Marvell Technology Inc. (NASDAQ:MRVL) delivered the long-range reset Jim Cramer had been expecting at its Tuesday Investor Day event. The custom AI chip company guided to fiscal 2031 revenue of $70 billion to $90 billion, well above Wall Street’s models, and investors responded immediately.
- MRVL stock is climbing. See the real-time price action here.
Cramer saw the event as bigger than Marvell alone,”with big reverberations through the hyperscaler and chip worlds. CEO Matt Murphy has built a genuine powerhouse. We’ll be looking for readthroughs to our position in Broadcom,” he wrote in a morning note.
A $400 Billion Market
Murphy told investors Marvell expects its total addressable market to reach $400 billion by 2030, CNBC reported, and pushed its fiscal 2028 revenue target to about $20 billion.
Before the event, analysts expected revenue of $12.05 billion for fiscal 2027 and $18.2 billion for fiscal 2028, and the new target sits about 10% above consensus. It also tops the roughly $18 billion outlook management gave in August.
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The Broadcom Angle
Cramer’s Investing Club owns Broadcom Inc. (NASDAQ:AVGO), not Marvell. Over the weekend, Cramer called Marvell “a direct competitor to Broadcom in the custom semiconductor space” and said its comments on Tuesday “figures to influence trading in many other AI stocks.”
Both companies design custom chips for cloud giants building their own AI hardware. A forecast this large from Marvell, the smaller rival, points to years of custom-silicon spending ahead.
Marvell Went Into Investor Day On a Hot Streak
As of early October, Marvell shares soared more than 240% over 12 months, compared with 6.6% for Broadcom, according to Benzinga Pro data.
Broadcom entered October well below its late-spring peak. The stock closed Monday at $362.51, about 25% under its June 2 record close of $481.57.
Buyers had started to come back before the Marvell event, though. Shares rose about 7% from a mid-September closing low of $339.27, including a 5.5% gain over the two sessions before Investor Day.
Both stocks were higher Tuesday morning. Marvell rose 7.4% to $291.39 by about 10:50 a.m. ET, and Broadcom gained 3.3% to $374.46, according to Benzinga Pro. Marvell is still below its 52-week high of $329.88.
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