Why is Marvell going to the moon? 5 must-knows for investors
By Vlad from Bastion on
1. Custom silicon is the whole story. Management now sees a $10B custom silicon (XPU) revenue opportunity in 2028, up from roughly $1.5-2.5B today. The entire Marvell thesis is a bet that orders for custom AI chips keep climbing.
2. Scale-out switching adds a new $1B. Marvell builds the switches that wire thousands of servers into one network. That business alone is set to bring in another $1B in revenue by 2028.
3. DCI modules are the next growth leg. Data-center interconnect modules (the links between separate data centers, needed once a single site runs out of power and space) are expected to grow from $500M to $1B.
4. Revenue nearly triples. Total company revenue is expected to grow from $8B to $22B by FY2029, a 39% CAGR. That lands Marvell in the 97th percentile for growth worldwide on the Bastion Growth Score.
5. Not cheap, but not crazy. Forward P/E sits at 46x, yet only 31x on expected 2029 earnings. That is about 2x the market, still reasonable for a growth company of this caliber.
The stock stays in our Growth Rocket portfolio, the strategy that hunts for fast-growing companies with strong price momentum.
$MRVL