Marvell Technology shares fell on Friday following the release of its second-quarter financial results, despite the company beating revenue forecasts and raising its medium-term outlook. The chipmaker reported revenue of $2.7 billion in the fiscal second quarter, exceeding guidance by $39 million and representing 37% year-over-year growth. The stock traded down 6.6% following the announcement.
The company raised its fiscal 2028 revenue guidance to approximately $18 billion, an increase from its previous forecast of $16.5 billion. This revision reflected expectations for 50% year-over-year revenue growth. Management attributed the performance to sustained demand for its data center products, which posted 46% year-over-year revenue growth. Chief Executive Matt Murphy stated that bookings related to artificial intelligence applications remained strong and that the company anticipated accelerated revenue growth through the remainder of fiscal 2027.
Investor sentiment was dampened by limited disclosure surrounding the fiscal 2028 outlook. This came despite the announcement of a strategic partnership with Google valued at up to $12.2 billion in share purchases, which had generated optimism about future earnings potential. Under the arrangement, Google holds the right to acquire up to 58.97 million Marvell shares at $206.58 each through fiscal 2033, with the partnership covering networking, storage, and artificial intelligence inference products designed to work with Google’s TPU systems.
Analysts attributed the market reaction to heightened expectations entering the quarter. Goldman Sachs noted that investor sentiment had been buoyed by strong spending indicators from major customers and disclosure of the Google relationship. While characterizing the results as incrementally positive, Goldman Sachs maintained a neutral stance on the stock, citing elevated valuation multiples relative to competitors and uncertainty regarding the company’s capacity to expand its custom-chip customer base.
Marvell’s stock has appreciated significantly this year, gaining 184% as demand for its artificial intelligence infrastructure products has grown.
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