Marvell Technology targets $16B in data-center revenue amid AI growth

Marvell Technology shares rose over 7% following comments from CEO Matt Murphy regarding the company’s strategic position in the artificial intelligence sector. Murphy described Marvell as the ‘Switzerland’ of the semiconductor industry, emphasizing its ability to work with a wide range of customers to build trust and credibility.

During the Citi Global TMT Conference, Murphy outlined a significant growth trajectory for the company’s data-center business. After generating approximately $2.2 billion in data-center revenue in 2023, Marvell is targeting $15 billion to $16 billion next year. This growth is expected to be driven by AI networking, optical connectivity, custom silicon, and supply-chain capacity expansion.

Key technological drivers include scale-up networking, combining switching platforms with near-packaged optics (NPO) and co-packaged optics (CPO). The company’s Teralynx switching platform is projected to exceed $1 billion in revenue. Despite recent competition, such as Qualcomm securing a deal to design custom AI chips for Amazon, Marvell maintains significant partnerships, including a deal with Google to design custom AI chips.