Marvell's Data-Center Surge: 51.2T Switch XPU Wins

Introduction

Marvell Technology (NASDAQ: MRVL) delivered a clear, numbers-driven update that cements its leadership in data-center connectivity and custom silicon. Recent company disclosures show robust data-center revenue, the start of shipments for next-generation 51.2-terabit (51.2T) switches, and purchase orders that cover a major XPU program for the coming fiscal year. Those facts are reshaping investor expectations even as analysts debate the company’s exposure to key hyperscaler programs.

Quarterly Results and Product Momentum

Data-center revenue: scale and growth

Marvell reported $1.52 billion in data-center revenue for the quarter, a 38% year-over-year increase that now represents roughly 73% of total company revenue. That concentration reflects how central high-bandwidth connectivity and custom chips have become to Marvell’s business model. For investors, the takeaway is straightforward: the company’s top-line expansion is being driven by a few high-growth product lines that are enjoying strong demand from hyperscalers and cloud builders.

51.2T switches and optical interconnects

Marvell has begun shipments of its next-generation 51.2T switches, augmenting an existing portfolio that includes 12.8T parts. On the optical side, DSPs, drivers, and transimpedance amplifiers showed double-digit sequential growth. Think of switches as highways for data and optical components as the high-speed rails—both must scale in tandem to support exponential AI traffic. Marvell’s simultaneous advancement on both fronts strengthens its position as a one-stop supplier for hyperscale connectivity needs.

Hyperscaler Engagements and XPU Visibility

Confirmed XPU purchase orders

Management disclosed that purchase orders for a major next-generation XPU engagement with a hyperscaler already cover the full fiscal-year forecast. That kind of order visibility reduces execution risk and gives Marvell a multi-quarter revenue runway. For supply-chain and revenue modeling, confirmed PO coverage is more concrete than guidance tied to volume assumptions.

Guidance and near-term expectations

Marvell expects data-center revenue growth to exceed 25% in the coming fiscal year, driven by expanded adoption across switching, optical interconnects, and custom silicon. Given the current product ramp and booked orders, these projections rest on tangible product shipments rather than theoretical market expansion.

Analyst Responses and Sector Context

Divergent analyst views on AWS exposure

Despite encouraging execution, analysts are split on Marvell’s exposure to Amazon Web Services’ Trainium programs. One firm downgraded MRVL over concerns it may have lost certain Trainium design wins, while another maintained a bullish stance and raised its price target. This divergence highlights how much investor sentiment hinges on a small number of hyperscaler contracts—even when company-level metrics tell a strong growth story.

Broader supply-chain signals: Celestica example

Complementary signals from suppliers like Celestica—whose connectivity and cloud solutions business has surged—reinforce that infrastructure demand is broad-based. Rapid growth among systems and board-level suppliers suggests hyperscalers are investing across multiple layers, which supports sustained demand for Marvell’s chips and optical components.

Implications for MRVL Investors

Facts that matter: accelerating data-center revenue, active shipments of higher-capacity switches, and booked XPU orders give Marvell measurable operational momentum. The principal near-term risk remains contract-level clarity with hyperscalers—an area where public analyst interpretations differ. For investors, this creates a dual narrative: solid execution and visibility on one side, and concentrated customer-risk scrutiny on the other.

Conclusion

Last week’s disclosures make Marvell’s growth thesis more tangible: strong revenue growth, product ramps in both switching and optics, and confirmed hyperscaler orders provide a clearer line of sight to future quarters. While debate over specific hyperscaler program wins persists among analysts, the company’s product execution and order visibility present concrete reasons for investors to reassess MRVL’s positioning within AI and data-center connectivity infrastructure.

Key data points summarized: $1.52B data-center revenue (+38% YoY), 73% of company revenue, shipments of 51.2T switches, confirmed next-gen XPU purchase orders, and expected data-center growth >25% for the next fiscal year.