Marvell Technology raised its fiscal 2028 revenue target to $20 billion and, for the first time, laid out a fiscal 2031 framework of $70 billion to $90 billion in revenue at its investor day Tuesday, Investing.com reported. The shares rose about 5.8% to $287.01 after an early dip.

What Happened

The new fiscal 2028 target compares with a Wall Street consensus of about $18.2 billion, according to Investing.com. Marvell expects data center revenue alone to reach about $18 billion that year.

For fiscal 2031, the company projected revenue of $70 billion to $90 billion and earnings of $30 a share or more. Analysts had been expecting roughly $47 billion in revenue and about $19 in earnings per share for that year. Management put Marvell's total addressable market at $400 billion by 2030.

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At the $80 billion midpoint, the fiscal 2031 mix breaks down to about $37.5 billion from interconnect, $30 billion from custom compute, $10 billion from switching and storage, and $2.4 billion from communications and other products.

Marvell also raised its fiscal 2029 custom silicon target to more than $12 billion from $10 billion. Management described a category of "XPU attach" sockets, chips that sit alongside each AI accelerator, and said it expects one to two per accelerator at average selling prices near $1,000, according to a Raymond James note cited by Investing.com.

CEO Matt Murphy walked through the expanded market opportunity, while CFO Dan Durn pointed to the speed and scale of the global AI infrastructure buildout as support for long-term demand.

Why It Matters

Marvell is betting that the biggest cloud providers will keep designing their own AI chips and that it will build many of them, competing mainly with Broadcom. The targets also put more weight on connectivity than on compute. Interconnect, including the optical and electrical links that tie thousands of accelerators together, is the largest piece of the fiscal 2031 mix.

Raymond James analyst Simon Leopold reiterated his Strong Buy rating, writing that the targets substantially raise the ceiling on Marvell's AI opportunity. He said scale-up connectivity and optics may prove at least as important to the long-term story as custom compute, and that Marvell's custom silicon agreement with Google is only partly reflected in the fiscal 2031 framework. Leopold said about $2 billion added to the fiscal 2028 outlook came from strength in optics and switching.

Market Reaction

The stock fell about 3% early in the session, then climbed as much as 10% before closing up about 5.8%, according to Investing.com. Yahoo Finance said the move took the shares to their highest level since June.

The rally came on a strong day for chip stocks. The S&P 500 and Nasdaq Composite both closed at records, Nvidia hit an all-time high and AMD also reached a new high, according to Yahoo Finance. Broadcom, Marvell's main rival in custom AI chips, climbed about 4% during the session, 24/7 Wall St. reported.

What to Watch

The fiscal 2031 range spans $20 billion, a reflection of how much depends on custom chip programs that Marvell has yet to win or ramp. Investors will test the targets against hyperscaler capital spending plans and against Marvell's next quarterly results, which will show whether optics and switching demand is tracking the higher fiscal 2028 goal. Any update on the Google program or new custom silicon customers would bear directly on the upper end of the framework.