Marvell raises fiscal 2027 and 2028 revenue outlooks amid data center growth

Marvell Technology just posted a quarter that most chipmakers would frame and hang on the wall. Fiscal Q2 2027 revenue hit $2.739 billion, a 37% jump from the same period a year ago, and management responded by doing something increasingly rare in semiconductor land: raising guidance not once, but for the second consecutive quarter.

The company now expects fiscal 2027 revenue of approximately $12 billion, representing roughly 45% growth. Fiscal 2028? About $18 billion, which would mean 50% growth on top of an already inflated base.

Data centers are running the show

The engine behind all of this is Marvell’s data center segment, which generated $2.17 billion in Q2 revenue alone. That’s a 46% increase year-over-year and now represents 79% of the company’s total sales.

The growth is being driven by a convergence of product lines: custom AI silicon, high-speed interconnects, switching solutions, and optical products. All of these feed into the same macro trend, which is hyperscaler companies like Google, Amazon, and Microsoft pouring tens of billions into AI infrastructure.

CEO Matt Murphy described custom AI silicon bookings as “exceptionally robust” during the August 27 earnings call. Custom AI silicon revenue was $1.5 billion in fiscal 2026, and analysts expect that figure to more than double by fiscal 2028. The ramp is expected to accelerate meaningfully in the back half of fiscal 2027.

For Q3 of fiscal 2027, Marvell guided to approximately $3.15 billion in revenue, which would represent more than 50% year-over-year growth.

The Google deal adds upside and uncertainty

One of the more interesting wrinkles in Marvell’s story is an expanded custom silicon agreement with Google. The partnership includes a warrant option that would allow Google to acquire up to 7% of Marvell’s outstanding shares upon meeting certain milestones.

Shares initially dropped following the earnings report, largely because investors weren’t sure about the timeline for when Google’s contributions would materially flow through to revenue. The warrant structure created questions about dilution and execution timing that the market wasn’t fully prepared to answer.

What the numbers mean for the broader AI chip race

Marvell’s strength lies in custom silicon, where hyperscalers design their own chips and need a manufacturing and design partner to bring them to life, as well as the networking and optical infrastructure that connects AI clusters. Marvell’s expanded partnership with Google fits squarely into the broader trend of hyperscalers designing custom silicon tailored to their specific workloads, of which Google’s Tensor Processing Units are perhaps the most well-known example.

With fiscal 2028 revenue projected at $18 billion, Marvell would be generating more than double its fiscal 2026 custom AI silicon revenue of $1.5 billion from that segment alone.