Marvell Technology experienced a stock decline on Friday following its quarterly earnings announcement, despite achieving revenue results that exceeded guidance. The chipmaker reported fiscal second-quarter revenue of $2.7 billion, representing 37% year-on-year growth and surpassing the company’s May forecast by $39 million.
The company raised its fiscal 2028 revenue outlook, now projecting growth of approximately 50% year-on-year to reach around $18 billion, up from its previous forecast of $16.5 billion. However, the limited detail provided in the forward guidance dampened market enthusiasm. The stock declined 6.6% in trading following the announcement, though it has appreciated 184% earlier in the year amid strong demand for its artificial intelligence infrastructure products.
Marvell’s business performance reflected robust conditions in its data center segment, where revenue growth accelerated to 46% year over year. The company’s portfolio includes networking, connectivity and custom chips utilized in AI data centers. Chief Executive Officer Matt Murphy attributed the results to sustained strong demand across the company’s data center offerings and noted that AI-related bookings remained exceptionally robust, with expectations for further revenue acceleration through the remainder of fiscal 2027.
The market’s muted response occurred despite a significant partnership agreement with Google announced the previous week. Under this arrangement, Google committed to purchasing up to 58.97 million Marvell shares at $206.58 each, with purchase targets extending through fiscal 2033. The partnership covers products designed to function with Google’s TPU systems, encompassing AI inference chips, storage controllers and network interface controllers.
Goldman Sachs analysts indicated that investor expectations had been elevated ahead of the earnings report, citing robust spending from key customers and the previously disclosed Google relationship. While the investment bank characterized the results as an incremental positive, it maintained a neutral rating on Marvell, noting the company’s higher valuation relative to peers and uncertainty surrounding its capacity to expand its custom-chip customer base.
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