Marvell sees custom chip revenue topping $10 billion by 2029

Marvell Technology is betting that the next phase of the AI buildout will be as much about custom silicon as it is about Nvidia’s headline GPUs. The chipmaker said its custom chip business is on track to exceed $10 billion in revenue by fiscal 2029, a forecast that helped push its shares more than 6% higher in extended trading on Wednesday.

The outlook points to a broader shift in data-center spending. Marvell said demand from cloud companies building artificial-intelligence infrastructure is driving growth in networking chips, interconnect technologies and bespoke processors designed to reduce reliance on Nvidia hardware. Chief executive Matt Murphy said the company has custom engagements across the major U.S. hyperscalers, putting Marvell squarely inside the spending plans of the largest cloud operators.

Investors also got a sharper view of the company’s near-term momentum. Marvell raised its fiscal 2028 revenue forecast to about $16.5 billion from $15 billion, and said second-quarter revenue should reach $2.70 billion, plus or minus 5%, above Wall Street’s estimate of about $2.60 billion. Adjusted profit is expected to come in at 93 cents a share, plus or minus 5 cents, also ahead of analyst forecasts.

The company’s first quarter already showed how quickly AI infrastructure is swelling the business. Data-center revenue reached $1.83 billion, up 27% from a year earlier, while total revenue was $2.42 billion, both above estimates. Marvell said its data-center business should grow about 50% this year, a pace that suggests large cloud providers are still in the middle of a heavy buildout rather than pulling back.

Marvell’s full-year fiscal 2026 revenue came to $8.195 billion, underscoring how steep the climb is from today’s scale to the 2029 goal. The company is also adding technology and capacity through acquisitions. It closed its Celestial AI transaction on February 2, 2026, and said in SEC filings that Celestial revenue should begin contributing in the second half of fiscal 2028, could hit a $500 million annualized run rate in the fourth quarter of fiscal 2028, and reach $1 billion annualized by the fourth quarter of fiscal 2029.

The company has been filling out that strategy quickly. On March 19, Marvell announced it was joining Nvidia’s AI ecosystem through NVLink Fusion, and on March 31 it said it acquired Polariton Technologies to advance optical performance scaling to 3.2T and beyond. Taken together, the moves show a company racing to supply the plumbing beneath AI training and inference, where networking, optics and custom logic may prove just as valuable as the processors grabbing the spotlight.