Marvell Investor Day to Unveil FY29 Growth Path and Margin Targets

Marvell Technology (MRVL.US) will host its 2026 Investor Day in New York on October 6, with a focus on what lies beyond the strong growth expected in FY27 and FY28. The company has already raised FY27 revenue estimates to about $12 billion and FY28 revenue to around $18 billion, with data center growth projected to exceed 60% and custom silicon revenue set to more than double.

The event could shed light on the expanded deal with Alphabet (GOOG.US), particularly how it impacts FY29 revenue. The agreement covers custom silicon for AI inference accelerators, NICs, storage controllers, and more. The warrant includes up to 58.97 million Marvell shares at a $206.58 exercise price, with shares vesting in tranches based on revenue targets. Management has hinted at significant upside for FY29 custom revenue, with RBC expecting a potential $2 billion increase in AI revenue outlook.

Beyond custom silicon, connectivity could be a major focus. Marvell's scale-up optics framework for FY28 has increased materially, with a significant contribution from Celestial AI's CPO Photonic Fabric. Investor Day may provide a detailed revenue roadmap across various technologies, including UALink, ESUN, and NVIDIA's (NVDA.US) NVLink Fusion.

Memory expansion through CXL and memory infrastructure could also be a key topic. Marvell's technology is already deployed at multiple hyperscalers, and the company promises a comprehensive update at the event. Investors will watch for indications of whether CXL and memory infrastructure could become another billion-dollar XPU-attach category.

Margins will be another critical area of discussion. Marvell targets a long-term Non-GAAP operating margin of 38% to 40%, expecting to reach the upper end by FY28. CFO Dan Durn has indicated that the company plans to reset its long-term financial model at Investor Day, which could significantly impact future EPS estimates.