Data CenterNarrow moat

Marvell Technology (MRVL) — moat facet

From 40% of the company to 79% in under three years, on custom chips and optics for AI.

Data center is Marvell's main business. It brought in $6,100.3 million in fiscal 2026, 74% of revenue, from $2,216.7 million two years earlier.1

Data center revenue growth (%)+87.9%FY2025+46.5%FY2026+46%Q2 FY2027, year on year+18%Q2 FY2027, on Q1Marvell Form 10-K FY2026 and Q2 FY2027 release
Growth halved from fiscal 2025 to 2026 and has held near 46% since.

The end market covers the chips inside cloud and on-premise AI systems, switches, servers and storage, and the electro-optics that connect data centres to each other.2 The 10-K credits the fiscal 2026 growth to AI-related demand for Marvell's custom products and its electro-optics portfolio.3

It grew very fast in two steps. Revenue rose about 88% in fiscal 2025, to $4,164.2 million, and about 46% in fiscal 2026.45 In three years the end market went from less than half of Marvell to three-quarters of it.

The latest quarters have accelerated again. Data center revenue was $1,490.5 million in the June 2025 quarter, $1,832.7 million in the March 2026 quarter and $2,171.5 million in the June 2026 quarter, up 46% on the year and 18% on the quarter.67 Management expects the custom business to accelerate significantly from the second half of fiscal 2027.8

The growth has been bought partly with concentration. One distributor, which Marvell does not name, took 44% of revenue in the June quarter, and one direct customer 16%.9 Marvell also paid $3.5 billion in total consideration for Celestial AI in February 2026, to add photonic interconnect for scale-up networks.10

Marvell reports no profit for the end market; the company's GAAP gross margin was 53.1% in the June quarter.11

The verdict is that this end market is now Marvell, and its growth rate is the company's. The measure is sequential growth: 18% in the June quarter, and a quarter near zero before the custom ramp arrives would mean the second half is later than promised.

Moat trajectory: Widening

Revenue up 46% on the year and 18% on the quarter to $2,171.5M.

The number that tests this moat
Reported
Data center sequential growth, June 2026 quarter
+18% in Q2 fiscal 2027 ($2,171.5M)

A quarter near zero before the promised custom ramp would mean the second half is later than guided.

Source: Marvell Q2 fiscal 2027 results release ↗
References
  1. ReportedIt brought in $6,100.3 million in fiscal 2026, 74% of revenue, from $2,216.7 million two years earlier.
    Marvell Form 10-K FY2026 - net revenue by end market FY2024-FY2026 (data center $2,216.7M/$4,164.2M/$6,100.3M; communications and other $3,291.0M/$1,603.1M/$2,094.3M); fiscal 2026 growth from AI-related demand for custom products and electro-optics, communications and other up 31% net of the automotive Ethernet divestiture; sale of the automotive Ethernet business to Infineon for $2.5B on 14 August 2025; one reportable segment — FY2024-FY2026 · publ. 11 March 2026 · source ↗
  2. ReportedThe end market covers the chips inside cloud and on-premise AI systems, switches, servers and storage, and the electro-optics that connect data centres to each other.
    Marvell Q2 fiscal 2027 results release - revenue by end market for Q2 FY2027, Q1 FY2027 and Q2 FY2026 (data center $2,171.5M/$1,832.7M/$1,490.5M; communications and other $567.8M/$585.1M/$515.6M; shares 79%/76%/74%); end-market product lists; GAAP gross margin 53.1%; Q3 guidance $3.150B; custom business to accelerate from the second half of fiscal 2027 — Q2 FY2027 · publ. 27 August 2026 · source ↗
  3. ReportedThe 10-K credits the fiscal 2026 growth to AI-related demand for Marvell's custom products and its electro-optics portfolio.
    Marvell Form 10-K FY2026 - net revenue by end market FY2024-FY2026 (data center $2,216.7M/$4,164.2M/$6,100.3M; communications and other $3,291.0M/$1,603.1M/$2,094.3M); fiscal 2026 growth from AI-related demand for custom products and electro-optics, communications and other up 31% net of the automotive Ethernet divestiture; sale of the automotive Ethernet business to Infineon for $2.5B on 14 August 2025; one reportable segment — FY2024-FY2026 · publ. 11 March 2026 · source ↗
  4. ReportedRevenue rose about 88% in fiscal 2025, to $4,164.2 million, and about 46% in fiscal 2026.
    Marvell Form 10-K FY2026 - net revenue by end market FY2024-FY2026 (data center $2,216.7M/$4,164.2M/$6,100.3M; communications and other $3,291.0M/$1,603.1M/$2,094.3M); fiscal 2026 growth from AI-related demand for custom products and electro-optics, communications and other up 31% net of the automotive Ethernet divestiture; sale of the automotive Ethernet business to Infineon for $2.5B on 14 August 2025; one reportable segment — FY2024-FY2026 · publ. 11 March 2026 · source ↗
  5. Moat Explorer calcRevenue rose about 88% in fiscal 2025, to $4,164.2 million, and about 46% in fiscal 2026.
    Moat Explorer calculation from Marvell's FY2026 10-K and Q2 FY2027 release: growth rates and averages by end market — FY2024 to Q2 FY2027 · publ. 2026-09-23 · source ↗
  6. ReportedData center revenue was $1,490.5 million in the June 2025 quarter, $1,832.7 million in the March 2026 quarter and $2,171.5 million in the June 2026 quarter, up 46% on the year and 18% on the quarter.
    Marvell Q2 fiscal 2027 results release - revenue by end market for Q2 FY2027, Q1 FY2027 and Q2 FY2026 (data center $2,171.5M/$1,832.7M/$1,490.5M; communications and other $567.8M/$585.1M/$515.6M; shares 79%/76%/74%); end-market product lists; GAAP gross margin 53.1%; Q3 guidance $3.150B; custom business to accelerate from the second half of fiscal 2027 — Q2 FY2027 · publ. 27 August 2026 · source ↗
  7. Moat Explorer calcData center revenue was $1,490.5 million in the June 2025 quarter, $1,832.7 million in the March 2026 quarter and $2,171.5 million in the June 2026 quarter, up 46% on the year and 18% on the quarter.
    Moat Explorer calculation from Marvell's FY2026 10-K and Q2 FY2027 release: growth rates and averages by end market — FY2024 to Q2 FY2027 · publ. 2026-09-23 · source ↗
  8. ReportedManagement expects the custom business to accelerate significantly from the second half of fiscal 2027.
    Marvell Q2 fiscal 2027 results release - revenue by end market for Q2 FY2027, Q1 FY2027 and Q2 FY2026 (data center $2,171.5M/$1,832.7M/$1,490.5M; communications and other $567.8M/$585.1M/$515.6M; shares 79%/76%/74%); end-market product lists; GAAP gross margin 53.1%; Q3 guidance $3.150B; custom business to accelerate from the second half of fiscal 2027 — Q2 FY2027 · publ. 27 August 2026 · source ↗
  9. ReportedOne distributor, which Marvell does not name, took 44% of revenue in the June quarter, and one direct customer 16%.
    Marvell Form 10-Q, quarter ended 1 August 2026 - Distributor A 44% and Customer A 16% of Q2 revenue; Celestial AI acquired 2 February 2026 for total consideration of $3.5B — Q2 FY2027 · publ. 28 August 2026 · source ↗
  10. ReportedMarvell also paid $3.5 billion in total consideration for Celestial AI in February 2026, to add photonic interconnect for scale-up networks.
    Marvell Form 10-Q, quarter ended 1 August 2026 - Distributor A 44% and Customer A 16% of Q2 revenue; Celestial AI acquired 2 February 2026 for total consideration of $3.5B — Q2 FY2027 · publ. 28 August 2026 · source ↗
  11. ReportedMarvell reports no profit for the end market; the company's GAAP gross margin was 53.1% in the June quarter.
    Marvell Q2 fiscal 2027 results release - revenue by end market for Q2 FY2027, Q1 FY2027 and Q2 FY2026 (data center $2,171.5M/$1,832.7M/$1,490.5M; communications and other $567.8M/$585.1M/$515.6M; shares 79%/76%/74%); end-market product lists; GAAP gross margin 53.1%; Q3 guidance $3.150B; custom business to accelerate from the second half of fiscal 2027 — Q2 FY2027 · publ. 27 August 2026 · source ↗
Sources
Generated September 23, 2026