Marvell Technology (MRVL) anticipates a significant growth in its interconnect business, expecting over a 70% year-over-year increase in fiscal 2027, driven by rising demand for AI infrastructure and data centers. The company also forecasts annualized revenues of over $1 billion from both transimpedance amplifiers (TIAs) and drivers, as well as data center interconnect (DCI) modules by fiscal 2028.
In the first quarter of fiscal 2027, Marvell reported a non-GAAP gross margin decrease to 58.9%, down from 59.8% a year prior, although the company saw an operating margin increase to 35%. For the upcoming quarter, MRVL projects a gross margin between 58.25% and 59.25%. Shares have surged 188.7% year-to-date, outpacing the Zacks Electronics – Semiconductors industry’s 51.2% growth.
Marvell faces strong competition from Broadcom and Advanced Micro Devices in the AI networking and custom silicon markets. The firm is currently valued at a forward price-to-sales ratio of 15.89, above the industry average of 9.50. Analysts forecast earnings growth of 32.3% for fiscal 2027 and 36.8% for fiscal 2028.
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