Bank of America analyst Vivek Arya believes Marvell Technology could generate up to $30 billion in revenue by the end of the decade from components complementing its custom data-center chips.
Arya maintained a buy rating on Marvell Technology (MRVL) shares, signaling strong confidence in the company’s long-term growth trajectory within the data center market.
Marvell refers to its custom chips as XPUs, and the supporting components that enable their operation in data centers are grouped under what the company calls the XPU attach segment.
The XPU attach segment includes networking controllers and storage controllers, which work alongside the primary custom chips to keep large-scale data center operations running efficiently.
Arya describes this segment as significantly more resilient than the XPUs themselves, noting that customers are far more likely to return to these auxiliary products and continue relying on them over time.
The analyst suggests that each custom chip may have one or more sockets for connecting additional components, creating a naturally recurring and expanding revenue stream for Marvell.
If the average price of each component falls between $500 and $1,500, Marvell’s XPU attach revenue could realistically reach $30 billion by the close of the decade.
Arya estimates the total addressable market for custom computing solutions, encompassing both chips and auxiliary components, at approximately $300 billion by the end of the decade.
Beyond the XPU attach opportunity, Arya believes Marvell (MRVL) has a strong chance to capture meaningful share in the scale-up optical networking market through its broad portfolio of relevant products.
That portfolio includes co-packaged optics, near-package optics, and related optical components, all of which are used to connect multiple processors so they function together as a single, more powerful computing system.
Arya also addressed a potential competitive concern, noting that Marvell sees no threat to its optical business from Amazon’s recent announcement of cooperation with Qualcomm on optical interconnect components.
The combination of a resilient attach business, a massive addressable market, and a defensible optical networking position makes Marvell one of the more compelling long-term stories in semiconductor infrastructure today.
