Marvell Lifts Its 2028 Sales Target on AI Data-Center Demand
Marvell Technology raised its 2028 revenue forecast on October 6, 2026, at its Investor Day in New York City. Chairman and CEO Matt Murphy delivered the update to investors at the event, according to Reuters.
Marvell had billed the Investor Day in advance as a livestreamed session starting at 9 AM ET from New York. The stated agenda was company strategy, growth opportunities, and Marvell's role in next-generation AI and data center infrastructure, according to the company's investor relations site.
The new target followed a second quarter with net revenue of $2.739 billion, a new record and up 37% from a year earlier. The result was disclosed on August 27, 2026, in the company's second-quarter financial results, according to Marvell.
Gross margin (the share of sales left after direct production costs) was 53.1% under GAAP, the standard accounting rules, and 58.9% on a non-GAAP basis, which strips out items like stock compensation and amortization. Non-GAAP earnings were $0.94 per share for the fiscal second quarter, as reported in the earnings-call transcript. That transcript also noted Marvell beat Wall Street expectations for earnings and revenue.
For the full fiscal 2026, Marvell reported net revenue of $8.195 billion, also a new record. GAAP net income was $2.670 billion, or $3.07 per diluted share, as reported on March 5, 2026.
Despite the beat, the market reaction to the August quarter was negative. Marvell shares fell more than 8% to $221.6 in early trading on August 28, 2026, according to Reuters.
The broader context here is the gap between one quarter and a two-year build plan. A 2028 revenue target is not a quarterly guide. It reflects contracted and expected custom chip programs, networking product ramps, and visibility into data-center capital spending over two full fiscal cycles. Investors price those cycles on timing as much as on size.
In my view, three variables will shape how to read the update. First is mix. The gap between GAAP and non-GAAP margin means stock pay, amortization and other adjustments can move reported profit even if sales keep growing. Second is concentration. Long-running AI infrastructure orders can grow fast, but timing of individual programs can shift quarter to quarter. The August selloff showed that sensitivity, when a beat plus questions about timing still pushed shares lower. Third is horizon. Two-year targets in chips carry wide uncertainty, especially when AI budgets, power limits and shifts in connection technology interact. The test will be conversion from design wins to volume to cash flow, and whether that cash covers the cost of supporting it.
