Marvell Technology Bets Big on AI as Data Center Drives Turnaround

Marvell Technology (NASDAQ: MRVL) is set for significant growth, powered by soaring demand for artificial intelligence (AI). The U.S. chipmaker reported a +5% year-on-year increase in revenue for its fiscal 2025 earnings, reversing a -7% decline in 2024. This recovery was largely driven by an +88% surge in its Data Center division, offsetting steep declines across other segments.

Looking ahead, analysts expect Marvell’s non-AI segments — including Enterprise Networking, Carrier Infrastructure, Auto/Industrial, and Consumer — to start recovering from the first quarter of 2026. Overall revenue is projected to climb +44% in 2026 to $8.3 billion, supported by a rebound across all divisions.

However, the Data Center business remains central to Marvell’s growth trajectory. To sharpen its focus on AI, Marvell is undertaking a $750 million restructuring to redirect research and development spending toward its Data Center business, while scaling back investments in other areas. The segment, which contributed 35% of total revenue in 2021, is expected to account for 78% by 2027, highlighting AI’s growing influence on Marvell’s future.