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Can MRVL's AI Backlog Drive Revenues to Nearly $11B in FY27?
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Key Takeaways
Marvell projects fiscal 2027 revenues near $11B as AI bookings and backlog accelerate.
MRVL expects data center revenues to grow nearly 40%, led by AI networking demand.
Marvell's custom silicon business topped $1.5B in fiscal 2026 and targets 20% growth.
Marvell Technology (MRVL - Free Report) is favorably positioned to deliver revenue growth close to 30% in fiscal 2027, largely driven by accelerating AI-related backlog and strong demand across its data center portfolio. The company exited fiscal 2026 with record bookings, robust hyperscaler demand and expanding deployment across interconnect, switching and custom silicon products.
Marvell reported fiscal 2026 revenues of $8.2 billion, up 42% year over year, while data center revenues surpassed $6.1 billion, up 46%. The company stated that bookings accelerated at a record pace entering fiscal 2027, leading management to forecast fiscal 2027 revenues to be $11 billion, implying growth of more than 30% year over year.
The strongest contributor to this outlook is AI infrastructure demand. Marvell Technology expects fiscal 2027 data center revenues to grow nearly 40%, supported by cloud capital expenditure increases and stronger customer orders. Its interconnect business alone is projected to grow more than 50% year over year, significantly above prior expectations. The company is benefiting from strong adoption of 800G and 1.6T optical products, growing deployment of active electrical cables and retimers, and rapid scaling of AI networking solutions.
Custom silicon is another major growth engine. Marvell Technology’s custom business doubled in fiscal 2026 to roughly $1.5 billion and is expected to grow more than 20% again in fiscal 2027. Management highlighted strong visibility supported by purchase orders, production ramps and increasing XPU attach opportunities, such as CXL and NIC products.
Acquisitions like Celestial AI and XConn strengthen Marvell Technology’s position in AI scale-up networking, although these are not expected to contribute materially until fiscal 2028. Overall, the company’s expanding AI backlog, accelerating bookings and diversified hyperscaler exposure provide strong support for revenue growth approaching 30% in fiscal 2027.
How Competitors Fare Against MRVL
Broadcom’s (AVGO - Free Report) advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Broadcom’s Semiconductor segment, which accounts for its custom silicon solutions, grew 11% year over year in the first quarter of fiscal 2025.
Advanced Micro Devices (AMD - Free Report) is another player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices’ reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers.
While Broadcom and Advanced Micro Devices are formidable players in the custom silicon space for AI accelerators, Marvell Technology’s move toward the 2.5D packaging platform and leveraging of modular RDL interposer technology is likely to push it much ahead of other players in this space.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 107.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 35.4%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 13.15X, lower than the industry’s average of 8.99X.
MRVL Forward 12-Month Performance Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 32.3% and 36.8%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past seven days.
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Can MRVL's AI Backlog Drive Revenues to Nearly $11B in FY27?
Key Takeaways
Marvell Technology (MRVL - Free Report) is favorably positioned to deliver revenue growth close to 30% in fiscal 2027, largely driven by accelerating AI-related backlog and strong demand across its data center portfolio. The company exited fiscal 2026 with record bookings, robust hyperscaler demand and expanding deployment across interconnect, switching and custom silicon products.
Marvell reported fiscal 2026 revenues of $8.2 billion, up 42% year over year, while data center revenues surpassed $6.1 billion, up 46%. The company stated that bookings accelerated at a record pace entering fiscal 2027, leading management to forecast fiscal 2027 revenues to be $11 billion, implying growth of more than 30% year over year.
The strongest contributor to this outlook is AI infrastructure demand. Marvell Technology expects fiscal 2027 data center revenues to grow nearly 40%, supported by cloud capital expenditure increases and stronger customer orders. Its interconnect business alone is projected to grow more than 50% year over year, significantly above prior expectations. The company is benefiting from strong adoption of 800G and 1.6T optical products, growing deployment of active electrical cables and retimers, and rapid scaling of AI networking solutions.
Custom silicon is another major growth engine. Marvell Technology’s custom business doubled in fiscal 2026 to roughly $1.5 billion and is expected to grow more than 20% again in fiscal 2027. Management highlighted strong visibility supported by purchase orders, production ramps and increasing XPU attach opportunities, such as CXL and NIC products.
Acquisitions like Celestial AI and XConn strengthen Marvell Technology’s position in AI scale-up networking, although these are not expected to contribute materially until fiscal 2028. Overall, the company’s expanding AI backlog, accelerating bookings and diversified hyperscaler exposure provide strong support for revenue growth approaching 30% in fiscal 2027.
How Competitors Fare Against MRVL
Broadcom’s (AVGO - Free Report) advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Broadcom’s Semiconductor segment, which accounts for its custom silicon solutions, grew 11% year over year in the first quarter of fiscal 2025.
Advanced Micro Devices (AMD - Free Report) is another player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices’ reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers.
While Broadcom and Advanced Micro Devices are formidable players in the custom silicon space for AI accelerators, Marvell Technology’s move toward the 2.5D packaging platform and leveraging of modular RDL interposer technology is likely to push it much ahead of other players in this space.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 107.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 35.4%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 13.15X, lower than the industry’s average of 8.99X.
MRVL Forward 12-Month Performance Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 32.3% and 36.8%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past seven 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.