Marvell Technology raises its 2028 revenue guidance to $20 billion, driven by sustained custom AI chip demand from hyperscalers.

Marvell Technology stock surged roughly 8% on Tuesday, reaching its highest level since June, after the semiconductor designer raised its revenue guidance for fiscal year 2028. CEO Matt Murphy announced at the company's investor day conference that Marvell expects approximately $20 billion in total company revenue for FY28, representing about 67% year-over-year growth—exceeding the average analyst estimate. The previous guidance issued in August had been $18 billion, while Wall Street had anticipated $18.2 billion for the period.

The company projects the total addressable AI market will reach approximately $400 billion by 2030, driven by custom silicon programs with major hyperscalers including Amazon, Google, and Microsoft. Marvell designs high-speed infrastructure and custom chips that enable AI computers to communicate with one another, positioning it in direct competition with Broadcom as semiconductor stocks remain at the center of the artificial intelligence trade this year.

Earlier in 2026, Marvell stock rallied sharply after Nvidia CEO Jensen Huang described the chip designer as "the next trillion-dollar company." The company joined the S&P 500 index in June and has delivered substantial returns for shareholders, with shares up more than 240% year to date. The broader semiconductor sector has continued to drive markets to all-time highs as investors focus on AI infrastructure buildout and the companies enabling it.