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Marvell Technology develops essential semiconductors for AI clusters and data centers, focusing on custom ASICs and network technologies. Custom ASICs are projected to generate $1.8 billion in revenue by 2026, doubling in 2027, as major cloud companies increasingly adopt them for specific applications.

Marvell's portfolio also includes optical interconnects, which improve data transfer efficiency within data centers. Analysts estimate this segment could contribute up to $3 billion in revenue, driven by growing demand for connectivity as AI infrastructure scales.

Despite its strong market position, Marvell is undervalued compared to peers like Broadcom and AMD, attributed to uncertainties around customer contracts and production timing. The company anticipates annual revenue growth of 25% to 40% for its data center operations by 2028, backed by a recent share buyback program. Marvell is well-placed to benefit from the ongoing growth in AI infrastructure.