Marvell Technology (NASDAQ: MRVL) authorized a new $5 billion stock repurchase program and launched a $1 billion accelerated share repurchase (ASR) agreement with a major financial institution. The announcement comes in addition to $300 million in stock already repurchased during the current quarter. The company said the buyback reflects confidence in its long-term growth prospects, particularly in AI-driven data infrastructure markets.
“The ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth,” said Matt Murphy, Chairman and CEO of Marvell. “Our strong balance sheet provides us the flexibility to continue investing in long-term growth, particularly as we pursue the large and expanding opportunity in accelerated infrastructure for AI.”
Separately, Murphy spoke at JP Morgan’s CEO Conference Call Series, outlining Marvell’s growth trajectory across data center, AI silicon, optics, storage, and switching businesses. He emphasized that the company expects continued momentum in 2026, with acceleration in 2027–2028 as new programs and technologies ramp.
Key Points from CEO Matt Murphy at JP Morgan Conference:
- Marvell expects substantial growth in data center, AI silicon, and optics.
- Partnership with AWS on custom AI silicon remains intact with no revenue gaps expected.
- Data center revenue has tripled since 2023; AI segment has expanded more than sixfold over the same period.
- Custom silicon business roughly doubled year-over-year, reaching ~$1.5B in 2025.
- Optics now generates about 50% of data center revenue.
- Switching revenue has more than doubled since the 2021 Inovium acquisition, with 51.2T products entering production.
- Storage is recovering to ~$200M per quarter, with potential upside from AI-driven demand.
- Communications and enterprise business is expected to grow 30% sequentially and continue with double-digit gains in 2026.
- 2nm and next-generation silicon programs are in development, with strong multi-year visibility.
- More than 20 active custom XPU and XPU-attached design wins closed since June 2025, representing 10% of a $75B pipeline.
- Data center CapEx growth projected at ~18% in 2026, with Marvell expecting above-market performance.
- Growth expected to accelerate further in 2027 and 2028 with 1.6T optics, 800G ZR, and new XPU ramps.
