Marvell Sees Up to $19 Billion AI Revenue by 2028, Wins 18 Custom XPU Deals

Marvell Technology used its investor day on 18 June to sharply lift its long-term outlook for artificial-intelligence hardware, telling investors it now expects about $18 billion to $19 billion in AI-related data-center revenue in calendar 2028. The company cited a surge in demand for custom accelerators, or XPUs, as cloud providers broaden their use of proprietary silicon. Management said the total addressable market for AI data-center silicon has expanded roughly 60 percent to $94 billion, implying a compound annual growth rate of about 35 percent from 2023 through 2028. Marvell has secured 18 custom XPU and attach design wins—up from three a year ago—positioning it to capture roughly 20 percent of that market, according to the presentation. The updated revenue mix translates to potential earnings power of around $7 to $8 a share by 2028, compared with consensus estimates of about $5. Deutsche Bank and Morgan Stanley echoed the bullish view, with some models pointing to earnings approaching $10 a share if design wins scale as planned. Following the event, Bank of America raised its price target on Marvell stock to $90, arguing the company is poised to narrow the valuation gap with larger AI peers as its custom silicon strategy gains traction.