02642 billion USD by 2036 and 3.50911 billion USD by 2050. (3) By 2036, fixed asset investments in the sector are planned to reach 1.045 trillion rubles, and by 2050, 1.81 trillion rubles. (4) Under the baseline scenario, the share of Russian high-tech products in the consumption structure will reach 74.6% by 2036 and 82.7% by 2050. (5) On October 5, the Russian government approved the National Bioeconomy Development Strategy, with priorities including strengthening technological infrastructure, advanced bioprocessing of biological resources, and expanding the application of biotechnology in traditional industries. (6) According to the explanatory note for the next three-year federal budget draft, approximately 12 billion rubles are planned to be allocated to the national bioeconomy project for 2027-2029.
Thailand plans to reduce biofuel taxes to decrease crude oil imports
(1) The Thai government is considering reducing the excise tax on biofuels to lower prices and boost consumption. On Wednesday, Energy Ministry spokesperson Phongphol Yodmankchalern stated during a press conference that the Energy Ministry and the Ministry of Finance are currently formulating a tax reduction plan. (2) Phongphol noted that biofuels, which are produced by blending gasoline or diesel with biomass fuel, can be produced domestically at a low cost. The excise tax on bio-gasoline and bio-diesel is around 6 baht per liter. (3) Expanding the use of biofuels would help reduce crude oil imports and ease the government's burden of fuel subsidies.
Jefferies lowers the target price of American Express from $350 to $330
Jefferies has lowered the price target for American Express (AXP.US) from $350 to $330.
Temasek CIO warns of two major risks in 2027: reversal of AI boom and inflation
Rohit Sipahimalani, Chief Investment Officer at Temasek International, pointed out that as global markets head into next year, they face two major risks: the possible reversal of the investment boom in artificial intelligence (AI), and inflation driving up bond yields, which could in turn end the upward momentum in the stock market. He stated, "The fading of the AI investment boom is the biggest risk. We don't think it will happen immediately, but some turbulence may occur around 2027." Another major concern is "worries over inflation." He said, "Inflation is a risk, and along with changes in the interest rate environment, this means there could be a point where the stock market hits a certain threshold." He believes that together with the AI issue, these constitute the "two key risks in 2027" that he foresees.
Crypto prices
More
