Marvell Technology Forges AI Alliance and Posts Record Financials

Marvell Technology announces a $2B partnership with Nvidia, driving a 42% revenue surge to $8.2B. The company issues aggressive guidance targeting over $11B in FY2027.

Marvell Technology has announced a major strategic partnership with Nvidia valued at $2 billion, coinciding with the release of its fiscal year results that showed a substantial revenue surge. The company’s deepening technological integration within Nvidia's AI infrastructure is cementing its pivotal role in the data center market. Bolstered by this position, management has issued significantly more aggressive financial guidance for the coming years.

Strategic Partnership and Technological Integration

The cornerstone of Marvell's recent announcement is its deepened collaboration with Nvidia. The company's custom-designed AI accelerators are being integrated directly into Nvidia's high-speed network via the new "NVLink Fusion" platform. This enables data transfer speeds of up to 1.8 terabytes per second within server racks, a critical advancement for AI workloads.

This move is supported by strategic acquisitions in silicon photonics, including Celestial AI and XConn Technologies. Marvell is already testing chips that use light to transmit data and is manufacturing initial cutting-edge 2-nanometer accelerators. Market observers view the Nvidia investment as a clear validation of Marvell's technological leadership in this space.

Record Financial Performance Driven by Data Centers

For the recently concluded fiscal year 2026, Marvell's revenue jumped 42% to approximately $8.2 billion. The data center segment was the primary growth engine, contributing $6.1 billion alone—roughly three-quarters of total revenue. Even the fourth quarter outperformed, with revenue of $2.22 billion surpassing Wall Street expectations. Adjusted earnings per share rose year-over-year from $0.60 to $0.80, with a net margin of nearly 33%.

This fundamental strength is reflected directly in the share price performance. The stock reached a new 52-week high of €92.00 on Wednesday, marking a gain of nearly 38% over the past 30 days alone.

Aggressive Forward-Looking Guidance

Fueled by intense demand for AI infrastructure, Marvell's management has outlined ambitious targets. For fiscal year 2027, the company is now targeting revenue exceeding $11 billion, with the data center business expected to grow an additional 40%. Looking further ahead to 2028, the focus shifts to reaching the $15 billion revenue mark, coupled with an anticipated earnings per share of over $5.00.

Several analysts promptly updated their assessments following the new forecasts. Bank of America raised its price target to $125, while Benchmark issued a target of $130. Beyond potential capital appreciation, shareholders will receive a regular quarterly dividend of $0.06 per share on April 30.