What Marvell's rosy long-term guidance means for our AI chip stocks

Marvell Technology shares jumped more than 6% on Tuesday after the company delivered upbeat short- and long-term guidance at its investor day. The AI-chip and networking specialist raised its fiscal 2028 revenue outlook to $20 billion, up from the $18 billion it guided with its fiscal 2027 second-quarter results. Marvell said the extra $2 billion is driven by demand for data-center connectivity, including interconnect scale-up optics and switching, and by growth in its custom chip business. It expects custom revenue to triple in fiscal 2029 to more than $12 billion, while projecting total revenue of $70 billion to $90 billion in fiscal 2031. Management also forecast data-center capex hitting $3 trillion by 2030, with growth moderating later. Nvidia and Broadcom were also highlighted as peers benefiting from the same compute and connectivity trends.