Marvell Technology, Inc. announced on March 12, 2026 that it has expanded its 1.6‑terabit per lane optical digital‑signal‑processor (DSP) platform portfolio, adding new 5‑nanometer and 3‑nanometer variants to its existing line. The expansion builds on the company’s first 200‑gig‑per‑lane 1.6‑terabit DSPs introduced in 2023 and positions Marvell to support the next generation of AI data‑center interconnects that demand higher bandwidth and lower latency.
The new DSPs enable 1.6‑terabit per lane data rates, a critical step for hyperscale data centers that are scaling AI workloads. Sampling of the new chips is expected to begin in the first quarter of 2026, and the announcement underscores Marvell’s strategy to capture a larger share of the growing data‑center market by 2028 through advanced interconnect solutions.
Marvell’s Q4 FY2026 results provide context for the product launch. Revenue reached $2.219 billion, up 22% year‑over‑year, and earnings per share were $0.80 versus a consensus estimate of $0.79. The company also reported record fiscal 2026 revenue of $8.195 billion, a 42% increase from the prior year, and a non‑GAAP operating margin of 35.7% compared with 33.7% in the prior period.
Segment data show that data‑center revenue was $1.7 billion, representing 74% of total revenue, while communications and other revenue totaled $567.4 million. The strong data‑center performance is driven by robust AI demand and the company’s expanding portfolio of high‑bandwidth interconnect solutions.
Management guidance for the next fiscal year signals confidence in continued growth. Q1 FY2027 revenue is guided at $2.4 billion +/- 5%, well above the consensus estimate of $2.28 billion. Matt Murphy, Marvell’s Chairman and CEO, said, "We expect year‑over‑year revenue growth to accelerate each quarter in fiscal 2027, driven by continued strength in our data center business, with bookings continuing to grow at a record pace."
The market reaction to the announcement was positive, driven by the raised Q1 FY2027 guidance and the accelerating growth outlook. Marvell’s custom silicon and optical interconnect capabilities are highlighted as key strengths. Xi Wang, Senior Vice President and General Manager of Marvell’s Connectivity Business Unit, added, "We are now extending that multi‑generational product leadership into the 1.6T era." Vladimir Kozlov, Founder and CEO at LightCounting, noted, "The performance of today's data centers—powered by hundreds of thousands of GPUs, XPUs and other advanced compute engines—depends on the interconnect technologies that link them together. Marvell DSP products are essential to many high‑speed links in modern data center infrastructure, enabling compute resources to operate at peak performance and efficiency. The company's expanded 1.6T DSP portfolio ensures that data centers can fully maximize their compute investments well into the future."
The expanded DSP portfolio strengthens Marvell’s competitive position against rivals such as Broadcom and Nvidia and is expected to drive additional revenue from hyperscalers and other large cloud operators, reinforcing the company’s momentum in the high‑bandwidth networking segment.
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