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Marvell Technology Deepens Its Connectivity Portfolio: What's Ahead?
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Key Takeaways
MRVL saw data center revenues jump 46.5% to $6.1B, driven by AI connectivity demand.
MRVL launched new CXL and PCIe 6.0 switches and partnered with Lumentum for AI infrastructure
MRVL expects interconnect business to grow over 50% by fiscal 2027 amid competition.
Marvell Technology (MRVL - Free Report) is gaining robust momentum in its connectivity portfolio. Traction across 800G optical products, Active Electrical Cables (AEC), PCIe Gen 6 and CXL 3.1 switching, transition to 1.6T solutions and inclusion of Celestial AI photonic fabric are the latest growth drivers for the company.
In fiscal 2026, MRVL’s data center revenues, which account for its connectivity products, grew 46.5% year over year to reach $6.1 billion, driven by strong traction in custom XPU silicon, electro-optic interconnect products and next-generation switch offerings. The company is now doubling down on its connectivity portfolio to ride on the growth trajectory.
Since AI data centers have been the major customers for MRVL’s connectivity portfolio, the company has now launched a CXL 3.0 switch (Structera S 30260) designed to pool memory across servers, addressing a major bottleneck in AI systems. Marvell Technology also partnered with Lumentum for optical circuit switching for next-generation AI infrastructure.
The company recently added the industry’s first 260-lane PCIe 6.0 switch (Structera S 60260) for high-performance AI scale-up systems in its connectivity portfolio. Marvell Technology is seeing robust strength for its products as the global AI infrastructure spending rises.
Based on the current growth trend, MRVL predicts that its interconnect business will grow more than 50% in fiscal 2027. However, the company faces competitive pressure in the AI connectivity space.
How Competitors Fare Against MRVL
Marvell Technology competes with Broadcom (AVGO - Free Report) and Credo Technology (CRDO - Free Report) in the connectivity market. Credo has a wide portfolio of AEC, SerDes IP, Retimer ICs and system design. Credo’s business is mainly driven by its strong AEC business, which posted double-digit sequential growth last quarter.
Credo’s hyperscaler customer base is expanding, while it is also experiencing robust growth in optical DSP and LRO solutions, along with rising PCIe and Ethernet retimer adoption. Broadcom has a stronghold in carrier Ethernet and transport markets and is a major player in telecom optical interconnects and routing silicon space. Broadcom’s advanced 3.5D XDSiPs are crucial for AI XPU connectivity due to higher density.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 20.9% in the past year compared with the Zacks Electronics - Semiconductors industry’s growth of 57.3%.
MRVL One-Year Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 6.77X, lower than the industry’s average of 7.22X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 33.1% and 38.6%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Marvell Technology Deepens Its Connectivity Portfolio: What's Ahead?
Key Takeaways
Marvell Technology (MRVL - Free Report) is gaining robust momentum in its connectivity portfolio. Traction across 800G optical products, Active Electrical Cables (AEC), PCIe Gen 6 and CXL 3.1 switching, transition to 1.6T solutions and inclusion of Celestial AI photonic fabric are the latest growth drivers for the company.
In fiscal 2026, MRVL’s data center revenues, which account for its connectivity products, grew 46.5% year over year to reach $6.1 billion, driven by strong traction in custom XPU silicon, electro-optic interconnect products and next-generation switch offerings. The company is now doubling down on its connectivity portfolio to ride on the growth trajectory.
Since AI data centers have been the major customers for MRVL’s connectivity portfolio, the company has now launched a CXL 3.0 switch (Structera S 30260) designed to pool memory across servers, addressing a major bottleneck in AI systems. Marvell Technology also partnered with Lumentum for optical circuit switching for next-generation AI infrastructure.
The company recently added the industry’s first 260-lane PCIe 6.0 switch (Structera S 60260) for high-performance AI scale-up systems in its connectivity portfolio. Marvell Technology is seeing robust strength for its products as the global AI infrastructure spending rises.
Based on the current growth trend, MRVL predicts that its interconnect business will grow more than 50% in fiscal 2027. However, the company faces competitive pressure in the AI connectivity space.
How Competitors Fare Against MRVL
Marvell Technology competes with Broadcom (AVGO - Free Report) and Credo Technology (CRDO - Free Report) in the connectivity market. Credo has a wide portfolio of AEC, SerDes IP, Retimer ICs and system design. Credo’s business is mainly driven by its strong AEC business, which posted double-digit sequential growth last quarter.
Credo’s hyperscaler customer base is expanding, while it is also experiencing robust growth in optical DSP and LRO solutions, along with rising PCIe and Ethernet retimer adoption. Broadcom has a stronghold in carrier Ethernet and transport markets and is a major player in telecom optical interconnects and routing silicon space. Broadcom’s advanced 3.5D XDSiPs are crucial for AI XPU connectivity due to higher density.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 20.9% in the past year compared with the Zacks Electronics - Semiconductors industry’s growth of 57.3%.
MRVL One-Year Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 6.77X, lower than the industry’s average of 7.22X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 33.1% and 38.6%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.