technologyScore 85/100Research
Marvell raises FY28 outlook by $1.5B to ~$18B; scale-up optics (NPO/CPO incl. Celestial AI) called the single largest driver of the raise
Matt Murphy· Marvell Technology· AI· —· pub 2026-08-28· about Marvell Technology / Celestial AI (MRVL)
“Probably the most meaningful part of the next year raise is actually from the scale up optics... last quarter... celestial AI CPO photonic fabric solution which was about 150 million for next year... overall scale up optics inclusive of that was about 300 million... all of that together scaleup optics is accelerating even further from the number I gave you last quarter.”
Why it matters
Hyperscalers are moving scale-up (GPU/XPU cluster) interconnects from copper to optics starting next year — earlier and larger than the market expected, with Marvell's scale-up optics FY28 outlook raised 'meaningfully' in one quarter from a ~$300M base.
Investment implication
Signals an acceleration of the copper-to-optics transition in scale-up AI fabrics — bullish for optical component suppliers (Coherent, Lumentum, Fabrinet, Ciena) and photonics ecosystem, and validates Celestial AI's photonic fabric ramp. Bearish read-through for copper interconnect vendors over time.