Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n The good news for Micron<\/a> investors is that memory demand is expected to outstrip supply until the end of the decade. Citrini Research, a firm that provides insights on equity trading and macro trading, predicts that dynamic random-access memory (DRAM) demand could exceed supply by 25% in 2030. Micron stock, therefore, is likely to continue benefiting from an inflated memory pricing environment that could send its stock higher. <\/p>\n However, there is another emerging bottleneck within the AI infrastructure space that could be even bigger than memory chips — optical networking. Marvell Technology (NASDAQ:MRVL) is one of the best ways to capitalize on this boom. Let’s look at the reasons why. <\/p>\n Image source: Getty Images. <\/p>\n Marvell Technology is the dominant player in a fast-growing optical niche <\/p>\n Goldman Sachs estimates that the optical networking market could grow from $15 billion this year to $154 billion in 2028. That’s a massive increase of over 10x in just two years. This stunning growth will be fueled by the need for rapid connectivity within AI data center clusters, creating demand for high-speed optical networks and Ethernet. <\/p>\n Specifically, the data center optical interconnect (DCI) market alone could clock a 48% annual growth rate between 2024 and 2030, according to China Insights Consultancy. The firm estimates that the DCI market size could grow from less than $14 billion in 2024 to over $144 billion in 2030. <\/p>\n Marvell is in a terrific position to capitalize on this market’s growth. It reportedly controls 60% to 65% of the optical digital signal processor space. Not surprisingly, the company is experiencing robust growth in sales of its optical networking products. Marvell noted in May that its data center interconnect business is on track to grow by more than 70% in fiscal 2027, exceeding its original estimate of 50% growth. <\/p>\n Story Continues <\/p>\n The company projects that its DCI module revenue will reach $1 billion in annualized revenue in fiscal 2028, double fiscal 2026 levels. Also, the Ethernet switching business is growing at a solid clip, with revenue expected to double in fiscal 2027 to $600 million. Marvell estimates that the Ethernet switching business could exceed $1 billion in annualized revenue in fiscal 2028. \u00a0 <\/p>\n Marvell, therefore, is growing faster than the optical networking market. Importantly, the significant growth opportunity in this market suggests that Marvell can sustain its impressive growth over the long run. Consensus estimates are projecting Marvell’s revenue to double in just two fiscal years, and don’t be surprised to see it keep growing at a healthy pace for a longer period. <\/p>\n MRVL Revenue Estimates for Current Fiscal Year<\/a> data by YCharts<\/a> <\/p>\n Is the stock a buy now? <\/p>\n Marvell stock has shot up 165% so far in 2026. This explains its expensive price-to-earnings (P\/E) ratio of 81. The forward earnings multiple of 58, though expensive, points toward a solid increase in the company’s bottom line. <\/p>\n Consensus estimates project a 43% increase in Marvell’s earnings per share this year to $4.05. Importantly, its earnings growth is poised to accelerate. <\/p>\n MRVL EPS Estimates for Current Fiscal Year<\/a> data by YCharts<\/a> <\/p>\n This potential acceleration justifies this semiconductor stock’s expensive multiples. The iShares Semiconductor ETF, an exchange-traded fund that tracks the semiconductor sector, has a P\/E ratio of 64. So, it can be considered that Marvell’s forward earnings multiple is almost in line with the broader index. <\/p>\n Assuming Marvell trades at even 45 times earnings after three fiscal years and its earnings per share jump to $9.45, as seen in the chart above, its stock price could reach $425. That’s a potential jump of 80% over Marvell’s current stock price. However, this AI stock could deliver greater gains if its earnings growth outpaces market expectations, driven by exponential growth in optical networking. <\/p>\n So, investors looking to capitalize on the next big AI bottleneck will do well to buy Marvell Technology stock before it soars higher. <\/p>\n Should you buy stock in Marvell Technology right now? <\/p>\n Before you buy stock in\u00a0Marvell Technology, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Marvell Technology\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $429,223!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,317,883!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of August 24, 2026. <\/p>\n Harsh Chauhan<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Marvell Technology, Micron Technology, and iShares Trust – iShares Semiconductor ETF. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> <\/p>\n
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