Marvell targets $30B opportunity in optical networking as AI data centers reshape chip demand

Marvell Technology is best known for designing custom chips, the kind of bespoke silicon that powers everything from cloud infrastructure to enterprise storage. But a KeyBanc analyst just made a compelling case that the real prize isn’t the chips themselves. It’s the connective tissue between them. Analyst John Vinh identified a $30 billion total addressable market in scale-up networking by 2030, split roughly between $20 billion in optical technologies and $10 billion in switching capabilities. He raised Marvell’s price target by 48% to $385, a vote of confidence that sent a clear signal: optical networking isn’t a side hustle for Marvell anymore, it’s potentially the main event. The numbers behind the networking bet Marvell’s financial trajectory has shifted dramatically. The company now targets approximately $12 billion in revenue for fiscal year 2027 and $18 billion for fiscal year 2028. Combined, that’s roughly $30 billion across two fiscal years, up from previous guidance of about $20 billion. The data center interconnect segment is doing much of the heavy lifting, with expected year-over-year growth exceeding 70% in FY2027. The driver is straightforward: as AI accelerators g...