Marvell Technology Group "Data Center Revenue Growth Accelerating In F28" (Buy)

Research evidence excerpt

Marvell Technology Group "Data Center Revenue Growth Accelerating In F28" (Buy)

the key driver being Custom ASIC segment where existing programs, MSFT ramp

and XPU-attach should each contribute about ⅓ of the $2B+ Y/Y increase. Beyond

Custom ASIC, MRVL highlighted scale-up 1.6T to step up in FY28, DCI (scale-

across) expected to reach $1B run rate in FY28, and CPO/optical that is now

expected to be 2x higher vs prior $150MM outlook.

In interconnect, MRVL is seeing strong demand for 800G scale-out solutions, with

1.6T revenue ramping in FY27 and increasing substantially in FY28. Beyond the

DSP, management noted its TIAs/drivers business continues to scale, suggesting

over $1B/yr annualized runrate in the next few quarters.

In switching, MRVL continues to see demand for 12.8T scale-out platforms, with

next-gen 51.2T switches ramping and engagement broadening across existing/

new customers. Management now expects scale-out switch revenue to exceed

$600MM in FY27, doubling Y/Y, and sees the business tracking to >$1B/yr

annualized revenue in FY28. MRVL also highlighted its new 100T platform and

roadmap towards 200T Ethernet switching, while scale-up switching remains an

emerging upside vector supported by UALink/Ethernet development, XConn, and

NVLink Fusion.

MRVL also reiterated the momentum it is seeing in AECs / retimers as it expects

combined revenues to more than double in FY27 and continue to grow rapidly in

FY28.

MRVL expects scale-up optics revenue to ramp significantly in FY28, with revenue

now forecast to more than double the prior ~$150MM outlook, implying roughly

~$300MM next year from "true" NPO/CPO solutions. Management said adoption

is accelerating across multiple CPO/NPO engagements, with Celestial’s photonic