Marvell Technology Inc. (NASDAQ: MRVL) announced new financial targets at its investor day on Tuesday, resulting in a nearly 4% rally in the company's stock. The company now expects approximately $20 billion in revenue for fiscal 2028, which exceeds the Wall Street analyst consensus estimate of $18.2 billion.

For the first time, Marvell also set a long-term target for fiscal 2031, projecting revenue between $70 billion and $90 billion. This range is significantly higher than prior analyst models, which predicted around $45 billion for that fiscal year. To achieve the lower end of the 2031 target, revenue would need to grow by approximately 54% annually for five consecutive years.

The company reported $8.2 billion in revenue for the fiscal year ending September 30, 2026. Marvell's fiscal 2028 goal represents a substantial increase from its previous outlook. Less than a year ago, in December 2025, the company expected about $13 billion in revenue for fiscal 2028. The target has been raised five times since then, climbing roughly 54% over a 10-month period.

CEO Matt Murphy stated that Marvell’s addressable market in the artificial intelligence sector could reach $400 billion by 2030. The company attributes its growth to two key areas within AI data centers: custom chips and connectivity solutions. Marvell designs and builds custom processors for large cloud companies like Google and Amazon to reduce reliance on competitors, and it manufactures optical and networking chips that facilitate data transfer between AI processors.

Marvell expanded a commercial agreement with Google in late July covering custom processors and related chips. The company indicated that the main revenue impact from this partnership will arrive in fiscal 2029 and beyond. The stock was trading at $282.08 at the time of publication, representing a gain of 3.99%.