Can MRVL's Data Center Business Sustain Its Growth in 2027?

Marvell Technology MRVL is increasingly becoming a data center-focused semiconductor company, with artificial intelligence (AI) infrastructure driving demand across custom silicon, optical interconnects and switching. The data center end market accounted for 74% of Marvell Technology's fiscal 2026 revenues, up from its historical positioning across a broader range of markets. The momentum accelerated in the second quarter of fiscal 2027. Data center revenues reached a record $2.17 billion, which increased 46% year over year and 18% sequentially, and accounted for 79% of total company revenues. Growth was broad-based across optical interconnect, switching and custom products as hyperscalers continued expanding AI infrastructure.