CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
MRVL hosted its Accelerated Infrastructure for the AI Era event where it highlighted an objective to double its market share by 2028 (10% in 2023), led by share gain in the custom compute and switching markets, which we think has the potential to grow MRVL’s revenue by at least 3x-4x in five years. MRVL estimates that its TAM will rise at a 29% CAGR through CY 28 to $75B (estimated $21B in 2023), with accelerated custom compute at a 45%+ CAGR and switching at 15%+. On the connectivity side, AI workloads are demanding a doubling of interconnect speed every two years, or half the time to pre-ChatGPT (2x every four years). On the compute side, we see design wins from existing/new hyperscale customers and greater momentum for next gen nodes aiding demand. MRVL sees AI-related revenue growing to at least $1.5B in FY 25 (2/3 connectivity, 1/3 custom compute) and $2.5B by FY 26, which compares to $550M in FY 24 (all optics driven). This equates to AI revenue growing to over 35% of revenue by FY 26 (10% in FY 24).