Marvell Israel GM Eran Haruty Talks AI Growth and Chip Sector Volatility
Eran Haruty, general manager of Marvell Israel, discusses the booming AI chip sector, massive data center revenue projections, and the strategic Lumentum acquisition amid recent market volatility.
The semiconductor sector has experienced significant volatility against the backdrop of a sharp market downturn led by chip stocks. In a recent interview at the Globes tech conference, Eran Haruty, general manager of Marvell Israel and vice president of engineering for the Cloud Switch BU, discussed the company's strategic trajectory, the artificial intelligence revolution, and market dynamics.
Marvell, an American multinational operating in Israel since the 2000s following its acquisition of Galileo, currently boasts a market valuation of $127 billion. Haruty emphasized that the company's pivot toward data infrastructure and AI-specific connectivity chips was a calculated, long-term strategy rather than a fleeting market trend.
Revenue Growth and Market Projections
Addressing the explosive growth in AI infrastructure demand, Haruty noted that revenues are scaling rapidly. While the previous year brought $8.2 billion—with $6.1 billion generated by data centers—projections for the current year reach $12 billion, and next year is expected to hit $20 billion, out of which $18 billion will stem directly from data center operations.
Commenting on the recent 16.4% plunge in Marvell shares amid a broader 12% drop in the semiconductor index, Haruty maintained that market fluctuations are driven by external factors such as US midterm elections, regulatory uncertainties, and capital expenditure (CAPEX) concerns among hyperscalers. However, he expressed absolute confidence that the AI revolution will fully realize its technological and economic potential.
The Lumentum Acquisition and Connectivity
Marvell has cemented its leadership in optical connectivity through its major acquisition of Lumentum. As AI model training and inference require massive clusters comprising tens of thousands of processors, high-performance interconnects have become critical. The transition from traditional copper wiring to advanced optical technology is accelerating, positioning Marvell at the forefront of the sector alongside industry giants.
Although financial institutions such as Bank of America have recently adjusted their targets amid market uncertainty, Haruty stressed that long-term strategic planning relies on the fundamental physical constraints of computing rather than short-term stock movements. Furthermore, he highlighted Israel's unique contribution to the global tech ecosystem, praising local engineering talent and resilience despite regional challenges.
