Marvell Sees 10 Billion Dollar Custom Chip Revenue by 2029
The chipmaker raised its long-term revenue forecasts as cloud providers invest in specialized hardware to power artificial intelligence data centers. Marvell reported first-quarter earnings that beat analyst estimates and expects its data center business to grow by 50% this year.
Marvell Technology Inc expects its custom chip revenue to exceed $10 billion by fiscal 2029 as AI demand scales. The forecast reflects a $5 billion increase in incremental revenue from fiscal 2028 to 2029 for that specific business unit. Investors are tracking how hyperscalers pivot toward bespoke silicon to lower their dependence on expensive third-party processors.
### Hyperscalers Drive Custom Silicon Shift Cloud giants in the United States are expanding AI data centers and investing in specialized hardware. Alphabet Inc-Cl A and Amazon.com Inc are projected to spend over $700 billion on AI infrastructure this year. This represents a rise from approximately $400 billion in 2025 as firms seek alternatives to Nvidia Corp hardware.
