Marvell Technology is shifting its focus from custom silicon to optical interconnects for AI data centers. Analyst John Vinh estimates the total addressable market for scale-up networking will reach $30 billion by 2030, with $20 billion attributed to optical technologies and $10 billion to switching capabilities. Following this outlook, the target price for Marvell shares was raised by 48% to $385.
The company projects revenue of approximately $12 billion for fiscal year 2027 and $18 billion for fiscal year 2028, totaling $30 billion. This represents an increase from the previous guidance of $20 billion. The data center interconnect segment is expected to grow by over 70% year-over-year in fiscal year 2027.
To strengthen its position, Marvell acquired Celestial AI in December 2025 for $3.25 billion to gain silicon photonics technology. Additionally, the company purchased XConn for $540 million to integrate chiplet interconnect technology. Marvell is developing near-packaged and co-packaged optics to improve data transfer efficiency between AI accelerators.
Marvell has expanded its partnership with NVIDIA, covering custom silicon, optics, and NVLink technology. The company also signed a multi-year supply agreement with Google. Driven by these developments and improved financial forecasts, Marvell shares have risen by more than 180% in 2026.
