MRVL's Data Center Switching Business Expands: New Growth Engine?

Marvell Technology’s MRVL data center switching business is one of the fastest-growing contributors within its data center portfolio. The company expects data center switch revenues to exceed $300 million in fiscal 2026 and $500 million in fiscal 2027. On its third-quarter fiscal 2026 earnings call, MRVL increased its data center growth projection for the rest of fiscal 2026, citing increased traction in its switching products.

Marvell Technology expects sustained demand for its 12.8T switch platforms as customers plan to use these for several more years in their scale-out networks. MRVL has also begun shipping next-generation 51.2T products, with a strong ramp expected in 2026. MRVL expects to introduce 100T switching products in 2026.

As data center switches are the core building block of the AI rack, enabling integration with interconnect, XPU attach, storage, and scale-up architectures, the company’s focus is on bringing out its 100T switches soon. MRVL’s 100T switch will come with high radix, supporting up to 576 ports, low power SerDes and high execution speed.

Marvell Technology is aligning itself with industry scale-up standards like UALink and ESUN. Sampling of 115T and 57T UALink solutions is planned for the second half of fiscal 2027, with volume production expected in fiscal 2028. In parallel, Marvell Technology is collaborating closely with customers on ESUN-based scale-up solutions, ensuring coverage across both ecosystems

How Competitors Fare Against MRVL

Marvell Technology competes with Broadcom AVGO and Cisco CSCO in the switching space. Broadcom’s PCIe Gen 6 switch and retimer are integrated in the AI rack solutions used by the world’s biggest hyperscalers, original design manufacturers and original equipment manufacturers. Cisco provides switching solutions under its campus networking portfolio.

Broadcom’s PCIe switch and retimer use these enterprises to simplify interoperability by leveraging Broadcom’s advanced telemetry and diagnostics. Cisco stands to gain from the start of a multi-year, multibillion-dollar refresh opportunity for its newest generation of switching products as the support for its 4000 and 6000 series switches ends.

MRVL's Price Performance, Valuation and Estimates

Shares of Marvell Technology have surged 11.6% in the past six months compared with the Zacks Electronics - Semiconductors industry’s appreciation of 21.8%.

MRVL 6-Month Performance Chart

From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 6.86, lower than the industry’s average of 8.40.

MRVL Forward 12-Month (P/S) Valuation Chart

The Zacks Consensus Estimate for MRVL’s fiscal 2026 and 2027 earnings implies year-over-year growth of 80.9% and 26.2%, respectively. The estimate for fiscal 2026 has been revised upward in the past 60 days, while the estimate for fiscal 2027 has been revised upward in the past 30 days.

Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research