Marvell Technology shares fell on Friday following the release of its second-quarter results, despite the chipmaker topping revenue expectations and raising its forward guidance. The stock declined 6% as market participants determined the company’s updated outlook did not sufficiently address elevated investor expectations heading into the earnings announcement.
The semiconductor manufacturer reported fiscal second-quarter revenue of $2.7 billion, representing 37% year-over-year growth and surpassing the guidance provided in May by $39 million. For fiscal 2028, Marvell raised its revenue projection to approximately $18 billion, reflecting anticipated 50% annual growth compared to its previously issued forecast of $16.5 billion. Despite these results, the company provided limited detail regarding its fiscal 2028 outlook, which contributed to a muted investor response.
Marvell specializes in networking, connectivity, and custom chips used in artificial intelligence data centers. The company’s data center portfolio segment demonstrated particularly strong performance, with revenue accelerating to 46% year-over-year growth. Company leadership attributed the results to robust demand across this segment, with Chairman and CEO Matt Murphy noting that AI-related bookings remained exceptionally strong and projecting further revenue acceleration through the remainder of fiscal 2027.
The stock performance occurred in the context of a previously announced partnership with Google, valued at up to $12.2 billion in share purchases. Under the agreement, Google may acquire up to 58.97 million Marvell shares at $206.58 each through fiscal 2033, with purchases subject to meeting specified targets. The arrangement covers products designed to work with Google’s TPU systems, including AI inference chips, storage controllers, and network interface controllers. Despite this development, Goldman Sachs analysts indicated that investor expectations had been particularly elevated ahead of earnings due to robust customer spending and the disclosed Google relationship. The investment bank maintained a neutral rating on Marvell, citing higher valuation multiples relative to peers and uncertainty regarding the company’s ability to expand its custom-chip customer base. Marvell shares had appreciated 184% earlier in the year, driven by sustained demand for its AI infrastructure products.
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