Marvell Technology shares fell on Friday following the release of second-quarter earnings results that included a revenue beat but failed to satisfy investor expectations for future growth guidance. The chipmaker reported that second-quarter revenue increased 37% year-over-year to $2.7 billion, surpassing company guidance by $39 million. The stock declined 6.6% in trading following the announcement.
The company raised its fiscal 2028 revenue outlook, now projecting approximately $18 billion in revenue representing about 50% year-over-year growth, up from a previously issued forecast of $16.5 billion. Despite this upward revision, the guidance lacked sufficient detail to meet market sentiment, particularly given investor hopes that a partnership announcement with Google would provide additional earnings momentum. According to company leadership, the results reflected sustained strong demand across the data center portfolio, which achieved 46% year-over-year revenue acceleration.
Marvell’s Chief Executive Matt Murphy attributed the performance to continued robust demand in the data center segment and noted that AI-related bookings remained exceptionally strong. The company indicated expectations for further revenue acceleration through the remainder of fiscal 2027. A Google partnership disclosed in the prior week allows the technology company to purchase up to 58.97 million Marvell shares at $206.58 each, with purchases potentially occurring through fiscal 2033. The agreement encompasses products designed to work with Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.
Goldman Sachs analysts observed that investor expectations heading into the quarter had been elevated due to robust customer spending and the previously disclosed Google relationship. The investment bank characterized the results as an “incremental positive” but maintained a neutral rating on the stock, citing its higher valuation compared to peer companies and uncertainty regarding the company’s ability to acquire additional custom-chip customers. The stock has gained 184% during the year to date, reflecting broader market enthusiasm for chips used in AI infrastructure.
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