Marvell Technology’s stock fell 8% in premarket trading following the release of its second-quarter financial results and updated guidance, despite the chipmaker posting stronger-than-expected revenue and raising its outlook for fiscal 2028. The decline reflected investor disappointment that the company’s raised guidance did not fully meet the elevated expectations that had built up ahead of the earnings announcement.
The chipmaker reported second-quarter revenue of $2.7 billion, representing 37% year-over-year growth and exceeding its previous guidance by $39 million. Management raised its fiscal 2028 revenue forecast to approximately $18 billion, up from a prior projection of $16.5 billion, implying 50% year-on-year growth. The company’s data center division showed particular strength, with revenue accelerating 46% year over year, driven by robust demand for its networking, connectivity and custom chips used in AI data centers.
Chairman and CEO Matt Murphy attributed the results to sustained strong demand across the company’s data center portfolio and noted that AI-related bookings remained exceptionally robust. He indicated the company expected revenue growth to accelerate further through the remainder of fiscal 2027. The company had announced a partnership with Google the previous week that allows the tech giant to purchase up to 58.97 million Marvell shares at $206.58 each, with purchases subject to targets through fiscal 2033. The agreement covers products designed to work with Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.
Goldman Sachs analysts attributed the stock’s weakness to elevated investor expectations that had accumulated before the quarter, bolstered by reports of robust spending from key customers and the previously disclosed Google relationship. While the analysts characterized the results as an incremental positive for the stock, they maintained a neutral rating on Marvell, citing the company’s higher valuation relative to peers and uncertainty regarding its ability to attract additional custom-chip customers. Despite the quarterly decline, the stock remained significantly higher on the year, having gained 184% to date.
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