Updated
Updated · Yahoo Finance · Aug 28
Marvell Lifts FY2028 Revenue Outlook to $18 Billion After Record $2.74 Billion Q2
Updated
Updated · Yahoo Finance · Aug 28

Marvell Lifts FY2028 Revenue Outlook to $18 Billion After Record $2.74 Billion Q2

3 articles · Updated · Yahoo Finance · Aug 28

Summary

  • $18 billion is Marvell’s new FY2028 revenue target, after the chipmaker posted record fiscal Q2 revenue of $2.739 billion and raised its FY2027 outlook to about $12 billion.
  • Data center sales drove the upgrade, climbing to a record $2.17 billion—79% of total revenue—while Marvell said broad demand in interconnect, switching and custom silicon remains strong.
  • Q3 guidance points to further acceleration: revenue of about $3.15 billion, plus or minus 5%, implying 15% sequential growth and more than 50% year-over-year growth, with non-GAAP EPS of $1.05 to $1.15.
  • Profitability also improved, with non-GAAP operating margin reaching 36.6% and gross margin 58.9%, while Marvell generated $606 million in operating cash flow and repurchased $200 million of stock.
  • The outlook was reinforced by an expanded Google custom-chip agreement and management’s expectation that data center revenue will grow about 60% in FY2027 and more than 60% in FY2028.

Insights

With a billion-dollar bet on TSMC capacity, will Marvell's custom silicon strategy successfully dethrone traditional AI processors?
Can Marvell's highly anticipated optical interconnect technology survive real-world testing, or are its bold performance claims just simulations?