What happened: Marvell Technology (MRVL) stock jumped about 8% on Tuesday, hitting its highest level since June.
What’s behind this move: The semiconductor designer raised its revenue forecast for fiscal 2028, beating the average analyst estimate.
“We expect total company revenue to be approximately $20 billion in FY28, representing approximately 67% year-over-year growth,” CEO Matt Murphy said Tuesday at the company’s investor day conference.
Marvell had targeted $18 billion in August, while Wall Street forecast $18.2 billion for the period, according to Bloomberg data.
The company estimates that the total addressable AI market is expected to reach approximately $400 billion by 2030, driven by custom silicon programs with hyperscalers such as Amazon (AMZN), Google (GOOG, GOOGL), and Microsoft (MSFT).
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287.01 +15.76 (+5.81%)
Closing: October 6 at 4:00:01 p.m. EDT
What else do you need to know: Semiconductor stocks have been at the center of artificial intelligence trading this year, pushing broader markets to all-time highs.
Marvell, which competes with Broadcom (AVGO), designs high-speed infrastructure and custom chips that allow AI computers to communicate with each other.
Earlier this year, Marvell stock rebounded sharply after AI chip heavyweight Nvidia’s (NVDA) CEO Jensen Huang described the chip designer as “the next trillion-dollar company.”
The company joined the S&P 500 Index (^GSPC) in June. Marvell shares are up more than 240% year to date.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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