Marvell Technology, Inc. provides data infrastructure semiconductor solutions spanning the data center core to the network edge. It develops system-on-a-chip architectures that integrate analog, mixed-signal, and digital signal processing. Its portfolio includes Ethernet solutions, custom application-specific integrated circuits, interconnect products, fibre channel products, storage controllers, and host system interfaces. The company serves data centers, communications, and other markets through direct customers and distributors. It was incorporated in 1995 and is headquartered in Wilmington, Delaware.
Amphenol AI Datacom Sales Surge 89% as CommScope Adds $1.2 Billion
Amphenol's IT datacom business, which represented 43% of the company's total sales in the second quarter of 2026, saw revenues surge 89% year over year and 63% organically, with management saying the AI revenue run rate has reached roughly $10.5-$11 billion. Management noted that virtually all of the 22% sequential IT datacom growth in the quarter came from AI-related products, as customers require more copper, optics and power for larger, more complex AI clusters. The company's acquisition of CommScope contributed more than $1.2 billion in sales in the quarter, with CommScope's IT datacom business nearly doubling year over year; management expects that market to account for just under half of CommScope's 2026 sales, compared with roughly one-third in 2025. Amphenol faces tough competition from TE Connectivity, whose Digital Data Networks sales rose 34% year over year in the third quarter of fiscal 2026 with bookings up more than 70% year to date, and from Marvell Technology, whose data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. Amphenol shares have risen 16% year to date, trailing the broader Zacks Computer and Technology sector's 17% gain, and trade at a forward 12-month price/earnings of 25.32X versus the sector's 20.38X, while the Zacks Consensus Estimate for earnings stands at 72 cents per share, up 5 cents over the past 30 days and implying 53.19% growth.
GlobalFoundries Expands SiGe Capacity in Multi-Year Marvell Deal
GlobalFoundries has signed a new multi-year agreement with Marvell Technology to increase production capacity for its silicon germanium technology. Under the deal, GlobalFoundries will expand SiGe production at its Burlington, Vermont facility to support Marvell's growing requirements, with the added capacity aimed at next-generation pluggable optical transceivers, Near-Packaged Optics and Co-packaged Optics. The collaboration is expected to serve rising demand for high-speed optical connectivity driven by artificial intelligence and cloud data center infrastructure. GlobalFoundries' existing solutions support 200G-per-lane optical connectivity, while its development roadmap targets higher-speed generations as bandwidth requirements rise. The company faces competition from United Microelectronics, which has begun mass production of photonic IC wafers, and Taiwan Semiconductor, which is strengthening its CoWoS packaging and silicon photonics capabilities.
Marvell Deepens AI Infrastructure Push With GlobalFoundries, Microsoft, Utimaco Deals
Marvell Technology announced new collaborations with GlobalFoundries, Microsoft and Utimaco focused on advanced connectivity and payment security. The GlobalFoundries partnership targets expanded production of advanced SiGe chips used in next generation optical links for AI data centers, giving Marvell more assured capacity for SiGe chips used in pluggable optics, NPO and CPO and tightening a manufacturing relationship that already spans more than a decade. Marvell is also working with Microsoft and Utimaco to provide a cloud native payment security platform delivered through Microsoft Azure, combining LiquidSecurity hardware with Utimaco software to shift part of its security hardware footprint into a cloud delivered, usage based service. The first checkpoint for that effort is the Azure Payment HSM v2 public preview, which begins on 17 September 2026 in Western U.S. and Western Europe. Investors can then watch for disclosed customer adoption metrics, expansion of availability regions, and Marvell's capacity plans for higher speed SiGe optical products beyond the current 200G per lane benchmark.
Microsoft Launches Azure Payment HSM v2 for Banks as Shares Rise 1.6%
Microsoft pushed another high-security financial workload deeper into Azure Thursday with a managed payment-security service built for banks and payment processors, sending the shares up approximately 1.6% to $498.17. The offering, Azure Payment HSM v2, combines Marvell's LiquidSecurity hardware with Utimaco's Atalla payment module, giving financial institutions a cloud-based way to protect payment keys, encryption and transaction security without giving up the controls demanded by regulated environments. The public preview is available in West US and Western Europe, and Microsoft did not disclose pricing, customer contracts or expected revenue, so the near-term financial impact remains difficult to quantify. The bigger story is where Microsoft keeps pushing Azure: Microsoft Cloud generated $59.3 billion, or roughly 65.9% of the company's latest quarterly revenue, and payment security opens another sticky workload where compliance requirements can make switching painful. The preview alone will not move Microsoft's financial needle, but successful production adoption could deepen Azure's grip on highly regulated customers and create another layer of recurring cloud spending.
Marvell Data Center Revenue Hits Record $2.17 Billion, 79% of Total
Marvell Technology's data center business reached a record $2.17 billion in the second quarter of fiscal 2027, up 46% year over year and 18% sequentially, and accounted for 79% of total company revenues. The data center end market made up 74% of Marvell's fiscal 2026 revenues, and the company expects data center revenues to grow approximately 60% in fiscal 2027. Marvell reported strong demand for 800G optical DSPs while its 1.6T products ramp rapidly, and scale-out switching is expected to more than double in fiscal 2027 on broader adoption of its 51.2T switch products. The company expects its custom business to accelerate in the second half of fiscal 2027 and more than double year over year in fiscal 2028, driven by XPU and XPU-attach solutions, with an expanded hyperscaler agreement covering AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute. Marvell also expanded its position in next-generation AI infrastructure through its relationship with NVIDIA, including NVLink Fusion, scale-up switching and silicon photonics, and introduced products such as the 102.4 Tbps Teralynx T100 switch. Marvell shares have gained 170.3% year to date, and the Zacks Consensus Estimate for fiscal 2027 earnings suggests year-over-year growth of 48%.
Bank of America Forecasts Semiconductor Market Nearly Doubling to $3.2 Trillion by 2030
Bank of America forecasts the global semiconductor market will nearly double to $3.2 trillion by 2030 from $1.7 trillion in 2026, citing AI infrastructure, memory and data-center demand that remains far stronger than recent fears suggest. Analysts led by Vivek Arya wrote that despite rising concerns about a potential AI infrastructure and investment slowdown, they see no signs of slowing in customer orders, long-term agreements, capacity commitments or semiconductor pricing. The bank pointed to Nvidia B200 rental pricing at $5.72 per hour, up consistently over the past two months and less than 10% below its March peak of roughly $6.10, while AMD has also indicated it is not seeing weakening customer orders. Within the total, memory is expected to remain the biggest growth engine, with sales rising to $1.8 trillion by 2030 from $937 billion in 2026, core semiconductors projected to increase to $1.35 trillion from $739 billion, server-related sales jumping to $848 billion from $359 billion, and wafer-fabrication-equipment spending more than doubling to $359.8 billion from $155.9 billion. BofA sees Nvidia and AMD as resilient compute plays, Marvell in networking, and Analog Devices and onsemi in analog, while Micron, Lam Research, Applied Materials and Intel could also outperform if sector momentum improves; the key risk is whether hyperscalers eventually slow AI capital spending.
Broadcom, Micron and Marvell Raise AI Guidance as Demand Accelerates
Broadcom, Micron Technology and Marvell Technology all raised forward guidance in their latest earnings reports, citing accelerating AI infrastructure demand. Broadcom reported fiscal Q3 2026 revenue of $29.59 billion, up 85.5% year over year, with AI semiconductor revenue of $16.7 billion, up 221% year on year, and guided Q4 AI semiconductor revenue to $21.7 billion, up 236% year over year, outlining a trajectory reaching approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Micron posted fiscal Q3 2026 revenue of $41.46 billion, up 345.7% year over year, and guided fiscal Q4 revenue to $50.0 billion plus or minus $1.0 billion at gross margin near 86%, with full-year fiscal 2026 capital spending of approximately $27 billion. Marvell reported Q2 FY2027 revenue of $2.739 billion, up 36.5% year over year, and raised its fiscal 2027 data-center growth outlook to approximately 60% from approximately 50% previously, with CEO Matt Murphy flagging the October 6, 2026 Investor Day as the next catalyst. Micron's fiscal Q4 report, expected late this month, is the next test of whether hyperscaler capital spending holds through year-end.
Marvell Shares Fall 8% as Anthropic CEO Urges Slower AI Development
Marvell Technology shares dropped about 8% in premarket trade Monday after Anthropic CEO Dario Amodei said advanced artificial intelligence systems should be developed more slowly. The selloff hit Marvell because many of the semiconductor company's development opportunities are tied to the infrastructure being built around artificial intelligence, and a slower development cycle could mean less need for networking, memory and connectivity devices in AI data centers. Marvell will showcase its AI data-center connectivity and memory portfolio at the AI Infra Summit in Santa Clara from September 15 to 17, giving investors a near-term look at how aggressively it is positioning itself for further infrastructure spending. Wall Street remains broadly upbeat, with TipRanks reporting 22 Buy recommendations and five Holds and an average price target of $298.38. Investors are putting increasing weight on this week's conference, as Marvell needs to show that demand for AI infrastructure is still strong enough to withstand a wider debate over how fast the industry should move.
Marvell Falls 7% as AI Pacing Debate Meets Fed Week; Broadcom Down 4%, NVIDIA Off 3%
Marvell Technology shares fell 7% to $220.04 midday Monday, leading a semiconductor-specific selloff as a fresh debate over the pace of AI infrastructure spending collided with a Federal Reserve policy week. Broadcom dropped 4% to $346.03 and NVIDIA retreated 3% to $211.87, while the iShares Semiconductor ETF fell 5% against a decline of just 0.3% for the Invesco QQQ Trust, confirming the damage was concentrated in chips rather than broad technology. The pressure came from two directions: over the weekend senior figures at leading AI labs publicly called for slowing the pace of capability gains, undercutting the uninterrupted buildout assumption that custom silicon names are priced against, and the Federal Open Market Committee meets Tuesday and Wednesday with a rate increase widely expected, which compresses the present value of distant cash flows. Marvell carries a 159% year-to-date gain into the pullback and a rich forward multiple, making it the most sensitive of the three to shifts in AI capital spending sentiment, while Broadcom has been sliding for weeks with a 17% decline over the past month. Today's move traces to macro positioning rather than any company-specific announcement, as Marvell last reported quarterly results in late August.
Fed Expected to Hike Rates as AI Fears and Iran War Rattle Markets
Pre-market futures fell Monday as AI concerns and the ongoing war in Iran weighed on sentiment, with the Dow down 184 points, the Nasdaq down 469 and the S&P 500 down 48 points. A former OpenAI and Anthropic employee warned of dangers to humanity from unregulated AI, sending Marvell Technologies and AMD down more than 6% in early trading while software makers CrowdStrike and ServiceNow rose. Oil prices climbed 4% to $104 per barrel on WTI and $109 per barrel on Brent crude, with $120 oil now seen as a real near-term possibility. The 10-year bond yield reached 4.983%, its highest since briefly touching 5% three years ago, while the 2-year stood at 4.647%. The Federal Open Market Committee meets Tuesday and Wednesday, with odds of a 25 basis point hike to 3.75-4.00% now around 80% following last week's Consumer Price Index, though Fed Chair Kevin Warsh faces pressure from President Trump to hold rates steady.
Nvidia and chip stocks slide as AI leaders call for development slowdown
Nvidia stock fell 2% in premarket trading Monday as AI safety concerns rattled global tech markets, with Broadcom, Intel, and Marvell Technology dropping 3%, 5%, and 7% respectively after leaders of major artificial intelligence companies over the weekend called for a slowdown in AI development. Anthropic CEO Dario Amodei published an essay Saturday contending that AI companies must pull back on advancing their most powerful models, citing the safety dangers such systems pose, and told CBS News on Sunday that the thorniest obstacle to such a proposal is uncertainty over whether China would participate. OpenAI CEO Sam Altman said in a Saturday interview that an IPO this year would be "ill-advised," adding to uncertainty around the AI sector's near-term trajectory. Nasdaq-100 futures were down 1.5% ahead of the open, with S&P 500 futures off 0.6% and Dow Jones Industrial Average futures shedding 114 points, or 0.2%, while South Korea's Kospi retreated 3.26%, Tokyo's Nikkei 225 finished down 0.81%, and Europe's pan-European Stoxx 600 index was down about 0.3%. Markets are also contending with rising oil prices, as WTI crude futures climbed 3% to trade above $103 a barrel and Brent futures rose past $108 following Saudi Arabia's decision to shut a pipeline that had been a critical conduit for crude exports through the Strait of Hormuz region, a closure that followed drone strikes by Iran-aligned militants in Iraq. The Federal Reserve opens its September policy meeting this week, with fed funds futures markets assigning about an 86% chance to a rate increase.
AI Stocks Slide Premarket as Executives Urge Slower Development
U.S. stock index futures fell sharply on Monday, with technology shares under pressure after several leading artificial intelligence executives called for a slower pace of AI development. By 05:52 ET, Dow futures had fallen 150 points, or 0.3%, S&P 500 futures had dropped 63 points, or 0.8%, and Nasdaq 100 futures had slumped 531 points, or 1.8%. Rumble shares surged as much as 28% in premarket trading after reports that Anthropic had agreed to a $13.7 billion computing contract with the company, a deal Rumble had disclosed in an August securities filing without identifying the customer. Anthropic CEO Dario Amodei called on AI companies to slow the advancement of model capabilities in an essay posted on X on Saturday, warning that increasingly capable AI agents could create significant economic damage if misused, and OpenAI CEO Sam Altman and xAI chief Elon Musk said they agree with his concerns. Nvidia fell more than 2% in premarket trading, while Meta and Amazon each dropped more than 1%, and chipmakers Intel, AMD and Marvell Technology fell nearly 6%, 5% and 6%, respectively, even as software names ServiceNow, Adobe and Workday rose about 3%, 2.5% and 2.5%. Scholar Rock shares surged 9.1% to $60.45 after the FDA approved ISEMBYLD, also known as apitegromab-mstn, as the first and only muscle-targeted treatment for spinal muscular atrophy in patients aged two and older receiving an SMN2-targeted therapy, ahead of the September 30, 2026 PDUFA deadline. Elmet Group shares jumped 30.8% after announcing a $450 million committed investment from the U.S. Department of War to accelerate domestic tungsten manufacturing, while Olema Pharmaceuticals slid 15.1% to $8.68 after AstraZeneca said its Phase 3 SERENA-4 trial of camizestrant failed to show a statistically significant improvement in progression-free survival, and MARA Holdings fell 5.7% to $11.30 after JPMorgan double-downgraded the bitcoin miner to Underweight from Neutral and cut its price target to $11 from $13.
Bank of America Keeps Buy Rating and $365 Target on Marvell Stock
Bank of America has maintained its Buy rating and $365 price target on Marvell Technology, implying nearly 55% upside from Marvell's September 11 closing price near $236.10. Analysts led by Vivek Arya, following a management lunch with CEO Matt Murphy and CFO Dan Durn, base their conviction on Marvell's supporting-chip business, which is already shipping to the four major U.S. hyperscalers, with each custom processor requiring one or two supporting chips priced at $500 to $1,500. BofA estimates this supporting-chip market alone might exceed $60 billion to $65 billion by 2030, and at a projected 40% to 50% share, Marvell's annual sales opportunity could potentially rise to $30 billion, compared to management's $3 billion to $4 billion-plus outlook for 2028. Adding $15 billion in potential custom-processor sales by 2030 brings the combined modeled opportunity to $40 billion to $45 billion, though these are modeled opportunities rather than booked orders. Arya sees calendar-2028 earnings power near $14 a share versus an $11 baseline, with each additional $1 billion in sales adding 30 to 35 cents, and his target uses 33 times baseline earnings excluding stock compensation, ahead of the October 6 analyst day.
Marvell Beats and Raises, Yet Stock Falls Over 10% on Google Chip Timing
Marvell Technology delivered a fiscal second-quarter beat and raised its revenue outlook, but the stock plunged more than 10% the next day, prompting Jim Cramer to ask on his September 8 Mad Money episode why investors punished a company whose AI business keeps accelerating. Marvell reported revenue of $2.739 billion, up 37% year over year, and non-GAAP diluted earnings of $0.94 per share, while raising its revenue outlook for both fiscal 2027 and fiscal 2028; CEO Matt Murphy said AI-related bookings remained exceptionally robust and cited broad-based strength across the data center portfolio, including strong Connectivity demand and a significant acceleration in its Custom business beginning in the second half of fiscal 2027. Part of the selloff stemmed from extremely high expectations after the stock's run, and part from new color on Marvell's expanded Google collaboration, under which the company disclosed a performance-based warrant tied to 240 revenue milestones of $500 million each, based on discretionary purchases by Google and its affiliates through fiscal 2033, with full vesting of the performance-based portion requiring $120 billion in cumulative Custom Products revenue. Management said programs tied to the expanded Google opportunity should contribute much more significantly in fiscal 2029, even though some related revenue is already in the nearer-term outlook. The main risk is the pace at which the Custom business ramps, given reliance on a limited number of customers and the need to hit design wins and deployment schedules, and Insider Monkey counted 96 hedge funds holding MRVL at the end of the second quarter, up from 79 in the first, with short interest at approximately 3.2% to 3.8% of float. Marvell's October 6 Investor Day is expected to provide further detail on the Custom business and long-term AI strategy.
Piper Sandler Starts Marvell at Buy, Sees $18 Billion Google AI Opportunity
Piper Sandler initiated coverage of Marvell Technology with a Buy rating and a $270 price target, citing the chipmaker's expanding role in AI data centers and custom computing. Analyst David O'Connor said Marvell holds roughly a 10% share of the data-center components market, with established positions in digital signal processors and custom connectivity, and that its relationships with large cloud providers should support future demand for custom AI hardware and co-packaged optics. A major part of the thesis is Marvell's agreement with Google, with O'Connor expecting Google's TPU programs to begin contributing in fiscal 2029 and estimating the opportunity could generate about $18 billion in annual revenue once fully ramped. He also pointed to Marvell's work with Amazon and Microsoft on accelerator programs, saying the larger opportunity may be Marvell supplying custom XPU solutions to hyperscalers as they develop their own AI chips. The analyst expects Marvell's Oct. 6 analyst day to provide more detail on its long-term plans, and projects revenue reaching $45 billion by 2030 with EPS potentially rising to $19.
Marvell Lifts Two-Year Revenue Outlook to $30 Billion on AI Data Center Demand
Marvell Technology Chairman and CEO Matt Murphy said the company now expects about $12 billion in revenue this year and $18 billion next year, lifting its combined two-year revenue outlook to $30 billion from $23.5 billion. Speaking with CNBC's Jim Cramer, Murphy said the growth outlook has improved significantly since December, when Marvell expected about $10 billion in revenue this year and $13.5 billion in 2027. Data centers are driving the acceleration: Marvell generated roughly $2 billion in data center revenue in 2023, and Murphy now expects more than $15 billion of the projected $18 billion in revenue next year to come from data centers. Murphy also highlighted Marvell's partnership with NVIDIA and a recent warrant agreement with Alphabet unit Google under which Marvell could issue warrants representing about 6.5% of the company if cumulative revenue reaches $120 billion, and he described Marvell as the Switzerland of the market because it works with all four major U.S. hyperscalers on custom silicon. Marvell plans to present investors with a new four- to five-year roadmap at its investor day on Oct. 6.
Marvell Technology Shares Rise 4.3% on AI Data Center Portfolio Preview
Marvell Technology shares jumped 4.3% in the afternoon session after the networking chips designer announced plans to showcase its end-to-end AI data center connectivity and memory solutions portfolio at the upcoming AI Infra Summit 2026 in Santa Clara, California. According to a company press release, the presentation will highlight next-generation switching technology, advanced telemetry capabilities, optical interconnects, and CXL-based memory solutions, which Marvell says aim to optimize system utilization, token efficiency, bandwidth, and overall return on investment for artificial intelligence infrastructure. After the initial pop, the shares cooled down to $234.45, up 4.1% from the previous close. Marvell Technology is up 162% since the beginning of the year, but at $234.45 per share it is still trading 25.9% below its 52-week high of $316.43 from June 2026.
Qualcomm's Amazon AWS Deal Gives Stalled Stock a Hyperscaler Anchor
Qualcomm unveiled a multi-generational product collaboration with Amazon to build next-generation AI data center infrastructure, and Jim Cramer said the news gives the stalled stock "something special" to point at. Shares of Qualcomm closed at $174.09, up 3.17% on the day, and Amazon is receiving warrants to acquire roughly $4 billion of Qualcomm stock as part of the deal. Qualcomm is designing custom silicon for Amazon Web Services to run inside AWS AI data centers, with revenue starting in the December quarter. Qualcomm's guidance puts data center revenue at $5 billion in fiscal 2027 and $15 billion in fiscal 2029, part of a broader plan for total non-handset revenues to reach $40 billion by fiscal 2029. The deal gives Qualcomm a named hyperscaler anchor, contrasting with Marvell Technology, whose shares surged 242.26% over the past year on similar custom silicon momentum, and Broadcom, which pursues a similar model with different hyperscalers.
Qualcomm-AWS Deal and Chip Milestones Boost Semiconductor Stocks
Shares of Applied Materials, AMD, Broadcom, Lam Research, and Marvell Technology surged in afternoon trading after Qualcomm announced a multi-generational collaboration with Amazon Web Services to develop custom AI data center chips, and ASML, TSMC, and Intel revealed key advancements in next-generation chip manufacturing. Qualcomm's partnership with AWS focuses on co-designing custom AI chips for high-performance inference and data center workloads, aiming to cut operating costs and improve energy efficiency. At the SPIE Photomask conference, ASML and TSMC launched an initiative to transition from 6-inch to 12-inch photomasks, targeting a pilot line by 2031 and full production by 2033, which would reduce costs and boost output for advanced AI processors. Additionally, Intel Foundry and ASML confirmed that Intel has processed over one million wafers on its Intel 18A node using High NA EUV equipment. These developments boosted investor confidence in sub-2-nanometer chip designs and AI infrastructure, with Applied Materials up 3.4%, AMD up 6.5%, Broadcom up 3.3%, Lam Research up 4.2%, and Marvell Technology up 3.3%.
Citi expects semiconductor rebound after 18% summer selloff
Citi told clients in a note Tuesday that it expects semiconductor stocks to rebound after a summer slump, arguing that a heavy conference schedule and resilient data center demand should support the sector. The bank noted the Philadelphia Semiconductor Index fell 18% over the summer as the group ran into high expectations and a modest deceleration in earnings momentum. Even so, Citi looks for a recovery heading into its Global TMT conference, where it expects positive commentary led by AMD, MRVL, LITE, ALAB, and semi caps. Data center demand remains strong, accounting for 34% of the industry's total addressable market, while autos and industrials, at 21%, continue to recover. Demand from PCs and handsets, which make up 42% of the market, is said to remain weak amid memory cost inflation and supply constraints. The bank turned more bullish on central processing units after recent earnings and the Hot Chips conference, lifting its CPU market forecast to $237 billion by 2030 from $29 billion in 2025, a 52% compound annual growth rate, above forecasts from AMD, Arm and Nvidia. Citi expects AMD to be the key beneficiary of what it called a "CPU renaissance," with Intel a secondary winner. Furthermore, Citi raised its outlook for wafer fabrication equipment spending, citing a stronger hyperscaler capital expenditure model, now seeing a 2028 bull case approaching $300 billion, with base-case spending of $257 billion, up from $250 billion previously.
Broadcom Raises AI Revenue Forecast to $115 Billion by 2027
Broadcom Inc. raised its AI chip revenue forecast to about $115 billion for fiscal 2027, up from a prior estimate of over $100 billion, and expects that figure to double to roughly $230 billion in fiscal 2028. The company's outlook reflects hyperscalers' growing demand for custom AI accelerators and networking components, which complement rather than replace Nvidia GPUs. KeyBanc analyst John Vinh reiterated an Overweight rating and $575 price target on Broadcom, citing strong demand from customers like OpenAI, Meta, Google, and Anthropic. However, competition is intensifying, as Google expanded its deal with Marvell, potentially affecting Broadcom's share in TPU programs. Broadcom's fiscal third-quarter revenue rose 86% year-over-year to about $29.6 billion, beating expectations, but its fourth-quarter guidance of roughly $34.8 billion fell just short of the $35 billion consensus.
Broadcom Inc. reported Q3 2026 revenue of $29.6 billion, up 86% year-over-year, with AI semiconductor revenue soaring 221% to $16.7 billion, and the company expects AI semiconductor revenue to reach $21.7 billion in Q4 2026, a 236% increase. Total Q4 revenue is projected at approximately $34.8 billion, up 93%. The company generated $13.7 billion in free cash flow in Q3, representing 46% of revenue, providing ample financial flexibility. Management anticipates AI semiconductor revenue of about $115 billion in FY 2027 and $230 billion in FY 2028, indicating a multiyear growth cycle. William Blair analyst Sebastien Naji reiterated a Buy rating, citing Broadcom's durable edge in custom AI silicon and networking, supported by a robust XPU customer roadmap. Risks include higher expectations, competition from Marvell, Nvidia, AMD, and hyperscalers' internal chips, as well as potential AI spending slowdowns.
Marvell Technology Inc. reported record second-quarter revenue of $2.74 billion, up 37% year over year, driven by a 46% surge in data-center sales to $2.17 billion, which now account for about 80% of total revenue. Management forecasts third-quarter revenue of approximately $3.15 billion as demand for custom AI chips, optical products, and networking equipment continues to grow. The company is positioning for the industry shift from copper to optical interconnects, having acquired Celestial AI to gain its Photonic Fabric technology. Marvell expects its photonics business to reach a $500 million annualized revenue run rate by the end of fiscal 2028 and $1 billion the following year. The next catalyst is its investor day on October 6.
Nvidia Leads AI Silicon Race as Chipmakers Post Record Growth
Nvidia is no longer just a chip company but the infrastructure platform for all of AI, with revenue per gigawatt of AI infrastructure rising from $18 billion with Hopper to $40 billion with Vera Rubin. In its latest earnings, Nvidia reported Q2 FY2027 revenue of $96.221 billion, up 105.85% year over year, and guided Q3 to $108.0 billion. Broadcom's AI semiconductor revenue surged 221% to $16.70 billion in Q3 FY2026, with a fiscal 2028 AI outlook of $230 billion. Marvell's custom silicon business will more than double in fiscal 2028, and Intel posted its strongest revenue growth in over fifteen years. All five chipmakers are supply-constrained heading into 2027, with Nvidia disclosing partnerships to mobilize over $500 billion in third-party capital for AI infrastructure.
Nvidia's $12.9B Hugging Face Deal Hedges Against Broadcom Custom Chips
Nvidia has agreed to acquire AI developer platform Hugging Face for $12.9 billion, a move that extends the chipmaker beyond hardware into the software layer of the AI stack. The deal gives Nvidia access to a platform used by over 18 million developers and hosting more than 3 million models, positioning it to remain central in AI even as customers like Meta, Google, and OpenAI increasingly adopt custom silicon from Broadcom. Broadcom recently raised its AI chip revenue forecast to about $115 billion for fiscal 2027 and expects that to double to roughly $230 billion in fiscal 2028, though it faces rising competition in Google's TPU programs from Marvell. Needham analyst Rajvindra Gill reiterated a Buy rating on Nvidia with a $300 price target, while Reuters BreakingViews called the acquisition a strategic insurance policy. Nvidia CEO Jensen Huang has committed to keeping Hugging Face open to all developers and computing platforms, including rivals like AMD, but the deal does not fully eliminate the custom-silicon threat.
Marvell Stock Rises on Nvidia's Hugging Face Acquisition
Marvell Technology shares rallied as much as 6.3% on Friday after Nvidia confirmed its $12.9 billion acquisition of Hugging Face, a move that signals broader AI adoption and benefits Marvell as a key Nvidia partner. Nvidia's purchase of the open-source AI platform, which boasts over 18 million users and 3 million models, is seen as defensive and positions Nvidia for future growth, with CEO Jensen Huang noting that more than half of Nvidia's business is driven by open models. Marvell, which already has a strategic partnership with Nvidia and received a $2 billion investment from the chip giant earlier this year, stands to gain from increased AI infrastructure demand. The stock trades at 33 times next year's expected earnings, but its record revenue and accelerating growth make it an attractive prospect.
Broadcom shares fell about 3% in extended trading on Wednesday after the chipmaker forecast fourth-quarter revenue below Wall Street estimates, raising concerns that intensifying competition in custom AI processors could limit growth. The company expects fourth-quarter revenue of about $34.8 billion, below analysts' average estimate of $35.05 billion, while its AI chip sales forecast of $21.7 billion slightly exceeded estimates. Broadcom's custom-chip business faces growing competition, as Marvell's recent custom-chip agreement with Google could generate up to $120 billion in revenue through fiscal 2033. For the third quarter, AI chip sales more than tripled to $16.7 billion, helping lift total revenue to $29.59 billion, with adjusted earnings of $3.32 per share beating estimates. The stock has gained about 6% so far this year, trailing major semiconductor peers.
Broadcom's Q3 earnings beat fails to satisfy investors
Broadcom's third-quarter earnings beat was not enough to keep investors happy, according to StoneX Financial analyst Cody Acree. The company modestly beat estimates by $300 million and raised guidance by just over $120 million, with EPS coming in 10 cents above expectations. Acree noted that after Nvidia's strong results, investors expected similar strength from Broadcom, but the magnitude of the beat and raise was insufficient for a company so leveraged to AI. He also highlighted concerns about Marvell's expanded partnership with Google, which could take design dollars away from Broadcom in the future, and noted increasing competition from Qualcomm, Arm, and MediaTek in custom silicon.
Marvell Beats and Raises Guidance, but Google Deal Timeline Spooks Investors
Marvell Technology reported a clean beat-and-raise quarter with record data center strength and an expanded Google partnership, yet its shares fell more than 8% as investors focused on the delayed financial impact of the deal. Revenue rose 37% to $2.7 billion, $39 million above guidance, and the company raised its calendar year 2026 revenue outlook to $12 billion and its 2027 outlook to $18 billion. The Google partnership, which could involve roughly $120 billion in cumulative purchases over seven years if milestones are met, is expected to average about $25 billion annually from 2028 through 2033, with material upside starting in 2028. Management deferred specific long-term financial guidance and structural details to an October 6 event, and the narrow beats on revenue and earnings failed to impress given high expectations. Oppenheimer raised its price target to $325 from $300, reiterating an Outperform rating, while noting that data center revenues represented 79% of total revenues and that the Maia program could contribute $700 million next year.
AI-Driven Optical Transceiver Market Sees Major Investments and M&A
The global optical transceiver market is being reshaped by AI and high-speed networking, with NVIDIA committing $2 billion to Lumentum and Marvell planning to acquire Celestial AI for up to $5.5 billion. These investments highlight the surging demand for high-bandwidth connectivity from hyperscale AI infrastructures. Domestic manufacturing capacity is expanding in the U.S., and government policies are expediting procurement for AI-integrated optical communications. Lumentum Holdings closed at $914.76, up 2.2%, while Wiwynn rose 9.9% to NT$7,800.00 and Ruijie Networks fell 6.3% to CN¥119.37. In other moves, Microsoft expanded its collaboration with HUMAIN to offer an AI productivity bundle targeting one million users in the Middle East and Africa.
Marvell Raises Fiscal 2027 and 2028 Revenue Forecasts Again
Marvell Technology reported record revenue of $2.739 billion for its fiscal second quarter, up 37% year over year, and raised its full-year outlook for the second consecutive quarter. Data center sales climbed 46% to $2.17 billion, now 79% of the business, and management lifted fiscal 2027 revenue guidance to about $12 billion and fiscal 2028 to about $18 billion, with data center growth expected at 60% or more in both years. The company also disclosed an expanded custom silicon agreement with a major hyperscaler carrying potential cumulative revenue of $120 billion over roughly six years. Non-GAAP operating margin reached 36.6%, up 180 basis points, and earnings per share grew 40% to $0.94, though third-quarter gross margin is guided lower due to product mix. Management acknowledged supply constraints and planned about $1 billion in capacity prepayments, while total debt stood at $4.96 billion with a net debt-to-EBITDA ratio of 0.27x.
Broadcom's $16 Billion AI Revenue Target in Focus Ahead of Earnings
Broadcom is set to report fiscal third-quarter earnings after the market close on September 2, with investors focused on its guidance for AI semiconductor revenue to grow more than 200% year-over-year to $16 billion. The stock has underperformed the S&P 500 this year, up 6% versus the index's 12% gain, partly due to concerns about Alphabet expanding its TPU partnership with Marvell Technology. In the fiscal second quarter, Broadcom's revenue rose 48% to $22.18 billion, and net income jumped 88% to $9.31 billion, with CEO Hock Tan citing record results driven by AI demand. The upcoming report will test whether Broadcom can hit its $16 billion AI revenue target, which would help ease worries about competition from Marvell and potentially make the stock's year-to-date lag a buying opportunity.
Lumentum's AI Optics Push Boosts Growth Prospects Against Marvell and Nvidia
Lumentum is capitalizing on accelerating AI infrastructure spending, with its optical circuit switches (OCS) shipments doubling sequentially in the fiscal fourth quarter and the company expecting its first triple-digit OCS revenue quarter in the first quarter of fiscal 2027. The company is tracking toward more than $400 million in OCS revenues during the second half of calendar 2026 and aims to become the number one supplier to a major OCS customer in early 2027. In co-packaged optics (CPO), Lumentum expects ultra-high-power laser revenues to reach roughly $50 million by the end of calendar 2026 and its first triple-digit revenue quarter in the third quarter of fiscal 2027, having received its first external light source module order. Near-packaged optics (NPO) is seen as completely additive to its existing total addressable market, with new GPUs, XPUs, and TPUs arriving from mid-2027 through early 2028 expected to support wider adoption. However, Lumentum faces tough competition from Marvell, which has shipped over one million silicon-photonics DCI modules and expects scale-up optics revenues of roughly $300 million, and from Nvidia, which is collaborating with Marvell on silicon photonics and NVLink Fusion. Lumentum shares have appreciated 143% year to date, and the Zacks Consensus Estimate for its earnings is $4.23 per share, up 67 cents over the past 30 days, indicating 284.55% year-over-year growth.
Marvell Stock Drops on Google Warrant Despite $120 Billion Custom Revenue Potential
Marvell Technology shares fell 10.28% to $216.62 despite an earnings beat, as traders misread the expanded Google custom silicon agreement, which includes a warrant allowing Google to acquire up to 7% of Marvell shares as purchase milestones are met. The deal could generate up to $120 billion in cumulative custom revenue for Marvell through fiscal 2033, covering AI inference accelerators, storage controllers, network interface controllers, and memory controllers, so Marvell need not unseat Broadcom's flagship TPU to capture tens of billions in AI buildout spend. In Q2 FY2027, Marvell reported revenue of $2.739 billion, up 36.55% year over year, with non-GAAP EPS of $0.94, and raised FY2027 revenue guidance to roughly $12 billion with FY2028 growth of about 50%. Wall Street's consensus target is $278.89, implying 29% upside, with 38 of 43 analysts rating the stock Buy or Strong Buy and zero Sells. Risks include a high forward P/E of 60, a beta of 2.246, and a concentration of revenue from a few hyperscalers, but management expects custom revenue to more than double in fiscal 2028 and step higher in fiscal 2029, with an Investor Day on October 6, 2026, potentially resetting the long-term operating model.
Marvell Data Center Revenue Up 46% as Google Warrant Ties 7% Stake to Milestones
Marvell Technology reported fiscal second-quarter data center revenue of $2.1715 billion, up 46% year over year, and total revenue of $2.739 billion, up 36.55%, with management guiding to roughly 50% growth in fiscal 2028. The company also disclosed an expanded custom silicon agreement with Google that includes a warrant allowing Google to acquire up to 7% of Marvell's shares tied to revenue milestones, with one analyst estimating the deal could generate $120 billion in cumulative revenue over six years. Non-GAAP operating margin expanded to 36.6% from 34.8%, cash surged 221.2% to $3.93 billion, and the company repurchased $200 million of stock in the quarter. Marvell's forward P/E stands at 60, and shares are down 8.61% over the past week but up 155.27% year to date at $216.62, with an Investor Day scheduled for October 6, 2026.
AI-Driven Optical Transceiver Investment Surges as Hyperscale Demand and Strategic M&A Reshape Global Connectivity Infrastructure
A new BCC Research pulse report reveals that AI-driven demand for 400G, 800G, and 1.6T connectivity is accelerating photonics investment, highlighted by NVIDIA's $2 billion investment in Lumentum and Marvell's planned acquisition of Celestial AI for up to $5.5 billion. The report, titled "AI Impact on Optical Transceiver Market," examines how AI workload expansion, strategic corporate investment, and government digital infrastructure mandates are reshaping procurement priorities and technology roadmaps. Hyperscale AI infrastructure is the primary demand engine, with optimized transceiver-enabled architectures reducing GPU idle time from over 30% to below 15%. Domestic manufacturing capacity is scaling rapidly, with Applied Optoelectronics announcing a $150 million expansion in Texas and Lumentum investing in a new U.S. fabrication facility. Government policies across the U.S., EU, China, Japan, and India are accelerating procurement timelines, while emerging technologies like co-packaged optics and Celestial AI's Photonic Fabric, targeting 16 Tbps solutions, are redefining the performance frontier. Coherent Corp. flagged revenue growth exceeding 22% year-over-year and earnings per share growth of 2.8x, driven by AI data center exposure.
Marvell Plunges on Weak Guidance; Gap, Workday Surge
Marvell Technology Inc.'s shares plunged 10.3% after the company provided weak guidance for third-quarter fiscal 2027 adjusted gross margin. In contrast, Workday Inc. climbed 5.8% after posting first-quarter fiscal 2027 adjusted earnings of $2.75 per share, surpassing the Zacks Consensus Estimate of $2.62 per share. The Gap Inc. jumped 12.9% after reporting second-quarter 2026 adjusted earnings of $0.52 per share, outpacing the Zacks Consensus Estimate of $0.50 per share. Meanwhile, MINISO Group Holding Ltd.'s shares tumbled 4.4% after reporting second-quarter 2026 adjusted earnings of $0.26 per share, lagging the Zacks Consensus Estimate of $0.31 per share.
Dow closes slightly lower after Fed chief reiterates inflation target
U.S. stocks closed in negative territory on Friday (Aug. 28) after Federal Reserve Chair Kevin Warsh reiterated the goal of curbing inflation during the Jackson Hole meeting, leading to expectations that the Fed may raise interest rates. The Dow Jones Industrial Average closed at 53,559.99 points, down 9.45 points (-0.02%), while the S&P 500 closed at 7,711.76 points, down 19.23 points (-0.25%), and the Nasdaq closed at 26,402.42 points, down 138.93 points (-0.52%). Warsh stated that if there is not enough confidence that inflation will fall to the 2% target, the Fed will have more work to do, leading investors to increase the likelihood of a rate hike in September. Meanwhile, Nvidia shares fell 4.6% and Marvell Technology dropped 10.3% on concerns about revenue from AI chip deals with Google. PayPal shares also fell 12.7% following reports that Advent and Stripe had abandoned plans to acquire the company. Trading volume on U.S. stock markets was 15.68 billion shares, higher than the 20-day average of 15.8 billion shares.
Jim Cramer: Marvell Expensive Unless Everything Works
Jim Cramer said on CNBC's Squawk on the Street that Marvell Technology is a very expensive stock unless everything works, and then it is cheap, framing the setup as similar to NVIDIA a couple of years back. Marvell reported an earnings beat on August 27, 2026, yet its stock closed at $216.62, down 10.28% the next session, with a trailing PE of 83x and a forward PE near 61x. Cramer's math relies on fiscal 2028 revenue growth of approximately 50% year over year and data center growth of more than 60%, as well as the custom silicon ramp. Marvell's operating margin is 14.5% on a trailing basis, and management expects to reach 38%-40% non-GAAP operating margin as fiscal 2028 progresses. The October 6 analyst meeting is a genuine catalyst, but data center accounts for 79% of total revenue, so a hyperscaler pullback could unwind the bull case.
Nvidia's Strong Earnings Highlight Growing Segmentation in Tech Trade
Nvidia's banner quarter on Wednesday confirmed that AI demand remains robust, yet shares of fellow chip designer Marvell Technology plunged despite its own strong earnings, underscoring a more segmented tech trade. Strategists note that software stocks, which were hammered in 2026, have rebounded as investors adopt a nuanced view of AI disruption. Macquarie's Steve Koenig emphasized that acceleration is key, with stocks showing growth rewarded. The 'Magnificent Seven' have become the 'Lag Seven' for some, with Amazon up 15% and Nvidia up 10% over the past month, while Alphabet has shed roughly $692 billion, falling 15% from its May high amid concerns over infrastructure spending and talent departures. Hyperscalers' massive financing deals, with capex expected to exceed $1 trillion in 2027, may face spending hurdles due to labor shortages and permitting delays, according to F.L.Putnam's Ellen Hazen. Despite this, the chip market's rapid growth offers room for challengers like Alphabet and Marvell, as noted by Moor Insights' Patrick Moorhead.
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