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Marvell projects 40% data center growth and expansion in custom silicon and storage through fiscal 2028
Monday, January 12, 2026 at 07:00 PM
Marvell Technology's CEO projects the company's data center revenue will grow by 40% in fiscal year 2028, significantly outpacing capital expenditure growth. The forecast includes a 20% growth rate for the custom silicon business and 15% growth for switching and storage segments next year.
Context
Marvell Technology recently projected a significant growth trajectory through fiscal 2028, driven by a surge in demand for AI-related infrastructure. CEO Matt Murphy expects the company’s data center segment to grow in excess of 40% year-over-year, effectively doubling the anticipated growth rate of general cloud capital expenditures. This expansion is underpinned by a rapid transition toward high-performance custom silicon and optical interconnects, which are essential for scaling the massive clusters required for generative AI.
Beyond its core data center business, Marvell forecasts that its custom silicon division will grow by 20% next year, while the switching and storage segments are projected to increase by 15%. This multifaceted growth suggests that the company is successfully capturing market share across the entire AI hardware stack. By securing long-term design wins with hyperscale providers, Marvell is positioning itself to maintain high-margin revenue streams as the industry moves toward specialized, power-efficient computing architectures through the end of the decade.
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