Buying This Stock Right Now Could Be a Once-in-a-Generation Opportunity

Marvell Technology (NASDAQ: MRVL) is emerging as one of the biggest beneficiaries of a major shift in artificial intelligence infrastructure. Its latest growth projections suggest that the company could be significantly larger in just a few years.

Management recently raised its fiscal 2028 revenue outlook to approximately $20 billion, up from its previous forecast of $18 billion. That's a massive number for a company that generated $8.2 billion in fiscal 2026. Marvell is now also targeting $70 billion to $90 billion in annual revenue by fiscal 2031, with much of that growth expected to come from custom AI chips and data center networking.

The custom chip advantage

Today, companies such as Microsoft, Amazon, and Alphabet's Google rely heavily on Nvidia's graphics processing units (GPUs) to run their AI systems. The tech giants are increasingly developing chips specifically designed for their own workloads. These custom chips, known as application-specific integrated circuits (ASICs), can deliver better efficiency and lower costs for certain AI applications.

Marvell helps develop these chips. It also supplies networking technology that allows thousands of processors to communicate inside enormous AI data centers. Demand is accelerating rapidly. In fact, Marvell's data center business is now the company's largest revenue contributor.

Image source: Getty Images.

A once-in-a-generation opportunity

If Marvell reaches $80 billion in annual revenue by fiscal 2031, the midpoint of management's target, its business would be nearly 10 times larger than it was in fiscal 2026. Management has also projected approximately $30 in adjusted earnings per share by fiscal 2031. Assuming Marvell can deliver those earnings and investors are willing to pay 25 times annual profits (a valuation that could be reasonable for a rapidly growing AI semiconductor company), its stock could reach approximately $750. That's more than triple its recent price of $237.

Of course, there's still some risk. Broadcom (NASDAQ: AVGO) is a powerful competitor you can't ignore, and AI infrastructure spending could slow. But if you're willing to hold for several years and tolerate a bit of volatility, Marvell could indeed prove to be a once-in-a-generation opportunity.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Marvell Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.