Marvell Technology (MRVL -12.65%) is becoming one of the biggest beneficiaries of the AI infrastructure boom, thanks to growing demand for its data center products. If the company delivers on its ambitious growth targets, the stock has plenty of room to run higher through 2030.
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But before you consider adding it to your portfolio, it’s important to understand what’s driving that growth today.
Custom chips are making Marvell a bigger AI spending winner
One of Marvell’s growth engines is its custom silicon business. That’s because tech companies are increasingly shifting toward using AI data center processors designed specifically for their workloads rather than pricier GPUs with greater flexibility.
Developing these application-specific integrated circuits (ASICs) requires strong engineering capabilities, intellectual property, and close collaboration with customers. Marvell has spent years building those capabilities, positioning itself to benefit as hyperscalers deploy more custom AI hardware.
The company’s latest earnings show the opportunity is already driving significant growth. In the second quarter of its fiscal 2027, Marvell generated a record $2.7 billion in revenue, up 37% year over year. Its data center business grew 46%, driven by strong demand for AI-related products spanning connectivity, custom chips, and storage.
Marvell is already shipping custom silicon to the four largest U.S. hyperscalers, and these relationships create more opportunities for future design wins. Still, the biggest risk is that delays, cancellations, or changes in customer spending could significantly affect revenue growth. Competition from other semiconductor companies and from customers developing more of their own chips could also pressure margins.
Regardless, in conjunction with the earnings report, management raised its revenue outlooks for fiscal 2027 and fiscal 2028, citing exceptionally strong AI bookings and accelerating demand across its data center portfolio. The company expects around $12 billion in revenue for fiscal 2027 and $20 billion for fiscal 2028. Those are huge jumps from the $8.2 billion in revenue it generated in 2026.
But Marvell isn’t relying on a single product line to drive those gains.
A broader product lineup gives Marvell more ways to win
Marvell’s expanding portfolio gives it several ways to benefit as cloud providers build more complex AI infrastructure. That breadth matters because the AI build-out cycle is creating opportunities in areas well beyond chips.
The company’s “XPU attach” products are particularly interesting. As AI systems become more advanced, they require more components for networking, memory, storage, and security. Marvell can supply these components in addition to the customer’s primary chips.
Management also identified interconnect technology as one of its more promising growth opportunities. That’s because as AI systems become ever more complex, they need more powerful and higher-bandwidth technology to move data efficiently between chips and servers.
Management’s long-term plan targets $37.5 billion in interconnect revenue alone, at the midpoint, in its fiscal 2031.
On top of that, Marvell has been investing in technologies designed to support optical connections. Its acquisition of Celestial AI, completed in February, expanded its capabilities in photonic interconnect technology for next-generation AI data centers.
With that, management estimates the company’s total addressable market will reach around $400 billion by 2030. Its opportunities span custom silicon, interconnect, and storage, allowing Marvell to benefit from several layers of the AI boom.
Marvell has a compelling growth story which raises a big question: What might the stock actually be worth by 2030?
Three earnings scenarios show where Marvell stock could land by 2030
Marvell’s custom chips and high-speed networking products give it multiple avenues for growth, and Wall Street is bullish. Among 39 analysts covering the stock, 30 rate it a strong buy, three call it a buy, and six rate it a hold. Their average 12-month price target on the stock is $337, and the highest target price is $450.
That said, a single target doesn’t tell the whole story. In a recent investor day presentation, management laid out a long-term target of more than $31 in annual earnings per share (EPS).
MRVL Marvell Technology
$219.81-$31.84 (-12.65%)
NASDAQ · As of 9:37 AM ET 10/29/26
Here’s how that could play out: In a pessimistic case, custom chip programs could slip, and the company’s EPS could dip to roughly $13. If the stock traded at 18 times earnings, it would be worth about $234, which is about where it trades today.
Meanwhile, a base case assumes that Marvell will deliver about two-thirds of management’s target, or $20 in EPS. Trading at 22 times earnings, shares would be worth around $440, roughly 88% higher than today’s price.
On the optimistic end, we can imagine Marvell hitting the $30 EPS target and the market paying 26 times earnings for the stock, which would price it near $780.
In sum, custom-chip ramp-ups and margins will likely determine what Marvell is worth by 2030, but which outcome we get will depend heavily on execution, too. Shares have swung between about $71 and $330 over the past year, so investors should be prepared for a bumpy ride.
