Marvell expects its revenue to grow nearly tenfold over the next five years. Its stock price jumped

Marvell Technology’s stock jumped nearly 6% on October 6. The developer of chips and networking solutions presented investors with an ambitious revenue growth plan. The company expects to increase revenue by 8 to 11 times over the next five years amid high demand for artificial intelligence infrastructure, according to Barron's.

The company’s CEO, Matt Murphy, presented an updated forecast for the company’s financial performance at Investor Day in New York. He announced that the chipmaker forecasts revenue in fiscal year 2031 to range from $70 billion to $90 billion, compared with $8.2 billion in fiscal year 2026, which ended in January. Thus, average annual revenue growth over the next five years could be around 55–60%, according to Barron’s. Moreover, if the midpoint of the forecast is realized in 2031—$30 billion in revenue will come from Marvell’s custom chip division, and another $37.5 billion would come from the interconnect segment—networking solutions for data transmission both within and between data centers. Overall, based on estimates from four analysts surveyed by Visible Alpha, the upper limit of Marvell’s new forecast exceeds the Wall Street consensus by 92%, according to Reuters data.

In addition, the company reported that it forecasts adjusted earnings per share to exceed $30 in 2031, compared to $2.84 in fiscal year 2026. In the long term, Marvell is targeting a gross margin of 56–59%, which is slightly lower than the figure for fiscal year 2026 (59.5%).

In the shorter term, the company raised its revenue forecast for fiscal year 2028 from $18 billion to $20 billion, which also exceeded analysts' expectations by 9.9%, according to a Reuters report.

Demand for the company's specialized chips for data centers is growing alongside a sharp increase in large companies' spending on artificial intelligence, Reuters notes. This business remains one of Marvell's main growth drivers, the agency points out.

“It took us a long time to steer the company in this direction and make it a technology leader,” said Chris Kupmans, president and chief operating officer of Marvell. “We have proven time and again that we deliver on our promises.”

For Marvell to meet its forecast, hyperscalers will have to carry out their plans to invest trillions of dollars in data centers, Barron's notes. These investments are beyond Marvell’s control, but its established relationships with hyperscalers give Kupmans confidence that the company itself will handle its part of the task: “Often, when a company issues a forecast, it’s based on the hope that it will win a bunch of contracts,” said Kupmans. “I feel much more at ease when all we have to do is execute on existing relationships and deals we’ve already won,” he added.

In August, Marvell signed an agreement under which the company will assist Google in developing specialized AI chips. This contract could generate up to $120 billion in revenue for the chipmaker by fiscal year 2033, according to Bloomberg. In addition, Marvell is collaborating with AWS in the area of data center infrastructure. In March 2026, the chipmaker announced a strategic partnership with Nvidia. Marvell is also developing the Trainium AI chip in collaboration with Amazon.

“A few years ago, we were concerned that [Marvell’s] business was too heavily dependent on a single customer [Amazon],” Barron’s quotes Seaport Research analyst Jay Goldberg as saying. However, the company now has a much broader customer base, the analyst added.

Amid upward revisions to forecasts, Marvell Technology shares rose as much as 11% on October 6, but gave up some of those gains by the close, ending the session up 5.8%. Since the beginning of the year, the company’s shares have risen 236%. They are currently trading at a P/E ratio of about 50 based on projected earnings for the next 12 months—meaning investors are paying about $50 for every $1 of expected earnings, notes Barron’s. Investors are beginning to recognize the value of Marvell’s business following a challenging 2025, when the stock fell 23% despite strong financial results, Kupmans noted at the Investor Day.

In 2021, Marvell unveiled a strategy centered on developing specialized chips optimized for cloud computing and designed for use in data centers. Since then, the company has become one of the biggest beneficiaries of the artificial intelligence infrastructure boom, Reuters notes.

Wall Street's average price target for Marvell shares is $298.3, which implies a 3.9% increase from the closing price on October 6. Of the 48 analysts tracking the company's stock, according to MarketWatch, 42 recommend buying Marvell shares, while another six advise holding them.

This article was AI-translated and verified by a human editor