Marvell Technology (MRVL) Investor Update summary

Market opportunity and growth drivers

• Data center CapEx is forecasted to exceed $1 trillion by 2028, with $500 billion allocated to semiconductors and $350 billion to accelerated computing, highlighting a massive and rapidly expanding market.

• Marvell's data center TAM is revised upward to $94 billion by 2028, growing at a 35% CAGR, with custom compute and interconnect segments expanding rapidly.

• Custom silicon, especially for AI and cloud, is a primary growth engine, with custom silicon on track for 25% share of the accelerated compute market by 2028.

• Custom compute, including XPUs and XPU attach, is the fastest-growing segment, with XPU attach projected to nearly double annually and a 90% CAGR through 2028.

• Marvell has secured 18 sockets (5 XPU, 13 XPU attach) and is tracking over 50 additional custom silicon opportunities, representing $75 billion in potential lifetime revenue.

Technology leadership and innovation

• Marvell has established a full-service, end-to-end custom silicon platform, integrating system architecture, design IP, advanced packaging, and manufacturing/logistics.

• The company leads in advanced process nodes (down to 2nm), with industry-first 2nm custom SRAM, and a broad analog mixed signal IP portfolio, including industry-first 448 Gbps SerDes and IEEE-recognized 224Gbps SerDes.

• Innovations in custom SRAM deliver 17x bandwidth and 66% lower standby power, while custom HBM unlocks 1.7x more compute area and 75% lower memory I/O power compared to standard solutions.

• Advanced packaging capabilities span 2D to 4.5D, integrating optics and copper, enabling up to 16x scaling and supporting heterogeneous integration for trillion-plus transistor systems.

• Co-packaged optics and silicon photonics are key differentiators, with Marvell shipping multiple generations of high-speed optical products and enabling next-gen AI scale-up systems.

Customer engagement and execution

• Marvell's engagement model is based on early, deep collaboration, investing in IP years ahead of customer needs and supporting multi-generational, concurrent design cycles.

• The company provides unique value through system-level optimization, custom IP, packaging flexibility, and manufacturing scale, enabling faster time to market and improved TCO for customers.

• Design wins span all top four hyperscalers and emerging hyperscalers, with multi-generational programs and a pipeline of over 50 opportunities.

• NRE (non-recurring engineering) is co-invested with customers, recognized as OpEx reduction, and supports operating leverage as the business scales.

• Capacity planning is robust, with long-term supply chain contracts and partnerships ensuring readiness for future ramps, and operations engineering ensures volume delivery and reliability.