Marvell Technology expects its AI infrastructure revenue to surpass 80% of total sales in the near term, up from less than 10% a decade ago, as the company accelerates its pivot toward data center and artificial intelligence markets. The Santa Clara-based chipmaker also projects cumulative data center capital spending will reach more than $12 trillion through 2030, an increase of $1.3 trillion from its previous forecast.
Speaking at the Six Five Summit’s AI Unleashed 2026 event, CEO Matt Murphy emphasized that the company is still in the early stages of AI deployment and ecosystem development. "We are still at the very, very early stages of the deployments," Murphy said. "This era of connectivity is going to unleash a whole new wave of innovation."
Marvell’s AI data center revenue has already exceeded $2 billion per quarter, a figure that underscores the rapid expansion of the segment. The company’s broader data infrastructure business has delivered more than fivefold revenue growth during its strategic shift toward AI and data center solutions. In May 2023, Marvell forecast AI revenue of $200 million for that year and $400 million for 2024, a projection that triggered a 40% single-day stock surge.
The company’s silicon photonics business has shipped millions of units and accumulated 15 billion hours of reliability data over the past decade, while its custom silicon penetration is expected to exceed the prior estimate of 25%. Marvell has secured 15 to 18-plus design wins across the four major hyperscalers, with each accelerator carrying price tags ranging from $500,000 to $2 million.
Cumulative XPU market opportunities are projected near $700 billion through 2030, reflecting the scale of demand for AI and data center infrastructure. Murphy highlighted the company’s recent acquisitions, including Celestial AI and Avera Semiconductor, as key drivers of its growth strategy. NVIDIA’s $2 billion investment in Marvell earlier this year, including IP licensing provisions, further validates the company’s positioning in the AI ecosystem.
Marvell’s stock has surged 224% over the past year, though it closed 5.57% lower at $237.04 on August 25, with after-hours trading at $228.60. The company reports a gross profit margin of 51.5%, a P/E ratio of 83, and a PEG ratio of 0.14, metrics that underscore its premium valuation amid strong growth expectations.
