bottleneckScore 55/100Add to thesis
Marvell's interconnect business growth accelerating to >70% YoY in FY2027, driven by 1.6T PAM4 ramp and emerging scale-up optics
Matt Murphy· Marvell Technology· AI· 2026-05-27· about Marvell Technology (MRVL)
“We expect our interconnect business to grow more than 70% year over year, well above our prior expectation of 50% growth... We expect 1.6T revenue to take another substantial step up in fiscal 28.”
Why it matters
The acceleration of interconnect growth from 50% to >70% YoY signals that networking bandwidth is becoming the critical bottleneck in AI data centers, not compute. This is a major strategic shift requiring optical and high-speed SerDes components at scale.
Investment implication
Suppliers of high-speed DSPs, TIAs, drivers, and plasmonic silicon photonics components see accelerating demand. Marvell's acquisition of Polariton and emphasis on 1+ THz modulators indicates competitors must invest heavily in photonics to compete. TSMC advanced nodes for DSPs, and optical component makers (modulators, lasers) face supply pressure.