Marvell custom XPU business (currently ~25% of data center) expected to DOUBLE from FY2027 to FY2028 on back of new hyperscaler XPU socket + 15+ XPU-attach design wins; at least 20% growth FY2027 baseline
“We expect custom business roughly a quarter of our overall data center revenue to grow by at least 20% next year... As we look beyond fiscal 27, we have several high volume custom designs in development with meaningful revenue expected from these programs in fiscal 2028... with all this goodness from XPU attach plus new a new meaningful XPU socket ramping and the other programs continuing we see the custom business actually in fiscal 28 uh doubling off of 27.”
Why it matters
Marvell has secured 15+ XPU-attach wins and multiple new XPU sockets across hyperscalers. The emergence of XPU-attached I/O chiplets (custom foundational nics, CXL memory expansion) is creating a new revenue stream for Marvell's high-speed interconnect IP. This signals hyperscalers are standardizing on best-of-breed IP blocks rather than monolithic designs, creating sustained demand for networking chiplets embedded in custom packages.
Investment implication
Custom silicon suppliers and advanced packaging/integration partners will see sustained demand. Marvell's ability to embed networking IP into hyperscaler XPUs and attach devices indicates they are becoming an indispensable provider of I/O and memory-bandwidth solutions. This reduces risk of commoditization and locks in multi-year program revenue tied to major cloud capex cycles.