technologyScore 85/100Research
Marvell sharply raises scale-up optics outlook (NPO/CPO); hyperscalers planning scale-up optical deployments starting next year
Matt Murphy· Marvell Technology· AI· —· pub 2026-08-28· about Marvell Technology (Celestial AI/Celestica photonic fabric partnership) (MRVL)
“Our fiscal 2028 revenue outlook for scale-up optics has increased meaningfully compared to prior expectations, positioning Marvell to be one of the largest enabler of NPO in AI infrastructure... customers are aggressively planning scale-up optics deployments starting as early as next year.”
Why it matters
Scale-up optics was framed at ~$300M for next year (including ~$150M Celestial AI CPO photonic fabric) last quarter, and is now accelerating — a major driver of the $1.5B FY28 revenue raise. This signals the copper-to-optics transition in scale-up networks is arriving faster than expected, opening a new TAM beyond scale-out.
Investment implication
Bullish for optical interconnect supply chain (TIA/drivers, silicon photonics, NPO/CPO module makers like Celestica and co-packaged optics players) as scale-up architectures move from copper to optics; bearish read-through for pure copper interconnect incumbents over the medium term.