Marvell Technology reported fiscal 2027 second-quarter results for the period ended July 2026 and raised its revenue outlook for both fiscal 2027 and fiscal 2028. The company now expects $12 billion in revenue for fiscal 2027, up from prior guidance of $11.5 billion, and $18 billion for fiscal 2028, up from $16.5 billion previously. Those figures imply 45% and 50% year-over-year growth, respectively. Management also said data center revenue is expected to grow by more than 60%, while custom ASIC revenue is still projected to more than double in fiscal 2028. The problem for investors was not the headline increase, but the gap between expectations and what Marvell actually delivered. Before the earnings release, major institutions had already modeled roughly $11.8 billion for fiscal 2027 and $17 billion to $17.5 billion for fiscal 2028. Against that backdrop, the new company targets were only modestly ahead of consensus. The contrast with Nvidia’s stronger growth framing was hard to miss. Marvell posted quarterly revenue of $2.74 billion, up 13% sequentially and close to the $2.75 billion market expectation. Data center revenue reached $2.17 billion, up 19% quarter over quarter and accounting for 79% of total revenue, driven mainly by connectivity products. Even so, investor attention stayed fixed on custom ASIC. After Marvell’s recent agreement with Google, the market had been looking for a more aggressive ASIC update. Management did not raise that outlook and said more detail, including scenario ranges, will be discussed at its Oct. 6 analyst day.

Morgan Stanley has raised its estimate for the AI scale-up networking opportunity in 2030 to about $70 billion, more than four times last year’s forecast. The bank’s latest note does not argue that co-packaged optics, or CPO, is about to break out. Its point is almost the opposite: as AI clusters move from single-rack systems to multi-rack deployments, the overall back-end networking market grows sharply, but short-distance links still favor copper for now on cost, latency, and power. In Morgan Stanley’s timeline, CPO penetration in scale-up networks stays near zero in 2026 and 2027, starts to appear in 2028, and only reaches a meaningful 20% to 30% by 2029 to 2030. That sequencing shapes the list of likely winners. Companies helping copper run faster and farther, including Astera Labs, Broadcom and Semtech, are positioned to benefit earlier. Keysight Technologies stands out because broader architectural fragmentation across NVLink, UALink, SUE, PCIe and cloud-specific interconnects drives more testing demand regardless of which link technology wins. By contrast, Corning, Lumentum and Coherent offer more upside if large GPU domains arrive on schedule and optical content expands materially. Morgan Stanley’s view is that the market is getting bigger, but the path to large-scale optical adoption still depends on platform timing, manufacturing maturity and customer willingness to absorb complexity in packaging, maintenance and supply chains.

According to Odaily, people familiar with the matter said NVIDIA has decided, for now, not to adopt Taiwan Semiconductor Manufacturing Co.'s COUPE technology route. The company’s earlier “Plan A” was built on TSMC’s co-packaged optics platform and used 8-wavelength dense wavelength division multiplexing, or DWDM, along with roughly 50 to 64G NRZ modulation. NVIDIA’s latest “Plan B” instead moves to Tower Semiconductor’s silicon photonics platform. That setup uses 16-wavelength DWDM and 200G/400G PAM4 modulation, marking a clear change in the optical packaging and transmission approach described in the report. No additional timeline or reason for the switch was disclosed in the source item.