RBC Capital Markets has issued a bullish call on Marvell Technology, arguing the chipmaker can sustain revenue growth of more than 40% annually for the next three years. The investment bank points to Amazon Web Services as a key anchor for Marvell's custom chip business, along with robust demand for optical networking gear that extends into 2027.
Why Marvell's Growth Story Is Different
Marvell is best known for making the networking chips and optical components that move data inside data centers. While much of the AI hype has centered on the powerful GPUs that train and run AI models, RBC notes that the real bottleneck is shifting to the "plumbing" — the infrastructure that connects those chips and shuttles data between servers.
As AI workloads grow, data centers need faster, more efficient ways to move data. Marvell's products, which include networking silicon and optical transceivers that convert electrical signals into light for high-speed transmission, are critical to solving that problem. RBC estimates Marvell's data center business could grow more than 50% this year and next.
AWS as an Anchor
A key part of the thesis is Marvell's relationship with Amazon Web Services. AWS is using Marvell's custom XPU chips — specialized processors designed for specific cloud workloads — to power its infrastructure. RBC sees this as a stable, long-term revenue stream that gives Marvell a foundation for sustained growth.
Custom chips are becoming a bigger part of the cloud computing landscape as companies like Amazon, Google, and Microsoft design their own silicon to optimize performance and cost. Marvell's ability to win and hold a major customer like AWS is a strong signal that its technology is competitive.
Optical Demand Visible Through 2027
Beyond custom chips, RBC highlights Marvell's optical business as a growth driver. Optical components are essential for connecting servers across data centers, and demand for higher-speed links is rising as AI models grow larger and more complex. The bank says visibility into optical demand extends through 2027, giving investors confidence in the company's medium-term outlook.
Optical networking is a specialized area where Marvell has a strong position. The company's products are used in the high-speed interconnects that link GPUs and other accelerators, making them a key part of the AI infrastructure buildout.
What It Means for Investors
For everyday investors, the RBC call underscores a broader theme: the AI boom is not just about the companies that design the most powerful chips. It also benefits the companies that build the infrastructure to connect them. Marvell sits at the intersection of AI and networking, and RBC's analysis suggests that demand for its products will remain strong even as the AI market matures.
Investors should note that Marvell's growth is not guaranteed. The company faces competition from other networking chipmakers and from in-house solutions developed by cloud giants. But RBC's confidence in the three-year outlook, backed by visible demand from AWS and optical customers, provides a clear narrative for why Marvell could continue to outperform.
As always, no single analyst call should drive an investment decision. But for those looking to understand the AI supply chain beyond the headline names, Marvell's role in data center networking is worth watching.
