Marvell increases fiscal 2028 sales forecast to about $20 billion
Its fiscal 2031 revenue projection of $70 billion to $90 billion also exceeded analyst expectations at the midpoint.
Marvell Technology on October 6 lifted its sales outlook for fiscal 2028 to about $20 billion, exceeding the $18.2 billion analyst estimate compiled by LSEG. The increase comes as spending on AI drives demand for the company's custom chips for data centers.
The chipmaker also projected revenue between $70 billion and $90 billion for fiscal 2031. Its $80 billion midpoint was higher than the $46.85 billion forecast from four analysts surveyed by Visible Alpha.
In early trading, Marvell shares climbed about 7% and rival Broadcom gained about 4%. Marvell's share value has risen more than threefold this year.
Custom chips are a major driver of Marvell's growth as technology companies design their own AI processors to become less dependent on Nvidia. In August, Marvell disclosed an agreement with Alphabet's Google with potential sales of up to $120 billion through fiscal 2033, conditional on meeting performance milestones.
Marvell also revised its full-year sales projection in August, lifting it from $16.5 billion to about $18 billion.