Marvell Technology's AI Chip Sales Projected to Double to $4 Billion in 2025

Marvell Technology's AI chip sales are projected to double to $4 billion next year, according to JPMorgan analyst Harlan Sur. The company's AI-related business is expected to accelerate in 2026 due to progress on Trainium 3 at Amazon Web Services and the MAIA Gen 3 program at Microsoft. Sur also noted that Marvell has secured multiple 2nm design wins for future products. The analyst expects Marvell to report July-quarter revenue of about $2.05 billion, driven by strong AI chip and optical DSP demand.

Marvell Technology Inc. (NASDAQ: MRVL) is poised for significant growth in its AI chip sales, with JPMorgan analyst Harlan Sur projecting a doubling of revenue to $4 billion in 2025. This projection is driven by robust demand for AI chips and optical digital signal processors (DSPs), as well as the company's strategic partnerships with major technology firms.

According to Sur, Marvell's AI-related business is expected to accelerate in 2026, primarily due to progress on Trainium 3 at Amazon Web Services (AWS) and the MAIA Gen 3 program at Microsoft. Trainium 3, which operates on a 3nm process, is on track for a high-volume ramp in 2026, while the MAIA Gen 3 program, utilizing 2nm/3nm chiplets, is slated for production in 2027-2028. Additionally, Marvell has secured multiple 2nm design wins for future products, further solidifying its position in the AI infrastructure market.

The analyst expects Marvell to report July-quarter revenue of about $2.05 billion, driven by strong demand for AI chips and optical DSPs. This revenue projection is in line with the company's Q2 outlook of ~$2.05 billion, which reflects the ramp-up of Amazon Trainium 2 production. Marvell's Q3 revenue outlook is projected at around $2.1 billion, with the automotive Ethernet business sale expected to result in a $0.02-$0.03 EPS hit per quarter in the near term. However, this transaction is anticipated to be accretive to earnings by $0.05-$0.10 per share, assuming the proceeds are used for share buybacks.

In the optical networking segment, Marvell is seeing strong demand for 800G PAM4 optical DSP orders and shipments, particularly for Nvidia's H200 and GB200 GPUs and Alphabet's TPU infrastructure. This demand is expected to continue to drive growth for the company.

Overall, Sur reaffirms a positive long-term outlook for Marvell, noting that the company is well-positioned to capitalize on the hyperscale capex boom and AI-driven infrastructure investments. Marvell's strategic focus on infrastructure over GPU competition has positioned it as undervalued relative to peers like Nvidia and AMD. The company's robust R&D spending (30.48% of revenue in 2025) and strategic partnerships with hyperscalers further support its long-term growth potential.

Investors will closely watch Marvell's earnings reports to gauge the sustainability of its growth trajectory. The company's ability to scale production, innovate rapidly, and capture market share in data centers and cloud computing positions it as a critical player in the AI revolution.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/08/47315657/marvell-set-to-double-ai-chip-sales-to-4-billion-next-year-analyst-projects
[2] https://www.ainvest.com/news/chip-stocks-nvidia-marvell-wall-street-bullish-q2-earnings-2508/